Private equity pauses deals to triage investments

Private equity pauses deals to triage investments

Buyout executives say economic uncertainty unleashed by US tariffs has made pricing assets challenging

A Reckoning is Coming For the Private Equity Economy

Illustration by Daniel MedinaTwo weeks ago, we wrote about private equity firms using a “dividend recap” strategy to pay themselves special dividends.This occurs when companies owned by PE firms take out a huge loan and pay their investors with the loan proceeds, saddling the companies with high debt, but ensuring investors make their money no matter what.We focused on Clarios International, noting how susceptible to calamity such highly leverag…

Tariff-fuelled volatility killing private equity optimism as deal flows squeezed

In just three months, private equity markets’ initial optimism for a busier year has largely dissipated. Instead, the turmoil unleashed on global financial markets by US President Donald Trump’s “Liberation Day” tariffs is quashing activity in private equity (PE), particularly as billions of dollars worth in mergers and plans for initial public offerings (IPOs) are halted.

PE cools deal activity to focus on portfolio companies

Private equity firms are scaling back on new deals and redirecting their attention to managing existing portfolio companies, as market turbulence sparked by fresh US tariffs under Donald Trump makes asset pricing increasingly uncertain, according to a report by the Financial Times. The reports cites several senior buyout executives as highlighting the heightened risk of recession and volatile macro conditions as reasons for the slowdown. “There …

Morrison Foerster Continues Strategic Expansion of Its Global Private Equity M&A Team with Arrival of PE Lawyer James Lee in New York

Morrison Foerster, a leading global law firm, is pleased to announce the arrival of James Lee as a partner in the Private Equity Group, based in the New York office. Lee brings over two decades of experience representing private equity funds and their portfolio companies, in a wide range of complex domestic and cross-border transactions. […] Source

Private Equity Goes ‘risk Off’ As It Pauses Dealmaking - Data Intelligence

Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for Washington and the world Donald Trump’s tariffs are forcing private equity groups to pause their dealmaking and focus on managing their existing portfolio companies, in a stark reversal of earlier expectations for a boom in activity under the new administration. One buyout executive at a top US firm told the Financial Times that economic uncertain…