pe-analyst

Carl Thoma on Private Equity in 2012 and His Outlook for 2013

Carl Thoma, managing partner, Thoma Bravo 

Carl Thoma 
 
Looking back, how would you characterize 2012? 2012 was a decent year for private equity. The economy was alright, but growth was dampened by uncertainty. The credit markets were excellent, which helped financing for deal flow. The prospect of tax increases encouraged deal flow, but buyers were disciplined in their purchases because of the uncertainty in the economy and in Washington. What is the most important issue that the private equity industry faces in 2013? Washington will continue to be the most significant issue for the private equity industry in 2013. The fiscal cliff, large deficit and tax increases could all hurt economic growth and tighten debt availability. Uncertainty is hindering businesses from operating as they should be and also makes it challenging to get deals done.What is your New Year’s wish for the industry in 2013? I would like to see issues in Washington get resolved in such a way as to not spook the equity and debt markets and be a foundation for economic growth. Resolving these issues in Washington will bring back the certainty needed for businesses to execute growth strategies with capital expenditure and hiring.If you had to predict one headline involving the private equity industry in 2013, what would it be? “Private Equity Continues to Be a Superior Asset Class and Can Handle Uncertainty Better Than Public Markets.”