The rapid increase of private equity firms in 2020 is expected to continue throughout 2021. Compared to last year, private equity has increased by 21.9% in the first five months, consequently leading to 2,346 deals. Private equity firms remarkably benefit from the prevailing market trend prompted by historically low-interest rates and record fundraising. Further, there is an increase in new funds established by private equity experienced experts from existing funds and thus translating to a rise in flexible capital.
Private equity firms are growing to be multi-faceted and incorporate asset management from different classes due to the competition they face from traditional private equity deals. For example, between 2015 and 2019, the most recognized United States alternative investment players increased 10% of the annual net new money of properties under management, while traditional asset managers experienced negative flows. Additionally, tax law uncertainties are expected to stimulate more deals as private equity founders look forward to locking in gains before increasing taxes regarding capital gains.
Gary McGaghey is a recognized private equity expert. He is acknowledged for his excellent results as a Chief Financial Officer in the information technology, media and pharma industry, among other industries. Historically, he is known for delivering increased shareholder value consequently from his leadership strengths and the experience he has gained in finance and business in diverse sectors. Gary McGaghey has worked for several companies, including Nelson & co. Ltd, Uniliver, Robertson food limited and Robertson Homecare limited. In all these companies, he was responsible for finance-related matters and significantly contributed to their rapid growth. Since he graduated from the University of Natal in 1989 with a bachelor in Commerce, Gary McGaghey has undertaken several postgraduate courses, including his master’s degree in commerce from the University of South Africa and non-executive Director Diploma.