Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  
Private equity focus shifts to western hemisphere as Europe's austerity and Asia's uncertainty weaken their deal markets, finds Bain & Co's 2013 Global Private Equity Report
 

May 19, 2013:- Private equity (PE) investment activity in the Americas is positioned for a solid year, while markets in Europe and Asia-Pacific tread water; this according to the fourth annual edition of the bellwether report on the state of the industry, released recently by Bain & Company, the world's leading advisor to PE investors. Bain finds that North America enters 2013 with favorable winds at its back:

Private equity showed clear signs of strength in North America and Brazil, South America's largest market, in 2012. Buyout deal value in North America was up 23 per cent in 2012, while deal activity in Europe and Asia-Pacific fell.

General partners (GPs) are optimistic that deal activity in North America will continue to increase into 2013 —majority of GPs surveyed expect investment activity to be up in North America in this year.

Debt markets are once again open for business. Investors are hungry for yield wherever they can find it in today's climate of sustained near-zero interest rates. With capital pouring into collateralized loan obligations and loan mutual funds, the availability and cost of debt rival what they had been during the boom years.

Helped by robust credit markets, conditions have become more favorable for public-to-private deals, which powered the 2006-2007 boom. It only takes a few large deals to move the needle on buyout deal value. Based on a screening of all US publicly-traded companies with a total enterprise value in the range of USD 3 billion to USD 50 billion, Bain finds that approximately six per cent of companies have the potential to be attractive public-to-private targets.

GPs are more motivated than ever to sell the growing backlog of investments, many of which were made during the during the boom years. But with the “exit overhang” now at more than USD 2 trillion, the industry will be counting on an improvement in the three major exit channels:

Sponsor-to sponsor (“secondary”) deals will broaden and deepen: Bain finds that returns on sponsor-to-sponsor deals are comparable to other deal types but are significantly less risky

The rising tide of corporate M&A may create new paths to exit, as strategic acquirers look for new targets

Brightest signs of life on the IPO front are in the US, where the strong run-up in the public equity markets has lifted stock prices to the pre-crisis peak, boding well for the mega-buyouts that will likely need to return to the public markets for liquidity

Limited partners (LPs) increase PE asset allocations and exposure:

The average target allocation to private equity for US public pension funds increased from 7.5 per cent to 8.3 per cent over the course of 2012

They recognize that, on average, returns from PE have outpaced other asset classes (i.e. fixed income, real estate, listed equities) over the long term and will continue to do so going forward

The pressure for LPs to boost returns and the need for GPs to secure capital is leading the two parties to experiment with a range of new models – including separate accounts, non-traditional fund models, and direct investment programs.

“In a world economy that remains prone to macro shocks, North America continues to be one of the most attractive markets to PE investors,” said Hugh MacArthur, head of Bain's Global Private Equity Practice and lead author of the report.”

Alexander De Mol, Bain Partner in Dubai, said: “The new findings of Bain & Company's Global Private Equity Report provide invaluable insights that have benefited key market players worldwide. This strongly demonstrates the value we bring to investors and businesses, particularly here in the Middle East where Bain is committed to help clients broaden their reach and optimize their investment potential across global markets.”


Posted by : Dubai PR Network Editorial Team
Viewed 8436 times
PR Category : Banking & Investments
Posted on : Monday, May 20, 2013  9:39:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Freedom is key to sustainable business
Next Story : UAE's Coffee champion Romeo Perello set to brew his best at ...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Pandora ME for Every Side of You [6302-Views]
10 Million Plastic Packaging Saved: Grohe Launches Initiative to Reduce Plastic [3731-Views]
Meet the #Sephorasquad Middle East Members! [3624-Views]
Karl Lagerfeld Announces Collaboration With Designer Kenneth Ize [3202-Views]
Discover the Perfect Gift This Eid Al Adha From Rasasi Perfumes [3108-Views]
Amp Up Your Beauty Routine With New Products From Missha Cosmetics [2710-Views]
Toric Tourbillon Slate'' [2522-Views]
17-Year Old Smashed a Guinness World Records Title in His Bedroom [2509-Views]
IMG Worlds is Back This Friday Park Entry Price at AED 20 Only [2489-Views]
Kia Launches ‘Live Stream Showroom' to Offer Customers an Innovative Digital Experience [2472-Views]
UAE Ranks in Top 10 on Kpmg's 2020 Global Autonomous Vehicles Readiness Index, for Third C... [2378-Views]
Dubai Sports World Marks Official Opening at Dubai World Trade Centre [2325-Views]
Celebrate Eid with Steve Madden [2308-Views]
Dubai Startup Hub and Dtec Announce Winners of Emirati Development Programme [2296-Views]
Champion Cleaners Launch New Home and Office Sanitization Service [2161-Views]
Dubai Culture Wins Excellence Award From Arab Federation for Libraries and Information [2152-Views]
Travellers Should ‘Wear to Care' in the New Normal says WTTC [2124-Views]
Al Habtoor Motors Launches Summer Surprises Stock clearance on Mitsubishi SUVs 2019 Model... [2116-Views]
Gems Education Rolls Out IBM Digital – Nation Platform to All Its Schools Following Succes... [2001-Views]
Dubai Sports Council Honours Winners of Pocari Sweat 19K Run [2001-Views]
H.E. Vipul Flags Off UAE's First Ever Individually Sponsored Flight to India [1956-Views]
Genesis Launches Special-Edition “stardust” G90 Model [1952-Views]
FDA Authorizes Marketing of IQOS as a Modified Risk Tobacco Product [1952-Views]
It All Started with a Sponge- Gaetano Pesce's Revolutionary Feminist Chair “UP” On Display... [1906-Views]
Dubai Customs' 2nd Consultative Council discusses challenges and opportunities of post Cov... [1890-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories