Private equity players are in for some stiff competition this year, as large-cap PE shops invade the middle-market space, according to a report from PE stalwart Bain & Co.
The company’s Global PE Report details a huge “exit overhang” – more aptly deemed an “exit hangover” by PE Hub’s Jonathan Marino – as PE-backed companies seek exits.
And the mega-deals of the past 10 years or so are a thing of the past, according the report, as detailed by Marino.
Sign up to get our free newsletters delivered straight to your inbox
Add to that what PE pros call “overhang” – the amount of un-invested capital gathering dust in PE shops’ coffers – and the picture gets a bit dark for the mower- and middle-market shops. There’s an estimated $400 billion overhang in North America alone, according to Marino.
“Hugh MacArthur, head of Bain & Co.’s private equity consulting practice, said he anticipates [general partners] will feel the pressure to deal assets soon – if not now,” Marino writes. “[Limited partners] mostly say they’re not looking to allocate a whole lot more to private equity, either. The fundraising environment is expected to be fiercely competitive. And global buyout deal volume is a long way away from what it used to once be.”
EndoChoice buys Interactive Optics
EndoChoice said acquired endoscope repair firm Interactive Optics of Nashville for an undisclosed amount. Read more
NantWorks buys Boston Life Labs
NantWorks acquired wireless health remote monitoring company Boston Life Labs for an undisclosed amount last week. Read more
GPOs: Health Robotics in pact with Premier
Health Robotics won an exclusive, 3-year sole-source contract for its IV Robots from Premier Healthcare Alliance. Read more