Download the July/August 2020 issue of Unquote
This month in Unquote: Buy-and-build is a good match for the current climate, but not immune from a tough financing market and pricing expectation mismatches
Many GPs believe now may be an opportune time to build a group in a sector that they know well, based on a platform investment for which they have already secured acquisition financing. With record amounts of dry powder accumulated in the past three years – and little opportunity to deploy it at scale for new deals in the current environment – bolt-ons also have the appeal of keeping deployment steady.
However, the gap between buyers' and sellers' pricing expectations are regularly cited as a barrier for deal-doing in the current market, and it goes some way to explaining why bolt-on statistics have also been depressed in Q2. Meanwhile, securing financing to support such deals is proving troublesome as lenders shy away from risk.
Also in this issue:
- Early secondaries help assuage LP default fears
- Suma Capital, CPP Investments in profile
- DACH venture capital looks for a new normal
- Confidence soars for Nordic e-commerce
- Our usual in-depth coverage and statistical analysis of activity in each regional market
To download the latest issue of Unquote in PDF format, please click here
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