Tiger Global has endured a sharp decline in 2022, wiping out 2020’s gains, as US technology companies fall prey to investor inflation fears. The hedge fund’s exposure to private companies has further compounded its losses, which will prove tough to claw back over the near term. Playing across both public and private markets can lead to roaring returns when market sentiment is high but as we are now seeing, it can also deliver a sharp bite.
LPs have had such a thirst for private equity in recent years that they’ve drunk the bar dry! Some no longer have capacity to take on additional capital commitments, impelling GPs to come up with ever more creative ways to entice them into their latest buyout funds. It’s been an incredible period for PE fundraising but even the best parties fizzle out. This next period could be the most competitive yet as GPs look to out-compete their peers on the dance floor.
The deal struck by Schroders this week to acquire sustainable infrastructure manager, Greencoat Capital – outbidding ten other asset managers – suggests that demand for private market talent is red hot. Talent is a highly sought after commodity and comes with its own supply chain constraints. Buying ‘ready made’ teams of specialists might be easier than enticing people away from their well-paid roles but could this trend lead to culture clashes and disharmony?
Elon Musk’s $46 billion bid for Twitter has set the cat among the pigeons. If he succeeds, with the backing of a private equity/credit sponsor – who knows, maybe Apollo will be the one? – it will take private one of the world’s biggest social media platforms. But could it prove to be a difficult (poison) pill for private equity to swallow? After all, Twitter is an essential piece of democratic infrastructure.
The deal struck by Schroders this week to acquire sustainable infrastructure manager, Greencoat Capital – outbidding ten other asset managers – suggests that demand for private market talent is red hot. Talent is a highly sought after commodity and comes with its own supply chain constraints. Buying ‘ready made’ teams of specialists might be easier than enticing people away from their well-paid roles but could this trend lead to culture clashes and disharmony?