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Private Equity Executives Survey - Fall 2011 - Executive Summary: Key Survey Findings

The Pulse of Private Equity - Fall 2011

EisnerAmper Intelligent Data (EisnerAmper ID) surveys private equity executives twice a year to obtain their views of their firms’ fund activity. Survey respondents shared their insight on the outlook for market trends for the second half of 2011 (2H 2011). Our findings can be summarized as follows: 

PE Firms are More Sober About the Potential for Transactions. Private equity firms’ projected activity for new acquisitions and their outlook for fundraising is stagnant. Sales or dispositions are projected to be lower for the second half of 2011. Competitive bidding activity is lower reinforcing their view that other PE firms are slowing down as well.

Debt Financing is Again an Issue. In our Spring 2011 report, PE executives reported an increase in debt financing availability with significant expectations for improvement. Now they project status quo and some cooling down. No significant increase is anticipated in the short term.

Who Would Think LPs Could Further Increase Their Scrutiny of GPs? Each quarter has brought increased scrutiny by Limited Partners on their fund executive teams. Private equity executives see an increased interest by LPs in fund teams, management fees and fair value.

Private Equity’s Focus on Operations. With PE firms focused on adding value to their portfolio companies, they are adding more operational resources and using the efforts and time of fund executives more than ever before. Funds are adding value to the holdings by addressing their corporate strategies, revenue growth and human capital, as well as financial management.

Employment Growth Projected. The private equity executives noted a significant increase in the desire to hire now vs. earlier in the year. The hiring trend now includes more operational and compliance professionals in addition to their primary hiring of research/analysis and financial professionals.

Fall 2011

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