International Comparative Legal Guide – Private Equity 2021

Dechert is the contributing editor to International Comparative Legal Guide - Private Equity 2021, now in its seventh edition. The publication is one of the most comprehensive comparative guides to private equity, serving as a valuable reference source for in-house counsel and international legal practitioners, with information on the legislative and regulatory framework relating to private equity. It covers common issues in private equity laws and regulations – including structuring matters, governance matters, and transaction terms in 26 jurisdictions.

Members of Dechert’s global private equity practice provide an overview of market trends and an industry outlook for 2022 and beyond, as well as the country chapters relating to the United States and United Kingdom.

2021 and Beyond: Private Equity Outlook for 2022

Introduction

In a year of unprecedented health crises and social upheaval, private equity firms and investors have had to adapt rapidly to sudden and ever-evolving economic conditions and cultural and political norms. With the global economy coming to an immediate and severe standstill at the onset of the COVID-19 pandemic, private equity fundraising and M&A activity halted in the spring of 2020. Almost as suddenly and surprisingly came a rebound in the second half of 2020, as pent-up demand sought new target assets. Private equity deal activity ultimately rose globally in 2020 compared to 2019 in terms of deal value, outpacing the overall M&A market rebound. This rebound has been continuing apace in 2021.

Read the full Dechert chapter “2021 and Beyond: Private Equity Outlook for 2022"

United States: Private Equity 2021

Overview

U.S. private equity deal activity faced turbulence in early 2020 as a result of the onset of the COVID-19 pandemic in the United States, with a dramatic slowdown experienced during Q2 2020, but deal activity rebounded strongly in the second half of 2020. Both deal volume and deal value for 2020 ultimately finished below the near record-setting levels observed in 2019, but the rapid recovery in activity through the end of the year generated significant optimism in the industry, and deal activity has since hit record levels in the first half of 2021. Commitments in respect of PE fundraising decreased during 2020 compared to 2019 but rebounded during the start of 2021.

Read the full chapter “United States: Private Equity 2021"

United Kingdom: Private Equity 2021

Overview

The most common types of private equity (PE) transactions in the UK centre around leveraged buyouts (in the form of share and asset acquisitions), take-private transactions, flotations and bolt-on transactions. Accompanying a majority of these trans- actions will also be the leveraged financing/refinancing of such deals from a variety of debt sources. Based on the British Venture Capital Association, the value of PE investments in the UK went up from £22.2 billion in FY 2017 to £25.1 billion in FY 2020. With the back- drop of Brexit and the uncertainty of the COVID-19 pandemic, the PE market fell away sharply during the latter part of H1 2020. 

Read the full chapter “United Kingdom: Private Equity 2021"

Access the full guide: International Comparative Legal Guide - Private Equity 2021

Dechert was also the contributing editor of the 2020 and 2019 International Comparative Legal Guide to Private Equity.

About Dechert

Dechert is a leading global law firm with 22 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.