The coronavirus pandemic hasn’t slowed interest by private equity firms putting their cash to work in distressed firms. Although deal activity was down from March to April, general partners in private equity firms are still searching for value wherever they can find it. And they have the means to do it. After years of solid fundraising – which ... READ MORE >
The future of work: Five predictions for private equity firms
As businesses around the world consider how they return to work amid the coronavirus pandemic, private equity professionals are already making plans for widespread changes to their workforce. Like other businesses, private equity firms have limited non-essential travel, closed offices and imposed strict limits on in-person contact. But it has come at a ... READ MORE >
Global M&A nosedives, and what comes next is still in question
Global mergers and acquisitions plunged in April as companies worked through business challenges resulting from the coronavirus. Through April and the first part of May, the total value of announced deals was $207 billion, according to Bloomberg, beginning what is expected to be a year over year decline of more than 50% for the second quarter. M&A has ... READ MORE >
As private equity firms prepare to deploy cash, a backlash looms
As many middle market businesses struggle to stay above water, private equity firms are well-positioned to provide a lifeline. They have been preparing for this moment for years, heeding a lesson from the Great Recession that they need capital to deploy when the valuations are low and struggling companies are receptive to investment. Indeed, the ... READ MORE >
For private equity firms, valuations become a difficult question
Many RSM clients with portfolio companies have recently completed their year-end audits and are now preparing to do their first-quarter valuations. But while that has been a relatively straightforward proposition in recent years, it is anything but this year. How do private equity firms determine the fair value of their holdings when those values seem to ... READ MORE >
How private equity firms might qualify for SBA financing
In early 2012, The Atlantic published an article, “Private Equity Is a Force for Good” that gave a clear-eyed look at the industry and its impact on the economy.. Eight years later, the private equity industry, with billions in capital ready to put to work, is in a position to help the economy recover from the coronavirus pandemic by investing in growing ... READ MORE >
In the confusion of a pandemic, alternative data can show the way
Suppose you could turn back time and re-evaluate your company’s response to the coronavirus. There’s no crystal ball, but you have something that offers great insight – alternative data. How would you use it and what would you do differently? Which data sources would you trust the most and how would you reformulate your company’s response? Instead of ... READ MORE >
As coronavirus spreads, private equity contracts even as it prepares for a rebound
As the U.S. financial system and broader economy swoon from fear of the damage that the coronavirus will leave in its wake, private equity deal flow will soon begin to feel the pinch. Although data for the first quarter of 2020 is not yet complete, indications are that deal flow has slowed based on the dollar value, deal count and average premiums paid in ... READ MORE >
As ESG accreditation evolves, don’t forget the Principles for Responsible Investment
As socially responsible investing has grown in recent years, so too have the number of organizations looking to create some sort of accreditation for investors. Groups like the Sustainable Accounting Standards Board, the Global Reporting Initiative and CDP Global are looking for ways to provide a sort of Good Housekeeping Seal of Approval that reassures ... READ MORE >
Private equity is booming. So why are fewer middle market launches planned for 2020?
These are heady times for the private equity industry. With interest rates low and doubts swirling about the bull market’s longevity – not to mention dreary returns in the competing hedge fund industry – investors are pouring cash into private equity funds. Indeed, there is more private equity capital to deploy than ever before. According to Preqin, a ... READ MORE >