In this edition of the Paul, Weiss Private Equity Digest, we discuss key considerations for private equity transactions resulting from the new tax law. This is part one of a two-part article.
In market news, private equity fundraising and exits are down for the month of May as compared to April. Fundraising decreased from 22 funds closing in April to just 9 closed in May, with total dollars raised falling by more than half from $12.3 billion to $5.5 billion. Exits also decreased, although not as dramatically, however, still hitting a 12-month low overall and in corporate sales and secondary buyouts. M&A activity was more mixed, with the disclosed dollar volume of U.S. and global sponsor-related M&A deals increasing somewhat in May, after nearly doubling in April, but with the number of deals falling by nearly 16% in the U.S. and 2.9% globally.
