What are we looking forward to in 2014 in the USA?
Expectations for 2014 are positive, as firms in the private equity still maintain high levels of liquidity and the outlook for fund raising remains improving, which will generate the need to put money to work. In addition, a number of deals in excess of $1Bn have been announced and are expected to close during 2014 with several more in the auction process. Many of the deals expected in 2014 are expected to come from spin-offs of large corporations or stakes in financial institutions as a result of compliance with new regulations.
«At a general economic level in Spain, 2014 will be the first year of a slow but progressive recovery and, therefore, it will consolidate above all in 2015 and 2016. The Spanish economy has gained in competitiveness (increase in productivity, reduction in unit labour cost, increase in exports and reduction in imports...). For the Venture Capital, the years 2014 to 2016 should be very positive years, although for the number of transactions to grow strongly, credit needs to recover», comments Diego Gutierrez, an alternative financing expert from Abra Invest.
Money for growth and operational improvements
Growth equity deals or minority stakes have been popular in 2013, accounting for 23% of total deals. Private equity continues to focus on growing its portfolio of investees and, as a reflection of this, the number of private equity transactions in 2013 was buyout transactions as enlargement has increased accounting for 53% of total buyouts.
Other posts that may be of interest to you:
74% of venture capital and private equity deals in 2013 were targeted at SMEs.
FOnd-ICO Global and its impact on the future of venture capital
Private equity manages to increase divestments in 2013
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