Private Equity Sales Could Recover Under Trump's Second Term
Private equity firms could see a resurgence in the sale of their investments during Donald Trump's potential second term as president, according to Mark Benedetti, executive president of buyout firm Ardian.
Benedetti notes that many groups have been holding back on selling their assets due to uncertainty surrounding the U.S. election. However, with the election behind them, these groups are now preparing to bring their investments to market.
While Benedetti acknowledges that the exit pace may not reach the levels seen in 2021, he believes it could return to the pre-pandemic levels observed in 2018 and 2019.
The downturn in dealmaking has contributed to record transaction volumes in the private equity secondary market, where firms can sell their investments to other funds rather than through traditional methods. Ardian recently closed a $30 billion fund, which is the largest secondary fund ever raised.
In the technology sector, Trump's election has similarly reinvigorated deals, according to Bejul Somaia, a partner at Lightspeed Venture Partners. Somaia reports that three companies have signed term sheets for acquisitions by U.S. strategics, with valuations ranging from $1.5 billion to $3 billion.