Podcast - Credit Funds: How PE Funds Can Address and Minimize Conflict When Expanding Into Credit
Patience is proving to be a virtue for a private equity industry that began 2024 sitting on more than 28,000 portfolio companies valued at more than $3 trillion, according to a report by Bain & Company, as average hold...more
Over the past several years, sponsors have increasingly relied on add-on acquisitions to increase the value of their portfolio company investments. As EBITDA and revenue multiples on larger platform acquisitions increased...more
Holland & Knight's Independent Sponsors Team has seen an increasing number of independent sponsors taking part in transactions of seemingly all shapes and sizes. With increasing variation of transactions comes increasing...more
For a majority of PE, VC, and debt funds, catch-ups are 100%, but they are likely to be less than 100% for real estate and infrastructure funds. In a previous article, we showed that hurdle rates set by private...more
Private equity funds show the least variation, with 80% of PE funds setting hurdle rates at 8%. Real estate funds are almost as likely to set rates at 7% or 9% as 8%....more
Despite a recent slowdown in broader mergers and acquisitions (M&A) activity, and specifically in private equity deals, the independent sponsor market has continued to expand and mature over the past several years. With the...more
The CMA increasingly reviews PE mergers including historic roll-up deals, which will prompt sponsors to reassess merger control risks. The UK’s Competition and Markets Authority (CMA) is increasingly focused on...more
GP-led secondary deals — where a sponsor initiates the sale of portfolio companies from a fund it manages to a new fund it also manages — were a prominent feature of the private equity landscape in 2022, encouraged by...more
Consumer-facing companies face an increasingly complex UK regulatory landscape as multiple regulators place the spotlight on consumer rights and protections. A raft of new legislation is set to impact businesses and PE...more
PE firms face growing regulatory and litigation risks from greenwashing claims as they navigate a fragmented anti-greenwashing landscape. Amid concerns of exaggerated or misleading sustainability claims, the UK Financial...more
Sponsors are likely to explore share-based schemes and other plans to incentivise non-managerial staff. Incentivising management with sweet equity and co-investment opportunities is a tried and tested strategy for buyout...more
Market Overview - Q2 2022 - Downturn in Credit Markets: In its continued effort to combat rising inflation, the Federal Reserve Bank raised its benchmark interest rate in each of March, May, June and July of this year by...more
PE deal teams can increasingly access direct lending for large, cross-border buyouts but regulatory and structuring challenges across jurisdictions remain. Direct lending has long been a feature of the debt market, and...more
PE firms with non-competitor, majority-owned portfolio companies will face reduced risks of antitrust liability under Section 1 of the Sherman Act in the Eleventh Circuit. On May 24, 2022, the United States Court of...more
Under the new legislation, BEIS may block or impose conditions on deals. The UK’s National Security and Investment Act (NSI Act), is now officially in force, granting powers to the Secretary of State for Business, Energy...more
Undrawn credit lines are essential to private equity but in short supply from banks. Undrawn revolving credit facilities (RCFs) are essential to private equity. They are a backup in the event of mismatches in the working...more
This guide provides an overview of the processes, possible structures, and principal issues for consideration by an acquirer in connection with an acquisition of a publicly traded US company for cash (i.e., a “take-private”...more
Private equity sponsors have typically offered co-investment opportunities to certain large investors in their main funds, or as a means to bridge financing gaps in deals they might not otherwise be able to consummate. In...more
In an ultra-competitive deal market, investors continually look for attractive opportunities to deploy additional capital. While “independent sponsors” have been around for many years, the number of independent sponsors is at...more
Minority investments are an increasing feature of the Italian PE market. One key driver of minority investments is demand from many entrepreneurs, founders and small and medium-sized businesses for funding to refinance...more
It’s no secret that it has become more difficult for traditional private equity firms to raise captive funds. In fact, California Public Employees’ Retirement System is looking to further reduce its number of private equity...more