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Our Private Equity Group provides trusted counsel derived from deep industry knowledge to established as well as up-and-coming private equity firms. We represent firms of every size across the spectrum of investment strategies, and we build long-standing relationships with our clients. As active participants in the private equity industry, we are able to advise our clients on the latest innovations, as well as current market practices and trends.
September 24, 2020 Download PDF
Interest in special purpose acquisition companies (SPACs) has exploded in the last couple of years. In this issue of Private Equity digest, we discuss the pros and cons of some alternatives for private equity firms looking to participate in these vehicles.
In market news, U.S. private equity fundraising has declined significantly since July. Total capital raised fell by approximately 87%, while the total number of funds closed fell by approximately 32%. The dollar volume of U.S. sponsor-backed exits also fell from July, declining across secondary and IPO transactions, and remaining steady with respect to corporate sale transactions, though the number of U.S. sponsor-backed exits increased slightly by 5%. In line with this last observation, U.S. sponsor-related M&A activity was up 52% and 25% as measured by dollar value and deal count, respectively. Globally, sponsor-related M&A activity declined, falling approximately 26% and 10% as measured by dollar value and deal count, respectively.