The economic distress from the coronavirus pandemic is hitting the Canadian private equity market hard. The number of deals reached in Canada this year through Oct. 6 fell to 194, which at that pace would represent a 60% decline from 2019, according to PitchBook. The value of the deals plunged as well, falling to $26.8 billion. This represents a $53.2 ... READ MORE >
private equity
COVID-19 stifles middle market private equity dealmaking
U.S. middle market private equity deal and fundraising activity slowed through the second quarter as the global health pandemic continues to ravage American business. According to PitchBook, the number of closed middle market funds – defined as individual funds with assets under management of $1 billion or less – was only 35 during the second quarter, ... READ MORE >
Global M&A remains soft, but that could change as elections approach
Global mergers and acquisitions have had a slower start to 2020 compared to other years as companies continue to work through business challenges resulting from the coronavirus. Through June, the total value of announced deals was $327 billion, according to PitchBook. At that pace, the year would end with $654 billion of annual deal value, an 18% drop ... READ MORE >
401(k) plans can now offer investments in private equity, but should they?
It wasn’t too long ago that investing a 401(k) plan seemed simple enough: Choose a mutual fund – stocks, bonds or maybe a target date fund – and keep working until you retire. Private equity funds seemed a world away, the domain of high net-worth investors with the sophistication to understand the risk they were taking on. And indeed, lack of ... READ MORE >
As private equity firms hold onto investments, investors get restless
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 >
As SBA accepts new applications for Paycheck Protection Program, private equity is not eligible
As the Small Business Administration began accepting applications on Monday for loans under the second round of financing for the Paycheck Protection Program, private equity firms and hedge funds will not be eligible. The SBA released additional guidance for the program on April 24, settling the questions of some private equity and hedge fund managers who ... 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 >