How private equity became a powerhouse

The fifth edition of Private Equity: A Transactional Analysis dazzles.

Edited by Chris Hale of Travers Smith LLP, this comprehensive guide brings together the insights of leading industry practitioners to demystify the intricate world of private equity. It not only explains the mechanics behind private equity, but also shows how it’s become a powerhouse in driving corporate deals.

The opening chapter sets the stage by highlighting the influence of private equity-backed companies across the UK and the US, revealing their significant presence in the mid-sized and large business sectors. The narrative emphasises that private equity is no longer just a niche market – its reach has expanded dramatically, even, as many readers will be aware, touching upon the legal sector in the UK.

For those new to private equity, the chapter on private equity structures is an essential read, offering clear explanations of key concepts through well-designed diagrams and concise analysis. It is not just an academic exercise; the authors provide a practical look into how these structures are applied in real-world transactions.

Critics who view private equity through the outdated lens of the 1980s ‘asset stripper’ stereotype will find this book refreshing. A dedicated chapter on environmental, social and governance (ESG) strategies explores how these considerations have become a fundamental part of private equity investment decisions. The analysis dives into the evolving regulatory landscape and how fund managers are adapting to integrate ESG criteria effectively.

The book’s scope extends beyond traditional private equity. Chapters on alternative investments and private capital markets – covering both debt and equity finance – add depth, making it an invaluable resource for professionals and those interested in private capital.

This book is a must for lawyers, corporate advisers, senior executives and investors involved in private equity transactions. It is equally suited for academics and students pursuing corporate law or business law, making it a well-rounded addition to any library.

The lack of an index to help navigate 563 pages of dense content is a notable shortfall. But overall, Private Equity: A Transactional Analysis is a compelling, informative, and thoroughly modern analysis that anyone involved in this dynamic field will find both insightful and indispensable.

Jeff Zindani is the managing director of Acquira Professional Services