PE Recap vs M&A
I just had an interview for an IBD internship this morning.
The interviewer mentioned the team focuses on Private Equity recaps rather than traditional M&A sellside / buyside advisory. This confused me as I thought a Private Equity recap was just another term for a minority stake M&A sellside / buyside advisory work?
I've tried googling but I'm not fully understanding the difference, could someone explain what a PE recap transaction is in simple terms and how this differs from traditional M&A? And how it differs from a minority stake M&A deal?
I.e. what's the difference between acting as M&A advisor to a company selling a 20% or a 70% stake to a PE fund VS a PE recap? or acting as buyside M&A advisor to a PE fund making a minority investment into a company VS a PE recap?