Duane Morris LLP Releases Connections in the Middle Market -- 2012-2013 Private Equity Annual Review

Featuring Global Private Equity Leader, The Riverside Company

Apr 30, 2013, 08:30 ET from Duane Morris LLP

PHILADELPHIA, April 30, 2013 /PRNewswire-USNewswire/ -- Duane Morris LLP, an international law firm known for its prominent role in the worldwide private equity market, today issued Connections in the Middle Market—2012–2013 Private Equity Annual Review, the sixth edition in its Connections publications on the state of global middle-market private equity. The magazine features extensive analysis and interviews with global private equity firm The Riverside Company and focuses on the middle market, which is among the firm's strengths. Through interviews with many of Riverside's senior leaders, balanced with the views of University of Chicago Professor Steven Kaplan, the new Duane Morris publication explores the state and direction of global private equity.

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George Nemphos, chair of Duane Morris' international Corporate Practice Group and co-head of its Private Equity subgroup, said: "After a relatively slow first quarter, we are seeing increasing transaction activity, and the evidence is here in our unique publication to support this positive outlook."

Connections in the Middle Market—2012–2013 Private Equity Annual Review notes particular growth in the middle-market arena, where both Riverside and Duane Morris focus the bulk of their activities. Growth in the middle-market sector is being fueled by a variety of sources, including increased LP commitments and most notably by sovereign wealth funds. These comprise a growing part of the private equity funds and world's investment portfolios, according to Connections.

The magazine quotes Riverside Co-CEO Bela Szigethy as saying that some funds and private equity ventures will fail as the cream rises to the top. "[T]he winnowing process is needed, necessary and natural at this point in the evolution of the industry," Szigethy says. Riverside Co-CEO Stewart Kohl adds that the days of "two guys and a dog or three gals and a secretary with a shingle were a fine format when we started," 'but given the growth, complexity and real-time response needed in global opportunities,' "it's really not a great format today."

"We are now three years out from the worst of the economic decline," said Richard Jaffe, co-head of the Duane Morris Private Equity subgroup, and a contributor to the Connections guide. "Private Equity funds and lenders have moved cautiously and prudently, and that is reflected in a slower-than-usual rebound from the recession. But it looks as if we are now collectively on firmer footing, with more deals beginning to come to market. We think our research shows that there is a widening path to greater deal flow."

Piero Carbone, leader of Duane Morris' European private equity arm, based in London, added that further opportunities are unfolding abroad, particularly in countries rebounding from the worst days of 2008–2009. "The naysayers may have thought they would never see another sunny day," Carbone said. "But Europe and points east are going to surprise a lot of investors who have compacted their world view. Our thoughtful work on the magazine demonstrates that there is a lot of opportunity."

The release of the latest Connections publication comes just prior to Duane Morris' private equity event, "Inside the Mind of the Limited Partner." The inaugural trans-Atlantic simulcast, originating in New York and London on May 8, will provide an inside look at the drivers of LP investing strategies in middle-market private equity on both sides of the Atlantic. Press is welcome to attend and may R.S.V.P. to Joshua Peck at JPeck@duanemorris.com. The event begins at 11:30 a.m. in New York and 4:30 p.m. in London.

About The Riverside Company

The Riverside Company is one of the largest and oldest global private equity firms investing in companies with enterprise values of less than $250 million. Riverside nurtures companies, with the goal of building them into more effective enterprises through time-tested management techniques, organic growth and add-on acquisitions. The global private equity firm has completed more than 300 acquisitions, holds more than $3.5 billion in assets under management and employs more than 200 people in offices across four continents.

About Duane Morris

Duane Morris LLP, a global law firm with more than 700 attorneys in offices across the United States and around the world, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges. With experienced private equity lawyers across our global platform, coupled with the deep capabilities of more than 700 lawyers across all practices, Duane Morris offers the resources to optimize transactional value for sellers and buyers; advise LPs and GPs on formation of funds and other investment structures; counsel LPs in co-investing and direct investment activities; and support portfolio company operations. Our PE Forums and Connections publications contribute to the thought leadership of the industry. Given the firm's strategic focus on the PE space, broad experience in major industry sectors and an innovative culture deeply committed to client service, its lawyers are regularly called upon to work with the most sophisticated and demanding players in the private equity marketplace. Duane Morris is an Official Sponsor of Growth of the Association for Corporate Growth (ACG).

SOURCE Duane Morris LLP