Deal activity in an uncertain tax environment

The Wire

Jan. 28, 2021

D. Scott Mackesy of WCAS on remote dealmaking, Credit Suisse hires former PSP exec to lead direct lending origination

I’m hearing in preliminary conversations that 2021 could be ripe for exits -- as business owners weigh the threat of tax increases from the new administration, many will decide to take money off the table. That will create a strong pipeline of opportunities up and down the market for PE shops, but also, GPs will be looking for the exits.

“Many people believe legislation will be effective next year,” Citizens’ Kevin Burke told PE Hub when asked about the capital gains changes. “So, firms will accelerate execution of deals in the present tax environment.”

Read the full wire commentary on PE Hub.

That’s it for me! As always, don’t hesitate to reach me with questions and comments, tips n’ gossip, feedback or Scotch recommendations at cwitkowsky@buyoutsinsider.com, on find me on LinkedIn.

Note to Readers: It's that time of year ... for the 21st time, the editors of PE Hub and Buyouts honor exceptional buyouts with our Deal of the Year Awards.

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Go here for more information and to read about rules and methodology. Also check out past winners. Last year, New Mountain took the crown with its exit of Equian.

If you have additional questions, email Private Equity Editor Chris Witkowsky at cwitkowsky@buyoutsinsider.com.

Also of note (may require subscriptions)

Get it now: KKR is offering a first-close discount on its next US mega-fund, which is in market now. The firm also set a preferred return on the pool, something that it only instituted a few years ago. KKR one of the high-profile fundraisings to hit the market early this year. Check out the story for particulars on target and terms.