In The News
Jake Bullen Comments to National Post on Private Equity in Canada
Published: 09/22/2010
Jake Bullen was quoted in "Private Equity Regains Some Lost Ground," an article which appeared in the National Post on September 22, 2010.
Jake observed that the private equity industry in Canada is in a transitional phase due to the economic malaise over the last two years.
He said while it's good news the debt markets are indeed opening up, there remains a significant lack of product. "The irony is, while people have been complaining for a couple of years now about the lack of debt available to finance deals, I am hearing from my contacts in Canada and in the US that debt is there; and from my US clients, I am hearing that debt is cheap. But what is not there is good product," said Mr. Bullen. "So the lenders aren't finding the companies that they're comfortable lending to."
Based on his experience working with a range of clients as a member of the firm's private equity group, he has seen a surprisingly few M&As in the private equity sector. He observed that some large limited partners are creating their own direct investment teams, eliminating the need for an independent private equity firm."
"In my opinion, the good news is that there are still many great companies in Canada that have been smart over the past 24 months and built up their balance sheets and normalized their cost structures," he said.
He added that over the past few months, he has had inquiries by many US private equity firms seeking to enter the Canadian market. "I think this is an interesting trend we're seeing here, and I think we're going to see a couple of US equity firms become more permanent," he said.
Jason (Jake) is a partner in the firm's Business Law Group, with an emphasis on mergers and acquisitions, public and private financings and corporate re-organizations. |
