The global M&A market’s significant downturn in Q3, with multiple factors contributing to the decline in deal value, spurred a continuing search for liquidity among PE firms.
Extended interest rate uncertainty and limited access to debt, combined with geopolitical turmoil, pushed M&A expectations further down. While the number of deals remained relatively stable, the total deal value dropped to a decade-low point.
Private equity firms struggled to access debt, causing a shift in the market share from financial sponsors to corporate buyers. The median debt-to-enterprise value ratio also decreased, making debt a smaller part of leveraged buyouts.
Higher interest coverage ratios have stopped banks from lending as much for leveraged buyouts.
Liquid Capital is a game-changing, AI-first solution that will provide early and continuous liquidity to Venture and PE funds and greater access to accredited investors.
Learn more by joining our Beta at http://www.liquidcapital.ai Liquid Capital Revolutionizing Liquidity for Private Capital Markets #liquiditymatters #privateequity #wealthmanagement #blockchain #venturecapital