S&P Sees Signs of Recovery in Private Equity
Standard & Poor’s Market, Credit, and Risk Strategies group sees signs of recovery in private equity.
“Last year, financial sponsors endured a contraction in deal making from prior-year levels, a rise in the number of portfolio companies seeking protection from creditor claims, and a collapse in the share price of many publicly traded funds, ” S&P says.
Now, by contrast, the environment is showing signs that the worst might be behind it.
“For example, two publicly traded financial sponsor firms—Blackstone and Fortress Investment Group LLC—recently reported better-than-expected financial results.”
“In addition, deal making has begun to stir. Last week, Kohlberg Kravis Roberts & Co. signed an agreement to acquire South Korea-based Oriental Brewery Co. Ltd. from Anheuser-Busch InBev for $1.8 billion. That announced transaction is one of the largest private-equity acquisitions by a U.S. financial sponsor so far this year. Also, several firms—including WL Ross & Co., The Carlyle Group, and Blackstone—are looking to make a bid for Florida-based thrift BankUnited Financial, which is under a fast-approaching deadline by the FDIC to receive bids to recapitalize the company.”
S&P provides a breakdown of the top-performing financial sponsor-owned firms’ debt issues since the start of the second quarter here.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
