PE Pros Talk Deal Pipeline
Investment opportunities abound for private equity firms heading into 2020.
The deal pipeline is “pretty full” for next year, said Vivianne Akriche, managing director at private equity firm Eurazeo SE, at The Deal Economy conference on Wednesday, Nov. 20, in New York City.
Akriche added that Eurazeo is seeing more and more opportunities where financial sponsors do not want to sell 100% of their stake and are looking for a small majority or a large minority investor to come in.
Ryan Hinkle, managing director at software-focused private equity and venture capital firm Insight Partners, described the New York firm’s pipeline as “robust.”
“There are so many ideas popping up,” Hinkle said. He noted that in the past, it cost about $15 million to get a software company off the ground. Now, it costs less than $300,000, he said, pointing to factors such as the advent of Amazon Web Services.
For his part, GTCR LLC vice president Christopher Smith said there’s a lot of activity and looking at 2020, “there’s quite a bit of assets we know will be coming to market.”
James Rosener, partner at law firm Pepper Hamilton LLP, said “there must be a big pipeline out there” based on the calls the firm is getting from clients.
Akriche, Hinkle, Smith and Rosener spoke at the Private Equity Dealflow panel moderated by The Deal’s senior private equity reporter Steve Gelsi.
2020 could be an interesting year given the election and the potential impact on market prices, Hinkle said.
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