In a recent Bloomberg Law article, Preston Brewer and Grace Burnett dive into how private equity is optimizing this current downturn. At the start of the year, private equity groups had roughly $1.5 trillion of available capital for investment. Despite the current environment, year-to-date buyout volumes from PE groups is up 15% over 2019, with already over $100 billion in proposed, pending and completed deals.
The other area of renewed interest is coming from private investments in public equities or PIPEs. PIPEs give public companies in need of cash an alternative to traditional lending. PIPEs are more expensive and therefore a less favorable option except for periods of distress when traditional lending is harder to obtain or unavailable. “Recent PIPE deals have involved dining and entertainment restaurant chain Dave & Buster’s, online real estate services company Redfin, online car seller Carvanna, and payment company EVO.”
Read the Full Article Here: Bloomberg Law 2020 "How Is Private Equity Optimizing the Downturn"
