Private Equity Digs Deep Down Under

A report from Australia confirms that private equity is continuing its metamorphosis as it seeks innovative means of reaching targeted returns. The private equity market is still active, though not to the same degree as 12 to 18 months ago. Firms are continuing to work on their portfolio companies, complementary acquisitions deals for existing portfolio companies, and of course, the growing popularity of acquiring distressed debt.
Posted by Jeffrey Watson, Loewen & Partners


Anonymous said...

Is private equity just stopping until things get more stable - seems to be.

Jeffrey Watson said...

I wouldn't say that Private Equity firms are "stopping" at this point. There is two sides to a private equity firm, the hard part and the harder part. The hard part is raising money from institutional investors like pension funds or large banks; the harder part is find and investing in good companies. Right now, private equity firms are focusing on raising capital, a lot of capital actually. A recent report noted that there had been over $US 130 billion raised in the first half of the year. We should expect to see this money deployed over the next 12 to 18 months, primarily in infrastructure.