“Technology, digital media, segments of cleantech and real estate themes are clearly dominating the money raising efforts. What seems to be out of fashion is everything that requires large capital investments, long repayment periods and dependence on governments and regulators, such as biotech, healthcare, infrastructure, leveraged buyouts, and regionally peripheral Europe..”
Who said it: Urs Haeusler, CEO Dealmarket
Context: In a recent round-table discussion Urs Haeusler, the CEO of Dealmarket and publisher of this newsletter, gave his opinion on buyout trends and investment activity over the last 12 months, listing the above themes and sectors as being attractive. Since the company he heads up is an enabler of PE dealmaking as opposed to being an active investor in deals, his view is more neutral than that of an LP or a GP. Besides the sector trends quoted above by Haeusler, he said that he expects private secondaries to increase because PE firms need to improve liquidity and performance metrics. They also need to provide more transparency about performance and execution. An interesting emerging sector trend in his view is investments with “stable income streams and annuities”, such as music, film or pharma royalties and rights. They provide somewhat lower but more predictable returns, double digit mid-teens kinds of returns. (Image source: Corporate LiveWire).
Where we found it: Corporate LiveWire