The Carry: Private Equity Insights (April 2023)

Welcome to The Carry: Private Equity Insights for April 2023.

The Carry is our Private Equity Insights is designed to keep you up-to-date with the latest trends and issues relevant to private equity.

In this update we put a spotlight on PE public-to-privates and rare case law on conduct during a sale process, as well as sharing the release of our Restructuring and Insolvency Guide and Initial Public Offering report.

PE public-to-privates – takeover when a target does not engage 

The use of takeover offers by private equity sponsors is the most significant recent development in public-to-private transactions. In this article we explore tactics private equity houses should understand, why takeover bids are being used, the benefits of a takeover bid and challenges with using a takeover bid.

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Cargill v Viterra – misleading conduct in a sale process 

In the recent decision of Cargill Australia Ltd v Viterra Malt Pty Ltd, the Supreme Court of Victoria considered how conduct (including silence) during a sale process may be misleading under s 18 of Australian Consumer Law. The decision is rare case law on Australian private M&A and an important development for private M&A transactors. In this article we explore the facts of the case and the decision, along with what it means for sellers and buyers.

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HSF Australian IPO report release

We have released our annual analysis of Australian IPOs for CY2022, titled ‘Changing Seasons: Australian IPO review 2022’. The report found that after a record-breaking 2021, the Australian IPO market slowed significantly in 2022, with less than half as many IPOs, and the volume of funds raised dropping from $13 billion in 2021 to just over $1 billion in 2022. It includes further numerical analysis of the Australian IPO market in 2022, finding that listings in the materials sector comprised the majority of IPOs and capital raised, with particular success for gold and lithium mining IPOs.

HSF is expecting some resurgence of IPOs in the second half due pent up demand and in the meantime more pre-IPO style raisings. The analysis also covers key tips for issuers in preparing to IPO, Australian regulatory developments, US securities updates and predictions for 2023.

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HSF Guide to Restructuring, Turnaround and Insolvency – Practical tips for tougher market conditions 

We have recently launched the 2023 edition of our Guide to Restructuring, Turnaround and Insolvency in Asia Pacific. The release of this guide is timely, given the economic conditions, which present both opportunities and challenges for private equity funds. In this article we share core principles relevant to navigating corporate financial distress situations.

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