Good morning, Nina Lindholm here with the Europe Wire from the London newsroom.
Mounting pressure around liquidity has made private equity exits a hot topic. This morning, we delve into troubling figures around exit multiples, with the help of a report by MSCI Private Capital. We also glance at a fresh report by Invest Europe on private equity activity in 2024, focusing on divestments.
Next up, we look at a take-private in the works. TA Associates has reached an agreement with a UK-based software company.
Exit woes
Private equity dealmakers had been hopeful that 2025 would be the year that the exit market opened up. Sources have also told us that sellers were willing to suffer lower MOICs in order to return liquidity to LPs. But new data from MSCI Private Capital suggests that GPs were already lowering their exit expectations.
To read my takeaways from the report, including what exit multiples averaged at in the last couple of years, as well as a look at Invest Europe's new PE activity report, check out the premium Wire.
What are your thoughts on the exit market? Get in touch with me at nina.l@pei.group.
Speed of data
Moving from exits to a take-private bid. TA Associates, a Boston-based private equity firm, has made an offer for UK software company FD Technologies.
For more on the offer, including the valuation, take a look at the full Wire coverage.
Software businesses’ possible resilience amid current tariff uncertainty was a topic earlier this week. Sascha Pfeiffer, managing director and global head of technology at investment bank Houlihan Lokey, spoke with PE Hub about how tariffs are affecting tech M&A.
Affiliate titles Private Funds CFO and Buyouts also discussed software and tariffs with Kim Furlong, chief executive officer of the Canadian Venture Capital & Private Equity Association, who delved into the nuances of the market.
For more on take-private transactions involving enterprise software, check out my colleague Rafael Canton’s piece on the topic.
That’s all from me. Keep and eye out for the US Wire later today, written by Michael Schoeck. Irien Joseph is on Europe duty tomorrow as usual.
Cheers,
Nina
Read the full Wire commentary on PE Hub ...
