Meme - Supersize PE

Family Fortunes

News, WEEKLY SPIN

North American family offices have shrunk their allocation to public equities in favor of private markets, as they look to preserve their inter-generational family fortunes. A new survey conducted by Campden Wealth and RBC reveals that their overall exposure to private equity, private credit and venture capital has risen to 29.2% compared to 28.5% for stocks; down from 31% last year. The role reversal is noteworthy given that US stock markets have delivered a star performance (the Nasdaq 100 is up 45.8% YTD). It shows the allure that private markets hold, as investors look for a wider selection of ‘equity’ options. As families move office, it’ll be interesting to see how much further they embrace this change in their overall portfolios.

inspired by CNBC

GIF - The hottest ticket in town (if you’re a private credit investor that is) (online-video-cutter.com)

All that glitters is gold

News, WEEKLY SPIN

Asset-backed finance and life sciences direct lending are just two branches of growth within private credit, as leading firms such as Oaktree Capital Management look to tap in to a golden period for the asset class; one that has grown to $1.5 trillion. As banks retrench, it is creating dislocation opportunities for savvy investors in shipping, aviation and manufacturing equipment; potentially offering a golden ticket to support transport operators. Unfortunately, there were no chocolate factories available at the time of writing. Lending to life science companies is also an investment theme according to Armen Panossian, who will become Oaktree’s co-CEO in the New Year. As we enter the festive season, private credit investors have plenty to celebrate. The search for the next golden ticket is on!

inspired by Pensions & Investments

IPEM Cannes 2024 IPEM Cannes 2024 - The 10th Edition is set to focus on 'Getting Deals Done'

IPEM Cannes 2024 – The 10th Edition is set to focus on ‘Getting Deals Done’

CANNES 2024, News, PAST EVENTS

Cannes 2024 promises to be a unique occasion as IPEM celebrates the 10th edition of its private markets event. Delegates will have the chance to gather at the Grand Opening Party, a special pre-event cocktail, on January 23rd, to kick off the three-day event in style. Approximately 3,000 delegates are expected, including 400 GPs, 400 LPs, and over 1,000 investment firms.

Meme - Wise decision trusting you on that latest deal

Trust fund

News, WEEKLY SPIN

Lower middle-market GPs are offering co-investments for individual deals to solidify trust with investors. It is not a new tactic but snuggling up to get a closer understanding of how GPs diligence companies and approach deals, is a good litmus test before investing in future funds. Especially in today’s challenging fundraising environment where some managers may feel that securing new investors is like getting blood out of a stone. As Pitchbook reveals, 86% of co-investment deals this year are less than $500 million in size; for managers at the lower end of the market, securing stakes in good companies with established investors is a great way to ‘Come together, right now, over me.’ Investing deal by deal could yet prove to be the ideal path to future fundraising success.

inspired by Pitchbook

Meme - Let’s hope we can juice the returns in Fund VIII

PAI in the sky

News, WEEKLY SPIN

Paris-based PE firm, PAI Partners, has squeezed out an impressive EUR7.1 billion from investors for its eighth buyout fund, exceeding its EUR7 billion target when it began fundraising at the start of last year. Investors have responded positively to PAI’s focus on acquiring businesses through complex carve-outs. The first one being Tropicana Brands, a juicy $3.3 billion deal that it acquired from PepsiCo two years ago. Existing investors account for around EUR2 billion of the assets raised…will this latest fund prove to be the eighth wonder of the world? While GPs are being squeezed on valuations – the average global buyout deal was 12.9x EBITDA last year – the new fund will allow PAI Partners to continue to seek out businesses, which, over the last decade, have come in at 11 to 11.5x on average. All in all, a pretty good PAI day for the firm.

inspired by the Wall Street Journal