Private finance still available but at lower valuations

Private companies are doing everything they can to avoid down rounds, raising new equity at lower valuations than past deals, but can’t hold the line for much longer.

As equities fall into bear markets, valuations of once high-flying technology companies collapse and the new-issue market for initial public offerings goes into hibernation, there is one place where companies can still raise large amounts of money.

Jason Hutchings, head of the natural resources group and of the private markets financing team in EMEA at UBS, says: “We are optimistic about where the private placement markets go from here. Investors in private equity are being more discerning and doing a lot more due diligence.

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