EQUITY: Private Equity Lurches
Months after the public markets shut down for issuers, some private equity (PE) shops say they are seeing a generalized decline in activity.
Selective distress in the corporate sector has done little
for valuations, and buyers of all kinds strategic
M&A and financial sponsors are wary of quality and
unsure about timing acquisitions. Shuttered debt markets have
meanwhile laid dormant Brazils budding LBO trend, which
started in 2006 with the availability of cheap local and cross
border bank debt.
Things have quieted down a lot on our end, Antonio
Bonchristiano, co-CEO of GP Investments tells LatinFinance,
referring to new acquisitions. He says his shop has been
looking at select distressed situations in Brazil, but few look
attractive. GP was heard assessing SantelisaVale with measured
interest. Louis Dreyfus won negotiation rights with the
debt-laden sugar producer and an announcement has yet to be
Among barriers to new acquisitions is a significant divergence
in valuation expectations. Theres a big valuation
gap, says Bonchristiano. The investor acknowledges
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