Private Equity Exit Strategies

The number of private equity exits is expected to keep growing in 2014. According to Preqin, there were 1,348 private equity-backed exits globally in 2013.


28 April 2014

Private Equity Exit Strategies - www.dealcloserblog.com

The number of private equity exits, which has been on an upswing, is expected to keep growing in 2014.

According to Preqin, there were 1,348 private equity-backed exits globally in 2013, up from 1,299 the previous year.  
At the recent “Private Equity Exit Strategies” seminar, Matt Porzio, vice president of strategy & product marketing at Intralinks, moderated a discussion with Gerald Parsky, chairman of Aurora Capital Group, JP Paquin, managing director of Brown Brothers Harriman and David Solomon, CEO of Lazard Middle Market. The discussion ranged in topics about the current state of the markets and what to expect in the future.

Matt kicked off the discussion by asking the expert panel on their insights regarding the mixed reports there have been lately on PE activity and exits in 2013.  He asked for their insight on why the United States activity was down, and what made PE activity up in the overall global market. Porzio also asked what drove those trends and what the outlook was for the rest of the year.

The roundtable opened up with panelist Gerald Parsky, who spoke about the strong year for exits in 2013. PE firms were able to grow solid businesses and put them up for sale.  Since the credit markets created the type of environment with a good number of buyers willing to borrow low cost debt, this led to booming exit levels.

When the floor opened up to the rest of the panelists, they all agreed that public markets continue to do well on the equity side and that the credit markets are showing no signs of cooling down.  In conjunction with all the dry powder on the sidelines, all the panelists agreed that 2014 would prove to be strong market for PE acquirers.

David Solomon also added that there was a huge rush for exit strategies in 2012 because of the capital gains change, so any exits that were going to be sold in the beginning of 2013 were expedited to close in 2012, leaving somewhat of a gap in early 2013.

“Credit markets probably going to stay open, and they’re very strong right now,” said Solomon. “With all of the cash on the sidelines, we have plenty of buying capacity both from strategic transactions and the financial side.”

Which sectors are poised will see the most private equity exits? Will financial sponsors or strategic buyers be more active in acquiring portfolio companies? What are the outlooks for distressed exits, IPO’s, and dividend recaps?

To hear the answers to these questions, watch the full discussion on private exit strategies from industry experts here. Enjoy!



Brian Hwang

Brian Hwang

Brian S. Hwang is Director of Strategic Business & Corporate Development at Intralinks. Brian joined Intralinks from RR Donnelley Global Capital Markets where he primarily worked with clients in the Midwest and Northeast, consulting on initiatives related to disclosure issues for SEC financial reporting, US Proxy compliance and transactional due diligence. Brian started his career with New York City law firm Wachtell, Lipton, Rosen & Katz, where he was involved in the due diligence and execution of transactions, valued at over $350 billion.