The Private Equity Group at Cavendish was established to bring focus to what is now a very important part of the global M&A landscape.
After the US, the UK’s private equity industry is the second biggest globally (and is actually bigger than the rest of Europe combined!) and now accounts for significant UK economic activity backing some of the highest growth and most successful companies in the country.
In recent years, post economic crisis, the private equity industry has resumed very strong growth with record levels of new funds being raised across for mid-market investment. With huge amounts of capital to deploy private equity funds are competing hard to invest in and buy businesses, often creating significant competitive heat, driving up valuations.
At Cavendish our focus is on the mid-market where there is very fertile ground for companies seeking a private equity solution. Our clients, business owners, have often been approached by mid-market PE firms who try and identify companies with the right characteristics for investment. Increasingly for the right high growth companies the investors can be US growth capital investors who sometimes have a more global view on a company’s growth potential and will therefore place a higher value on the business than UK investors.
As the PE landscape has become increasingly competitive more attractive investment structures have become available so our role as advisors is to select the right investment partner and ensure favorable investment terms and structure for a client business.