Debevoise Releases 2022 Private Equity Midyear Review and Outlook

NEW YORK, Aug. 1, 2022 /PRNewswire/ -- Debevoise & Plimpton LLP announced today the release of its 2022 Private Equity Midyear Review and Outlook, a helpful reference on the remarkable array of market and regulatory changes currently underway.

In the second half of the year, geopolitical and economic uncertainties persist, and markets around the globe have slowed accordingly. While private equity fundraising and M&A activity levels remained generally strong in the first half of the year (although comparatively weaker than 2021), the macroeconomic environment, market volatility and heightened regulatory oversight present challenges to which the private equity industry will need to adapt.

The report notes that we may see increasing competition in fundraising in the second half of the year, as the demand by sponsors for capital continues to be strong, as well as increasing use of bespoke structures that are tailored to investors' needs and of warehousing vehicles as alternative sources of capital. Meanwhile, as overall M&A activity slows, it is anticipated that continuation funds and fund-to-fund transactions will remain popular. More generally, parties are expected to deploy more creativity in structuring and bridging valuation gaps to get deals over the finish line, including in the secondaries market as well as M&A and leveraged finance transactions.

Changes also continue to unfold on the regulatory front worldwide, creating additional compliance obligations for sponsors and impacting execution of transactions. Debevoise has previously reported about heightened scrutiny by U.S. antitrust regulators on the private equity industry (see FTC Sharpens Focus on Private Equity and Navigating the Dynamic World of Antitrust Divestitures). In addition, as interest in socially responsible business practices and investment strengthens, regulators in the United States, the UK and the European Union have either published or already put into effect ESG-related disclosure proposals.

Debevoise is a trusted partner and legal advisor to a majority of the world's largest private equity firms, and has been a market leader in the Private Equity industry for over 40 years. The firm's Private Equity Group brings together the diverse skills and capabilities of more than 400 lawyers around the world from a multitude of practice areas, working together to advise our clients across the entire private equity life cycle. The Group's strong track record, leading-edge insights, deep bench and commitment to unified, agile teams are why, year after year, clients quoted in Chambers Global, Chambers USA, The Legal 500 and PEI cite Debevoise for our close-knit partnership, breadth of resources and relentless focus on results.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients' most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.

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SOURCE Debevoise & Plimpton LLP