Category Archives: WEEKLY SPIN

One for all and four for one

BMO Global Asset Management has tapped in to in its inner Musketeer and created a new “four for one” fund vehicle with Partners Group. . The single vehicle will give high net worth investors easy access to four asset classes spanning private equity, private credit, real estate and infrastructure. It is believed that around 20% of the fund will remain in cash in order to provide sufficient liquidity for redemptions. It is yet another sign of the growing democratization of private markets, as asset managers look to broaden their investor base. This new “access all areas” fund will be the first of three simplified private market funds at BMO. And the fact that there will be no capital calls and low minimum investments means that we might start to see more of these “four for one” specials hitting the marketplace, and lead to an even bigger influx of investor capital.

inspired by CNW Group

CalPERS-pective on VC

Despite a less than Oscar-winning performance in its venture capital portfolio over the last 12 months, the California Public Employees’ Retirement System (CalPERS), plans on giving the asset class an even bigger lead role.. At present, VC only accounts for 1% ($758 million) of its $55 billion private equity portfolio. But having experienced a “lost decade” of extended bull market returns, CalPERS plans on rewriting the script by becoming an even bigger limited partner to VC funds. If that doesn’t pique the interest of the VC community as they embark on their next rounds of fundraising then nothing will.

inspired by CNBC

Vintage performance

As another successful French Open tennis tournament comes to an end, private equity investors are hoping that fund vintages in 2023 and 2024 will serve up a grand slam performance.. That seems to be the sentiment among LPs for North America and Europe, according to Coller Capital’s latest Global Private Equity Barometer. Special situation funds and mid-market funds were cited as offering the best shot for GPs to seek out good deal opportunities, as they look to take a break from large and mega buyout funds. The last 12 months or more have seen the markets, broadly, come under pressure but these latest findings do at least suggest that the latest private equity funds coming to market could find an advantage. Choosing the right strategies will be key for LPs as they look once again for private equity to deliver Game. Set. Match.

inspired by Coller Capital

From Bollywood to Boardroom

India could be in a position to become the region’s sparkling jewel as Asia’s largest private equity market as dealmakers watch US-Sino tensions continue to grow.. This led to a nine-year low in market share last year, with China accounting for only 31% of deal value. By contrast India’s market share rose to 23%. It is a little early to say that India will achieve Rupee-ted success. Still, with a combined $61.6 billion in PE/VC investment, the sub-continent showed it was resilient to wider global economic headwinds. And with a growing number of buyout players ready to deploy capital, there are signs India’s PE marketplace could heat up nicely; particularly in tech, healthcare and clean energy.

inspired by Financial News

All (Eco)systems Go!

Private market capital is beginning to make a healthy impact on the planet as it targets investments related to UN Sustainable Development Goals. According to a new report published by impact investment consultant, Phenix Capital, there has been a 55% increase in the number of funds focused on biodiversity, since 2017. In total, 523 fund managers have raised €207 billion, with real asset funds proving the most popular (by number): specifically Timberland & Forestry funds. The biggest investment, however, has been in venture and growth funds, attracting €47 billion. Zero Hunger (UN SDG2) is a key priority among investors, as well as Clean Water & Sanitation. Private equity is well placed to bloom, with 62% of biodiversity funds investing in the asset class. This is good news for private markets. Time to push biodiversity investment into hyperdrive!

inspired by Phenix Capital Group