Gary McGaghey on Private Equity Deals in 2021

The first half of 2021 witnessed an increase of around 22% compared to last year. It will be safe to say that momentum will continue this year and in the future. Private equity (PE) firms stand at an all-time high. In addition, PE firms seem to gear up to diversify in a variety of resources.
Gary McGaghey is a globally experienced private equity and CFO at Williams Lea Tag. He has an extraordinary track record in transformation and value creation. Through his varied work experience, Gary has mastered public equity, which has been instrumental in many PE firms. It is purely due to the low rate of interest and fund-raising benefits for PE firms.
According to Gary McGaghey, SPAC (Special Purpose Acquisition Companies) have challenged private equity companies to match their equivalent or beat it. The rise of SPAC companies has created many challenges for PE companies. In addition, private equities are becoming less lucrative, and many are looking for exit options like traditional IPOs.
The insurance arena is getting heated up due to two main reasons. Firstly, private equity can generate higher returns on assets due to risk alteration. Hence, it will help insurers gain higher returns. Secondly, AUM provides a source of permanent capital with additional fee income. As per the published reports, people should also be prepared for tax law changes as PE expressions favor increased capital gains.
Gary McGaghey affirms his belief in the power of Governance, social and environmental. It helps in the growth of PE companies and provides substantial success in long-term asset creation. Gary McGaghey further suggests that private equity companies must start adopting initiatives in the environment to make investors believe in their commitment and accountability. In addition, private equity firms must include a panel of experts analyzing targets along with ESG risks. Moreover, PE firms and experts should develop techniques of enhanced training for investment teams with ESG diligence.