John Reiss Of White & Case, On Dodd-Frank Repeal, The PE Market, And Whether We're In An M&A Bubble

John Reiss Of White & Case, On Dodd-Frank Repeal, The PE Market, And Whether We're In An M&A Bubble

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Chamber Member News Post Date: 08/11/17 Source: Forbes By: David J. Parnell
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Summary

Competition for private money continues to build in 2017, giving rise to shadow capital and a fund-raising treadmill, of sorts, that GPs have found themselves on. And as China’s outbound foreign direct investment cools down and Brexit negotiations heat up, the domestic M&A and private equity markets can’t help but be caught in the middle. Below I speak with John Reiss, Global Head of White & Case's Mergers & Acquisitions Group, about major shifts in the industry, the evolving relationship between private equity funds and their attorneys, a possible Dodd-Frank repeal, whether we are in an M&A bubble, China’s outbound investment, Brexit, and more. Please see a condensed and edited (for readability) version of our conversation below:

On the Top Shifts in the Private Equity Market:

Parnell: Let’s start at the beginning and just talk about the top one or two material shifts in private equity (PE) over the last handful of years.

Reiss: The PE industry is a very successful industry, and like all successful industries it evolves over time in many different ways. But in large measure the changes are responsive to market conditions, are evolutionary in nature and tend to be on the margin, rather than revolutionary.

Changes are primarily being driven by competition, essentially competition for money and competition for targets. The PE industry right now is a hugely popular asset class. It’s increasingly favored as compared to hedge funds. Overall, there are huge flows of money potentially available to the industry, and those huge flows of money are driving the changes that we see. At the same time, limited partnerships (LPs) are also becoming more active and aggressive. Read Full Article