Reports: Private Markets Research and Insights
Current research from world leading experts
We strive to stay on top of all developments in the Private Market’s space. In order to stay ahead of the game, we conduct research and create insights to share with the wider public. Below are extracts and highlights from five of our reports, along with links to download the full reports.
Deloitte Alternative Lender Deal Tracker Report
The Deloitte Debt Advisory team monitors primary European mid-market deal activity (up to €350m of debt) through active dialogue with leading European alternative lenders.
More than 30 alternative debt funds currently participate in the Deloitte Alternative Lender Deal Tracker. The results are released to interested parties on a quarterly basis in a public version of the tracker.
Debt transactions rise
Debt transactions up 6% as alternative lenders recorded 34 deals in the UK and Europe for the second quarter of this year. The same period of 2013 recorded 32 deals.
Highlights in the report:
- Number of deals in H1 2014 38% higher than H1 2013.
- The UK remains the largest market for alternative lenders with 47% of the transactions followed by 25% in France and 12% in Germany.
- A higher proportion of transactions relate to M&A (59% of total deals in Q2 2014 vs low point of 38% in Q2 2013).
- Banks are fighting back to retain market share.
Return of the PE-backed IPO
Deloitte's PLC Advisory team's analysis of 40 recent PE IPOs, looks at levels of cash-out achievable, use of proceeds and other relevant considerations for private equity and management teams.
Our analysis reveals that the UK has witnessed a resurgence of IPO activity over the last 18 months, and in particular a large number of successful PE-backed flotations.
Highlights in the Private Equity Goes Public report:
- In the last 18 months there have been 40 IPOs of PE portfolio companies in London.
- Collectively these raised £1.7 billion.
- 41 different PE houses participated.
- An average of 59% of money raised went to the PE sponsor.
- The recent strength of the London IPO market coupled with a resurgence in PE-backed flotations means that an IPO could be a viable exit option for PE assets.
- Many PE houses have used an IPO as an alternative to a trade sale or secondary buy-out over the last 18 months. Whilst significant levels of cash-out for both private equity and management are achievable, usually a private equity backer must be comfortable with retaining a significant stake going forward.
- In order to achieve the best outcome from an IPO, a number of aspects around positioning the asset and running the correct process should be considered well in advance.
Challenges and triumphs for private businesses and entrepreneurs
Privately owned businesses are no longer stockpiling cash; they’re ready to invest. Fixing their sights on new horizons, they are plotting to achieve growth not only in the UK, but also through exploring new markets and expanding globally.
To take full advantage of more favourable market conditions, private companies and entrepreneurs may need to consider finding new ways to structure their business; shape their perception through social media and triumph over unseen competitors born from a digital revolution.
Taking the Pulse of the Angel Market
Adapting to the "new normal"
The global economy has undergone huge changes since the global financial crisis; and businesses of all sizes and in all sectors are having to adapt to the “new normal”.
Deloitte – Private Markets conducted their sixth annual survey of entrepreneurs, EntrepreneurshipUK: 2013/2014.
The results confirmed that the UK’s entrepreneurial sector is vibrant and actively seeking out opportunities to grow, but indicated that there are challenges in the marketplace which need to be overcome. More needs to be done to ensure these green shoots are given the opportunity to flourish.
Deloitte – Private Markets believe that businesses can and should lead a new era of wealth creation and that entrepreneurial spirit and private enterprise will be a key driver of recovery in the UK economy.
Angel investing has a key role to play in helping to drive the economy forward by supporting these entrepreneurs. Indeed, many angels either are or have been entrepreneurs.
Deloitte is therefore very pleased to have worked with the UKBAA to conduct a survey of the angel community and to ‘take the pulse in the angel market’.
We hope that this research provides insight into how businesses of all sizes can play their role in the recovery of the UK economy, and highlights areas where government policy can have the most impact.
For the owner of the business, or other stakeholders, the Deloitte team can help management optimise their outcome.
Listed Private Equity Cash Flow - LPEQ
Our latest LPEQ Deloitte Cash Flow Compass report shows that over the past two years, listed private equity companies and funds-of-funds have:
- Steadily increased investment in privately-held companies
- Boosted commitments to private equity funds.
Both these trends demonstrate the industry’s willingness to invest amid wider equity market jitters.
- Funds-of-funds have posted cash in-flows in eight of the past nine quarters.
- Corporate buyers have returned as major acquirers of private equity assets – with almost half of all exits in the year up to March 2012 going to trade buyers.
- Balance sheets have strengthened over the past two years with a coverage ratio of 3.5 times, compared with 2.1 times in Q1 2010.
- Listed private equity funds exposures have shifted away from the consumer discretionary and information technology sectors, and towards industrials and financials.