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Mergermarket / Ion Analytics talks to Michael Fieweger about the changing regulatory environment for private equity | Newsroom

Michael Fieweger, Chair of Baker McKenzie’s North America Private Equity Practice, was interviewed during the recent Ion Analytics Influencers Fireside Chat where he shared his insights on the current state of the private equity industry.

In the wake of seismic changes in economic conditions and massively increased regulatory burdens, the private equity industry is facing unprecedented challenges. According to Michael, “even more changes have occurred in private equity markets and the regulatory regimes affecting them than…probably at any time since the 2010 financial crisis.”

Change and uncertainty have brought trading activity to a standstill for the last eighteen months. As markets begin to stabilize, particularly in terms of interest rates, companies adjust and become optimistic. Due to the need to trade, the need to exit and the need to put dry powder to work, Michael says his clients now want to get back to trading. Moreover, he sees “optimism that corporate buyers and sellers will return to the market (which will create) a bit more inventory,” which is necessary for a recovery in activity to occur.

As dealmaking returns, Michael expects these efforts will be subject to increased regulatory scrutiny, particularly related to fund-level regulations, dealmaking processes (including reviews of antitrust and foreign direct investment laws), and regulations affecting portfolio company operations. Despite these obstacles, Michael believes that with a proactive approach to regulatory compliance, as well as strategic foresight and a willingness to adapt, successful transactions can be achieved even in today’s environment.

Watch the full interview Here.