Legal firm, Weil offers its predictions for 2013 in its Alert newlsetter that we read and summarized here for you. The above graphic provides quick overview of 2012 activity. The list below is from the Weil forecast for the year.
– Expect deal volume to be slow in the early months of 2013. The macro environment for private equity continues to be strong. Debt is available for buyouts.
– Expect more seconardary LBOs . There will be willingness to sell from 2005, 2006, and 2007 vintage funds that are winding down. secondary LBOs.
– Try Aisle 6 – We expect continued diversification by sponsors, with certain sponsors providing “onestop” alternative asset hopping to the LP community. While some sponsors are rapidly becoming alternative asset supermarkets, others are dipping their toes into the pool of diversification by expanding into credit and other funds.
– Passing the Baton – As the industry matures (and its founders continue to age), succession issues will continue to be a major focus of sponsors as well as the LP community. According to Coller Capital, 73% of LPs are focused on succession issues at the sponsors where they invest.
– Continuing Need for Private Equity – We expect the private equity industry to continue to survive (Image source: created by Dealmarket Digest)