Debevoise Releases 2023 Private Equity Midyear Outlook

NEW YORK, July 31, 2023 /PRNewswire/ -- Debevoise & Plimpton LLP announced today the release of its 2023 Private Equity Midyear Outlook, a helpful summary of the various forces shaping the industry and the strategies market participants are using during this dynamic time.

At the beginning of the year, we noted in our Private Equity Report: 2023 Outlook the considerable macroeconomic and geopolitical challenges facing private equity. As we pass the year's midpoint, those challenges continue to hang over the private equity industry like a stalled weather system, refusing to dissipate, as existing obstacles have solidified and new hurdles have emerged. While the crisis around the collapse of Silicon Valley Bank, First Republic Bank and Signature Bank was not protracted, it nonetheless compounded an already difficult liquidity environment. Fundraising remains highly competitive. The polarization around ESG in the United States has intensified, resulting in a patchwork of wildly different state legislation. The SEC continues to take aim at private fund practices, while in the EU, new regulations stand to complicate both fundraising and the M&A landscape. In this environment, caution rules the day for both sponsors and investors.

And yet, with creativity and persistence, deals are getting done. Lenders are adjusting their balance sheet exposures. Direct lending and co-investments, as well as innovative deal structures, help to fill the financing gaps caused by the pull-back in syndicated debt financings. Brand-name funds are weathering fundraising headwinds by offering incentives and flexibility with terms, while first-time managers are building track records by raising capital deal-by-deal. And through it all, bright spots have begun to appear. The U.S. IPO market is showing early signs of thawing. In Latin America, proactive monetary policy, the move toward nearshoring and a spate of welcomed governmental reforms give reason for optimism. And while investors continue their caution regarding China, other Asian markets such as Japan, Australia and India are showing healthy levels of activity.

The full report is available here.

About the Debevoise Private Equity Group

Debevoise is a trusted partner and legal advisor to a majority of the world's largest private equity firms, and has been a market leader in the Private Equity industry for over 40 years. The firm's Private Equity Group brings together the diverse skills and capabilities of more than 400 lawyers around the world from a multitude of practice areas, working together to advise our clients across the entire private equity life cycle. The Group's strong track record, leading-edge insights, deep bench and commitment to unified, agile teams are why, year after year, clients quoted in Chambers Global, Chambers USA, The Legal 500 and PEI cite Debevoise for our close-knit partnership, breadth of resources and relentless focus on results.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients' most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.

SOURCE Debevoise & Plimpton LLP