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Allens has just released its 2013 Private Equity Market Wrap, and what we saw last year
in PE was a real mixed year we think the private equity space for sponsors really gained momentum
as the year went along. I think there was a real uptick in exit activity from about
the middle of the year onwards through the Federal Election, and what really kicked off
was a few successful IPOs which then allowed PE sponsors to start running dual track processes
for their exits, we saw some great, you know great results and greater advantage it was
Virtus Health and others that listed last year. That activity also spurred on some trade
competition for assets so we saw on exits of private equity held assets real competition
from other PE funds and corporates for those assets and we saw auction processes heat up
towards the end of the year and some really, really good results for the PE firms. On the
acquisition side again wasn't as active as it was for the exits, there was a huge transaction
earlier in the year, TPG's buy out of Inghams which you know was probably the landmark deal
of the year in terms of acquisitions, although that didn't necessarily follow through, throughout
the course of the year.
And Mark what do you see as the major developments in private equity in 2014?
Yeah look in 2014 we think we'll continue to see good progress, in exits, I think many
of these funds bought their assets that they're looking to divest right now during the GFC
or just after GFC so they should you know produce some excellent results for the PE
firms. I think that should then hopefully spur on a better fundraising market that they'll
be able to go to market with great results and hopefully they can really rattle the can
and raise some good equity for their next funds. I think in terms of acquisitions we
think that the market you know still has the best potential in that mid market range, so
about the $50 mill to $200 million EV range we think that's where there will be most activity
this year, debt's still relatively cheap and easy to get so we think that will spur on
some activity through the course of 2014.
And Mark where can viewers go if they want to get some more information?
Viewers can access the Wrap on the Allens website, that's allens.com.au.
Thanks so much for joining us.
Thank you very much.