Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Akerman: Sub-$1 Billion PE Funds Post Steady Activity in 2018

Akerman: Sub-$1 Billion PE Funds Post Steady Activity in 2018

Deal flow for sub-$1 billion private equity funds accelerated as 2018 began and set an all-time record for any first quarter, according to data analyzed by top U.S. law firm Akerman LLP. Despite this year’s decrease experienced by the rest of middle market funds, data found in the second quarterly Akerman PErspectives Report indicate activity surrounding sub-$1 billion funds continued to show positive divergence from larger peers.

Compared to 2017, exit value and volume for sub-$1 billion buyout vehicles for Q1 2018 also were up and stable. Based on Akerman’s analysis, these metrics indicate those funds were relatively more active in deploying capital during Q1 2018 than their larger counterparts, while maintaining relatively favorable exit metrics.

“Sub-$1 billion PE funds are poised for another strong year, thereby increasing their lure as compelling investment vehicles among the range of popular alternative asset classes,” said Carl Roston, co-chair of Akerman’s Corporate Practice Group. “In such a competitive market environment, these funds require effective deal advisors able to act as deft risk managers that can execute upon often accelerated transactions, foster collaboration with management teams and drive efficiencies.”

“Our report shows available data for 2018 indicate deal flow for U.S. PE funds in the sub-$1 billion range has so far equaled to a third of all middle market transactions,” said Jonathan Awner, co-chair of Akerman’s Corporate Practice Group. “With increasing volatility rippling through the markets this year, this data point alone shows the resilience and overall attractiveness of this fund range, a market segment which Akerman lawyers have long served and understand.”

Second Edition Highlights
• The subset of the market Akerman analyzed (relative to prior figures) has exhibited considerably more resilience in deal flow and exits in Q1 2018.
• Even by searching for better-priced, smaller companies, Akerman’s sample of PE buyers has nonetheless spent a hefty sum; at $14.8 billion in aggregate deal value already, Q1 2018 totals stand at a third of 2017 ones.
• Q1 2018 has seen a slower start to fundraising within Akerman’s sample compared to 2017, something to be expected considering typical economic cycles.
• When it comes to first-time fundraising, investors overall did not deploy capital as aggressively in Q1 2018. But the prior two years experienced torrid activity, with 41 first-time funds closed on more than $13 billion, the strongest two-year tally ever.

Access the Akerman report here.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post