find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Private equity deals ease off

Private equity deals ease off

The strength of the private equity sector trailed off in the second half of FY15, a new report from Minter Ellison has shown.

The report Directions in Private Equity shows a spike in deal activity in the private equity market for deals under $100 million in the first half of the financial year.

However, deal activity in the mid-market began to trail off in the second half of FY15.

Minter Ellison partner and report author Ricky Casali pointed to availability of assets as a key challenge.

"A shortage of assets, not capital, is constraining Australian private equity deal activity," he said.

According to the report, a weaker Australian dollar and continued US recovery is likely to cause greater competition for assets from overseas buyers in the year to come.

The three most active sectors for private equity sponsors were health/medical, education and transport.

Minter Ellison partner Glen Sauer, a co-author of the report, suggested the focus was likely to change in the next year.

“Given the prices realised in those sectors in FY15 and competition from strategic corporate investors, we expect their focus in FY16 to shift to other areas such as financial services, food and retail opportunities,” he said. “Non-core business units of larger corporates will also be attractive at the right price."

Businesses with a strong digital presence are particularly well placed to attract attention from private equity funds, he believes.

In the last financial year, funds raised significant funds from overseas inflows, the report found.

“While Australian institutional investors are increasingly looking to invest in offshore PE funds, in FY15 we saw significant amounts of offshore money flowing into Australia: on average, sub-A$300 million funds raised around 40 per cent of capital from offshore; bigger funds raised 50 per cent to 70 per cent from offshore," Mr Casali said.

"There is also a lot of institutional and family office money chasing quality co-investment opportunities. This, coupled with the improved borrowing conditions, means that quality deals will get funded.”

Like this story? Subscribe to our free newsletter and receive Lawyers Weekly every day straight to your inbox.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Private equity deals ease off
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Consultation
06:04
Lawyers slam rushed consultation for SA repeat offenders bill
The Law Society of South Australia has expressed concern for a proposal to roll out new laws amendin...
IBA
06:03
The pursuit of happiness in the law
A panel of legal experts have explored how to define success in the legal profession, and how lawyer...
Queensland University of Technology, ruby milestone
06:00
Queensland law school reaches ruby milestone
Celebrating 40 years since establishing a law course in 1977, the Queensland University of Technolog...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...