New competitors drive PE dry powder

Author: Lizzie Meager | Published: 22 Jan 2016
Fabrizio Carpanini,
Dorsey & Whitney

Intense competition in the European private equity (PE) world is reshaping the structure of M&A deals. Excess liquidity in the form of cheap and generous debt terms combined with large amounts of dry powder is driving aggressive activity not seen since before 2008.

Another driver is an increasingly fragmented market, despite the prediction some six years ago that a dramatic consolidation was soon to come. 

Alternative direct investing funds - including single family, boutique and sovereign wealth funds from across North America and Asia - have permeated the European landscape in search of the best deals, according to Fabrizio Carpanini, head of European private equity at Dorsey & Whitney.

“That consolidation never materialised because general partners had too much vested in the...