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The Wire Nov. 16, 2020
What to watch for in Biden's first 100 days, Sun Capital exits ClearChoice in $1.1bn-plus deal Good morning, hubsters!
While the final pieces of a Joe Biden presidency are still being put in place, key agenda issues of interest to private equity are starting to emerge.
In interviews with market players, PE Hub and Buyouts identified four areas that could be a focus of the new Administration’s first 100 days. PE investors are eager for action on covid-19 and economic stimulus and are fairly confident they will see this in the near term. Check out our full report.
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Also of note (may require subscriptions) Deal fees: Managers are charging broken deal fees to the fund less frequently than in previous years, data from a recent survey conducted by Private Funds CFO shows.
Tax exclusion: Some private equity funds could lose access to a tax benefit under final offshore income rules if the Treasury denies them a special carve-out, Bloomberg Tax writes.
Normalcy: Barron’s looks at whether the pace of M&A may remain unchanged under a Biden presidency.
PE Deals
They said it “It’s about predictability … Predictability allows PE buyers and sellers to better model growth and cash flows and that facilitates deal-making. If you combine that with continued access to large amounts of capital at low interest rates – and if we can get the pandemic under control – I’d expect a healthy deal environment.” Eric Siegel, a partner with law firm Dechert, speaks to Buyouts and PE Hub about the potential deal environment amid a narrowly split Congress.
Today's letter was prepared by Sarah Pringle. Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. FIND OUT MOREPlease visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.
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