Driving growth with private equity | How do private equity investors create value? This is the second annual study on "How private equity investors create value" (pdf, 366.3kb) for the Australian private equity (PE) market, which this year has been expanded to include New Zealand. Given the economic landscape in 2008, our research focused on exits with enterprise value of over $25m (compared to $50m in 2007). In addition to gathering publicly available data on the exits, we have conducted face-to-face interviews with PE owners to check key facts and enhance the level of insight arising from the study. New Zealand private equity and venture capital monitor A record start to 2007 saw $1.1bn invested across 41 deals in the first six months (pdf, 789kb). This cooled slightly in the second half with $99m invested across 44 deals indicating a slow down in the large (LBO) market with no reported investment activity in this sector for the second half of 2007. The new financing environment Large LBOs may have dried up as a result of the credit crunch, but private equity firms are still cashed up and looking for deals. In the current market, private equity firms need to be creative in combining debt and equity structures to fund their investments. In this report Ernst & Young looks at the emergence of the Australian mezzanine debt market (pdf, 393kb) and the role it is likely to play in enabling deal flow. |
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