Not only does private equity have a pulse, that pulse is racing to get new deals done and raise more funds. That’s the word from a new survey of private equity executives released by EisnerAmper Intelligent Data, who contact private equity executives twice a year to obtain their views of their firms’ fund activity.
Of the 107 general partners at PE firms surveyed, most expect to see more acquisitions than exits in 2011 compared to last year. What’s more, with nearly $500 billion in “dry powder”, many partners are looking to invest in the business services industry (82%) or are targeting healthcare plays (81%), according to an article in The Wall Street Journal.
That means those with private equity job or investment banking experience in business services and healthcare could find promising opportunities in the year ahead. Those in real estate, retail, and biotech, less so, as GPs indicate only a 40% interest in those sectors.
Another fertile are: operational experience and due diligence. The survey revealed that most GPs are still spending the bulk of their time working with their existing portfolio companies, placing increased importance on due diligence of the managers’ performance at these companies. Other findings include:
– 83% of GPs anticipate an increased availability of debt financing in the remainder of the first half of 2011 and beyond;
– Limited partners are going to be scrutinizing private equity fund management and incentive fees and other fund expenses like never before;
– PE firms will be holding onto their portfolio companies for a longer period of time; hence the increasing importance of profitability enhancement of these companies.
You can read a summary of the EisnerAmper survey at their website.
What’s your take? Are things looking up at your PE firm? Are you noticing more private equity job opportunities in the market? Add your comments below.
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