With private equity exits hitting a post-pandemic low point and dealmaking proving challenging due to financing conditions and valuation gaps, Harriet Matthews and Rachel Lewis discuss the current PE exits landscape, with a guest interview from Equistone senior partner Steve O’Hare.
Secondary buyouts (SBOs) in particular have suffered in 1H 2023, with just 41 getting over the line as GPs remain reluctant to bring assets to market and are cautious around deployment on the buyside.
In an interview with Unquote, O’Hare shares his and Equistone’s experience of making exits in the current market, having made eight realisations in the past year and a half. He discusses topics including the importance of preparation in bringing an asset to market, the role of advisers, and the GP’s value creation methods.
Following the interview, the Unquote team assess key takeaways, including the role of financing in getting deals over the line as well as the market’s hope for a wave of pent-up demand as advisers appear to be getting increasingly busy.
The team also assesses the prospects for GP-led secondaries as an exit route, as well as the changing role of EBITDA in auctions, with prospective buyers placing more emphasis on cashflows and profitability.
1:20 – Breaking down Mergermarket’s data
4:56 – Assessing the obstacles
7:38 – Interview with Steve O’Hare, senior partner at Equistone
21:45 – Key takeaways: Debt
27:00 – Pent-up demand
28:40 – GP-led hopes and creative solutions
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater