The latest Global M&A and Debt Market Outlook survey of US and European executives and advisers found 64% of respondents predicting an increase in corporate defaults. Seventy percent expected such a rise in the
Meanwhile, more than half (52%) of those polled thought sovereign funds would play a bigger part in global M&A.
The findings come with a number of major firms targeting such clients. Allen & Overy (A&O) has created a specialist sovereign funds group across its European, US and Middle Eastern offices, while magic circle rival Clifford Chance has established an informal cross-practice group designed to identify opportunities in the sector.
Regular Freshfields Bruckhaus Deringer client Dubai International Capital has been among the most active of the funds, while other coveted clients include the Abu Dhabi Investment Authority and the Government of Singapore Investment Corporation.
A&O corporate head Richard Cranfield commented: “We’re seeing a lot of interest [from sovereign funds] and the market favours them. These funds spread money on a wider basis with no particular focus.”
Reed Smith Richards Butler corporate partner David Boutcher suggested smaller deals requiring no outside funding would be the order of the day for the year ahead.
He said: “As companies are getting into difficult times and going under, there will be more activity. The global economy has developed but there is a recession in the
