Volatility means opportunity
2022 was a challenging year for Private Equity (PE) dealmakers. It was a year of two halves, where the optimism and favourable investment conditions that characterised the back-end of 2021 quickly gave way to market turmoil, geopolitical instability and economic conditions that few could have foreseen only a few months earlier.
Although we expect 2023 to remain choppy, particularly in the first half of the calendar year, the near-term uncertainty is likely to present considerable investment opportunities.
Our expectation is that PE investors will see through the short-term volatility by targeting high-quality assets that can capitalise on domestic and international trends. Businesses that can deliver on long-term investment objectives by benefiting from the transition to a low-carbon economy, widespread technology adoption and demographic shifts will be in high demand in 2023.
Despite some obvious headwinds, we are optimistic about activity levels for the year ahead.
How we can help
Assisting in every aspect of your investment strategy
Our highly regarded private equity team has significant experience advising global and domestic private equity sponsors across the investment lifecycle, from establishment, complex buyouts, distressed investments, minority stakes, bolt-on acquisitions, take-privates, leveraged and syndicated financing, through to eventual exit, whether that be through initial public offering or divestment.
We also work closely with clients to structure tax-efficient and regulatory-compliant investment vehicles, raise capital and manage portfolios.
Focused advisers to the private equity sector
We have a team of lawyers dedicated to advising private equity sponsors. Our multi-disciplinary team understands the motivations and strategies of sponsors, investors and financiers, and our deal management approach reflects this, ensuring efficient service, executed with precision and in accordance with your timetable. We understand business cycles and investor risks and bring real value in formulating innovative and commercial solutions to manage these risks and meet your investment needs.
Bench strength to manage the most complex transactions
In response to the higher entry‑level valuations for quality businesses, we are continuing to see sponsors turn their sights to ASX‑listed targets. Our market-leading experience in public company takeovers and schemes of arrangement has seen our team advise on some of the largest and most complex PE take-privates and consortium bids in Australian history.
Leveraged buyout deals often involve various layers of debt and complex inter-creditor issues. We work with financiers, borrowers/acquirers, agents and arrangers to develop innovative solutions. Having advised on the first unitranche loan in Australia, and since advised on the majority of such financings in the market, our clients can confidently navigate market terms, deal structures and ‘hot points’ which are often critical to the success of a bid.
In addition to our strong practice advising sponsors, we also have a strong investor practice enabling us to bring investor insights and a deeper understanding of investor needs to our work for you.