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

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.

IPEM’s roots are in Cannes, where it all started in 2016 with 400 attendees. Fast forward to IPEM Paris 2023, which welcomed over 6,000 delegates, and the arc of growth has been significant; mirroring the growth of private markets, whose total AUM was circa $12 trillion at the end of 2022.

Cannes 2024: Where Deals Take Center Stage

Whether private markets can continue their impressive ascent and play a bigger role in financing the real economy (flipping roles with public markets) will, to some extent, depend on how effective GPs are at putting capital to work in a ‘higher for longer’ rate environment. According to Pitchbook, in 1H23, European VC deal value was down 60% compared with 1H22, while in private equity, global buyout deals are heading for a 40% decline.

Consequently, the theme of Cannes 2024 is “Getting Deals Done”. With GPs under pressure from investors to put capital to work, and successfully exit investments to lock in realized returns, the agenda has been designed to foster meaningful debate among industry practitioners.

Every private market asset class, from VC and PE to private credit and infrastructure, will be covered, from a ‘deal dynamics’ perspective. Private credit, in particular, has seen tremendous growth in recent years with a total AUM in excess of $1.5 trillion. And while lending opportunities to both sponsored and non-sponsored corporates remain healthy, private credit managers will need to carefully consider the risks if, as expected, loan defaults begin to tick up in 2024.

Part of the reason why deal activity is challenged is the extent to which financing costs have risen in the last two years, requiring GPs to commit more equity; leverage is lower and more expensive. This is playing to the advantage of private credit funds, as GPs look for alternative financing options beyond the syndicated loan market. But even private credit funds will need to be careful about which deals they back in 2024, as the industry watches for signs of corporate stress and loan defaults.

“Valuation resets will be an important aspect of the discussion. How will this influence future deal-making?” comments Antoine Colson, CEO and Managing Partner at IPEM.

Will there be more distressed companies, creating attractive M&A opportunities? And if so, which sectors might be the best considerations?

GPs will likely need to focus attention on how they approach deal structuring, as they consider new ways to innovate. It will be a key aim of Cannes 2024. Will the industry see more corporate carve-outs and more add-on acquisitions?

“We want to provide a platform for dealmakers who have been particularly active in recent months, and allow them to discuss how they’ve approached getting deals done in this environment,” adds Colson.

Evidence of the fact that GPs are pushing the innovation envelope to source and execute deals can be seen in the launch of firms such as US-based Clipway. The investment firm has developed a proprietary Technology-Enabled Secondaries System (TESS) to optimize its investment strategy. Technology will arguably play an increasingly important role as GPs, more broadly, adopt digital tools to improve investment outcomes.

Watch the date

Two months before the event, delegates’ IPEM Accounts will be open for people to begin organizing meetings and filling their calendars. In the meantime, all relevant details pertaining to Hotel Bookings and reserving seats on the IPEM Croisette Express can be found on the main IPEM website.

So how does Antoine Colson feel as IPEM reaches its 10th edition?

“Back in 2016, we had 400 delegates for the first edition. With IPEM Paris 2023 and the upcoming 10th edition in Cannes, we expect 10,000 delegates to have attended. That’s a fantastic journey and something we have achieved thanks to a growing and energetic industry. We are thankful to the people who have pioneered IPEM and supported us along the way.“

“Still, life is not a calm river. We’ve lived through COVID, are we expect other hurdles to overcome in the future. We expect the 10th edition to be a great celebration and we’re looking forward to sharing it with the IPEM Community.”