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May 2015 Private Equity Digest
Practices
People
May 21, 2015 download PDF
In this edition of the Paul, Weiss Private Equity Digest, we look at (i) using management vehicles to structure profit interests and (ii) newly issued Section 162(m) rules relating to post-IPO transitions.
In market news, after the strongest month of the year so far in March ($97.2 billion) U.S. sponsor-related M&A activity was down significantly in April to $28.6 billion. Global sponsor-related M&A activity showed similar trends, with total dollar value down significantly from March ($130.2 billion) to $51.5 billion in April, coupled with a decline in the number of deals (314 transactions), the lowest level of deal activity in the last 12 months. U.S. sponsor-backed exits were a bright spot with strong gains in April ($42.07 billion) from March ($16.81 billion).
U.S. private equity fundraising saw a strong increase in dollar value to $20.1 billion in April, from $6.8 billion in March. The number of funds that closed was also up, with 32 funds closing in April, as compared to 27 funds closed in March, continuing an upward trend from January.