In brief
With dealmakers taking full advantage of highly accessible financing and a massive hoard of dry powder to close more buyouts than before, 2018 was one of the most active years ever for private equity in Australia. The mountain of dry powder competing for limited opportunities, combined with elevated EV/EBITDA multiples across many sectors, resulted in PE sponsors becoming increasingly creative and flexible in their capital deployment strategies. In response to the higher entry‑level valuations for quality businesses, buyside activity saw increased levels of public‑to‑private transactions, as cashed‑up general partners turned their sights to ASX‑listed targets trading at reasonable or attractive valuations. The private equity team at Allens reports on some key trends and sectors to look out for.