Asian Venture Capital Journal | 08 Sep 2010 | 16:28
Mezzanine’s role in Australia’s financing sector has grown in light of the economic crisis because, not only has it acted as an alternative to taking on senior debt – as banks became more stringent in their lending – but also to equity itself, says Gary Stead, Co-Founder and Managing Director of Shearwater Capital.
Stead tells AVCJ that Australia's shifting financing landscape has landed mezzanine with new bedfellows that it wouldn't have had to compete with in times past. "The alternative used to be senior debt. So the private equity funds would say, ‘do we really need to do mezzanine? Not really, because the banks will go an extra turn. They'll go to 6x; we'll push them to 6 1/2x. We don't really need this expensive mezzanine,'" Stead says. "The banks of today say, ‘we're at 3x; we're at 3 1/2x, take it or leave it,' and the private equity fund is then talking about writing an equity check for 40-45%. Then our capital becomes an alternative to equity, not to senior debt, and as an alternative to equity, I think we're good. We're cheaper."
Stead additionally looks at the challenges private equity players face in Australia, and the avenues they still have available to them in terms of borrowing capital.
Updating your subscription status
As investor's confidence in the domestic economy is restored, Taiwan's private equity sector players are anticipating a long-awaited upswing in activity, especially with a more transparent and open regulatory environment to revive growth. Positive signals from the government include the new M&A regulation, which will add on protection of minority shareholders upon its launch. The National Development Fund has also injected billions of cash into local funds in an effort to support industrial innovation.
20 November 2014, The Westin Hotel, Taipei
With the empathic and historic victory of Narendra Modi at the recent elections in India, the market confidence has improved significantly. Until recently, India was mentioned in financial markets only in a negative light given the enormous potential and lack of delivery. Difficulties in exiting, arbitrary taxation and poor governance are just some of the chronic problems deterring investors.
Discover what repercussions the latest political developments will have on the private equity industry, the outlook for the next wave of fundraising, where GPs expect to source exits and the best way forward for existing and potential investors.
2-3 December 2014, Taj Lands End Hotel, Mumbai