stats

US-based PE Investors See Slight in Improvement in Exits and Valuations

by

October 1, 2012

A new survey by Eisner Amper, an accounting consultancy in the US, reveals that a majority of private equity investors anticipate that the same number or an increased number of acquisitions and exits will occur by the end of this year compared to the first half.

 

The same group is working harder to access and close deals due to increasing competition  for both acquisitions and exits. As a result they are spending the majority of their time on business development and sourcing deals. They also will spend much of their time looking for and working on acquisitions.

 

Eisner Amper writes that despite earlier optimism and media predictions for a surge in new acquisitions in 2012, pressure on private equity firms to invest capital from their aging funds has not been adequate to close deals. Economic uncertainty, market volatility and debtmarket conditions continue to create a yet-unbridged gap between buyers and sellers, making closing deals difficult.

 

With worldwide political and financial crises fueling uncertainty, the private equity market, and all related markets and activities, will continue to be unstable for the foreseeable future. Private equity firms may want to augment their focus on the investments they have made. EisnerAmper has been tracking the views and opinions of senior private equity fund executives in the US for three years.

Other findings

  • Those surveyed were not optimistic about an improvement in the availability of debt financing; however, more expect it will stay level as compared to 1H 2012.

 

  • As for dry powder, the majority of executives felt that they would be investing a quarter or less of it this half year and that the percent of capital remaining in most funds is steadily decreasing.

 

  • When it comes to fundraising, more than half of those surveyed plan to have their firms spend little or no time on fundraising.

 

  • Fewer funds are raising more of the dollars because institutional investors are supporting large, established firms and “brand names”. (Image Source: Eisner Amper)
Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedIn