Goodwin Insights May 16, 2018

Private Equity Trends – 2018 Rollover Survey

Private equity investors and managers are increasingly faced with the challenges of structuring a deal to guarantee a successful outcome. Having a topical understanding of the nature of the middle market is therefore critical.

About the Survey

More than 55 private equity clients and prospects responded to our survey. Their compiled responses provide a high-level qualitative assessment of factors ancillary to transactions from performance vesting and time-based vesting, to characteristics of sponsor securities.

Trends We Observed

Relative to our 2015 survey, the size of required and actual rollovers has decreased. We hypothesize that this is a result of the continued robust debt market and higher valuations, which enable sellers to rollover a meaningful amount of capital even at a lower percentage.

How We Did It

We sent out the 2018 survey to our network of private equity clients. The survey questions covered a wide range of issues critical to understanding the overall approaches and trends in this space.

How It Can Be Helpful

Among other things, this survey can serve as a quick and efficient tool to determine and ensure that your position is within the realm of the market. Handling rollover and management incentive equity terms appropriately during a transaction can dictate the outcome for a private equity investor. Knowing how to structure win-win solutions and the unwritten rules and norms of the middle market are critical.

Click here to access the full 2018 Rollover and Incentive Equity Terms Middle Market Survey.