Private Equity Outlook: Carveouts on the Rise as Fundraising Slows
As dealmakers look to innovate their origination process, we anticipate a continued rise in take-privates and corporate divestitures.
Amid a prolonged period of elevated pricing, PE dealmakers are exploring innovative ways to source deals and partner with other investors. One of the more interesting announced deals that highlights this new dynamic is Blackstone’s announced $17 billion buyout of Thomson Reuters’ financial and risk business. Public-to-private deals have increased for four consecutive years, and we think that corporate carveouts and divestitures will be the next trend in deal sourcing.