As stocks fall into bear markets, valuations of once high-flying tech companies plummet, and the market for new issues for IPOs enters hibernation, there is a place where companies can still lift large sums of money.
Jason Hutchings, head of the natural resources group and private markets finance team for EMEA at UBS, said: “We are optimistic about the direction of the private equity markets from here. Private equity investors are more demanding and do a lot more due diligence. But there is still plenty of money looking to go to work and plenty of interest to issue.
The Hutchings-managed business does primary and secondary private placements, with the primary ones typically being Series B, C and D raises. The team works closely with family offices and ultra-high net worth investors whom UBS serves through intermediary of the private bank to put in relation the investors and the private companies in search of capital.
We are now seeing more requests from companies hoping to raise debt to postpone another capital raise that establishes a lower valuation
Vinod Vasan, UBS
Hutchings says of the company, “We’ve seen about $50 billion deployed so far this year at about the same rate as 2021, which was a breakthrough year with nearly $120 billion in private capital raised in Europe.”