Daily News: February 8, 2012

A&M’s Private Equity Services Experiences Record Growth in 2011


As demand for operationally oriented advisory and performance improvement services among investors has continued to grow, Alvarez & Marsal’s global Private Equity Services practice experienced record growth in 2011. Even amidst a year marked by ongoing volatility in private equity deal activity, the firm experienced a surge in demand, doubled its private equity engagements from the prior year, and expanded its team of professionals by 25% dedicated to serving private equity.

“Alvarez & Marsal has set the standard for a distinctive approach, built on an operational heritage that drives value for private equity and corporate clients at all stages of the investment lifecycle,” said Paul Aversano, global practice leader of the firm’s Transaction Advisory Group. “Our relentless focus on client service, coupled with our expansion into additional service offerings, such as divestiture services in the areas of vendor due diligence, general sell-side support and IPO readiness, led to record results in 2011.”

Nick Alvarez, a managing director in A&M’s Private Equity Services Operations Group, added: “A&M’s integrated diligence offering of financial accounting, tax, operational industry and market expertise has been the key driver of our private equity business globally. Also from a portfolio value enhancement perspective, as private equity firms hold investments longer than they have historically, they’re increasingly looking towards cost reduction programs and efficiency enhancements, as well as refocusing efforts on revenue growth strategies to drive value. That trend, combined with a growing number of funds eyeing exits of their investments in the short term, and nearly a trillion dollars of private equity purchasing power available due to the capital overhang, is going to continue driving demand for our services moving forward.”

“Similarly, we expect to see more operational-oriented work in the European market as funds compete globally to invest almost $400 billion in uninvested capital,” said Adrian Balcombe, practice leader of the firm’s European Transaction Advisory Group. “While the total value of private equity deals in Europe rose last year, this year poses new challenges as the Eurozone banking crisis persists amidst declining investor confidence.”