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Unquote Private Equity Podcast: The PE auction in times of exit scarcity

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With sponsors looking to bypass challenging debt markets and macroeconomic uncertainty, funds editor Harriet Matthews hosts private equity reporter Rachel Lewis to discuss how the dynamics of auction processes and GPs’ approach to exits are shifting in the current market environment.

In a market rife with uncertainty, many sponsors are shifting their focus from exiting companies via structured, broad auction processes, instead preferring to hold more direct, bilateral negotiations with credible parties to secure deals.

Meanwhile, the lack of availability of debt has driven some sponsors to do all-equity deals with a plan to seek financing later, or to take on a co-investor at the outset to reduce their equity exposure to an asset.

Rachel Lewis and Harriet Matthews explore examples of this trend and discuss how GPs are getting creative on exits and investments.

1:04 – Review/preview
1:54 – Changing auction dynamics
3:33 – Bilaterals are back
4:57 – Underwriting woes
6:51 – Getting creative
12:19 – Light at the end of the tunnel?

Click here to read more about this topic on Unquote.com.

You can listen to the podcast in the audio player above, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.

Theme music: ©2012 Kick Up The Fire

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