The soothsayers seem to be warning private equity about the Ides of March. Between the Bank of England forecasting that PE will cause the next financial crisis and Goldman Sachs claiming that the industry is shrinking, outlooks have been bleak. However, some believe that the M&A industry will evolve, rather than simply disappear.
In other news — Carlyle has begun accepting investments as small as $50,000 for their buyout funds, Richard Branson offered some insight for M&A best practices, and our CEO was on Fox News last night.
Private Equity Crash Could Trigger Next Wave of Financial Crisis, Bank Warns: The Bank of England recently warned that private equity may be responsible for the next financial crisis. The bank fears that the mega-buyouts of the 2006-2007 heydey has left many companies debt-ridden and on a dangerous path.
Goldman: The Private Equity World is Shrinking: According to Goldman Sachs, there is an imminent “private equity cliff.” Because of shrinking AuM, slow fundraising, and a growing number of funds, GS thinks the industry might be headed for some difficult times.
Why the Standard Private Equity Fund is Losing its Luster: Like GS, Ronald Sylvestri, Jr. has also picked up on the changing PE climates. However, he believes that rather than falling off a cliff, private equiteers will learn to adapt — whether by changing their investment time frame, changing the fund structure, or other new approaches.
Carlyle Latest Private Equity Firm to Open Doors to Smaller Investors: Want to become an LP for Carlyle? Might be easier than you think — Carlyle recently began allowing customers to invest in its buyout funds for just $50,000. Will other firms — both big and small — follow suit and “lower the velvet rope”?
New Dell Suitors Don’t Make Much Sense: There’s just a little more than a week remaining in Dell’s “go-shop” period. While Lenovo, Hewlett-Packard, Carl Icahn, and Blackstone have signed NDAs to learn more about Dell’s details, it seems unlikely that any will top the existing $13.65 per share offer.
Health Care Appraisers Share Valuation Tips and Trends: Although the 2013 ASC Valuation Survey focuses primarily on ambulatory surgery centers, it offers some key learnings for health care valuations and multiples. There’s a PDF and Webinar, as well.
Richard Branson on Thriving After Mergers and Acquisitions: Richard Branson dolls out some advice on how to successfully manage a merger. While he admits that it is never easy, entering the process with respect, brand awareness, and appreciation for different working procedures can increase the chances of success.
Lastly, our CEO Peter Lehrman was on The Willis Report last night. He spoke about Axial, the middle market, and outlook for 2013.