Topics: Private Equity Research and Trends

Shift to Alternative Assets Gathers Pace

Shift to Alternative Assets Gathers Pace

Institutional investors are turning into alternative assets. The worldwide trend of opting for investments such as property, infrastructure, private equity and hedge funds has been gathering pace since last year. The shift to alternative assets has also driven up valuations of these illiquid assets – concern over returns is starting to mount up.   Alternative assets under management increasing   [...]

Private Equity Investment Up by 64% in India

Private Equity Investment Up by 64% in India

Private equity investment in India is booming, according to the latest report by Grant Thornton. The report shows PE investment jumped by 64% in value terms in May. The region attracted $663 million worth of private equity investment during the month, driven by big-ticket investments.   Deal value improving, but deal numbers declining   While the deal value increased in [...]

Private Equity Struggling to Raise Funds in the Middle East

Private Equity Struggling to Raise Funds in the ...

Private equity and venture capital funds are not performing strongly in the Middle East, according to the latest reporting. MENA Private Equity Association published its annual report, which shows a 41% drop in private equity and venture capital funds last year. In terms of the region’s winner, UAE attracted the most interest from private equity funds.   The report’s findings [...]

Private Equity and Risk Management – Nitty Gritty or Big Picture?

Private Equity and Risk Management – Nitty Gritty ...

The role of the risk manager overseeing quoted assets is difficult to transfer to private equity. For illiquid assets risk management can add the most value before investing starts, i.e., designing and communicating the investment strategy. Risk management in private equity needs to deal with the big picture, the portfolio, and should not get lost in details.   As I [...]

Private Equity – How to balance risks versus opportunities

Private Equity – How to balance risks versus ...

This year’s Oxford Symposium (13-14 December) on Risk Management in Private Equity asks how investors can balance risks versus opportunities in order to maximize risk-adjusted returns – in other words, risk management as a value add. This article gives insights into the focus topics of the symposium and provides food for thought to investors on how to maximize risk-adjusted returns.     Mind the [...]

Brexit – The great disorder under the Heavens?

Brexit – The great disorder under the Heavens?

It looks that the financial industry bet the wrong way on the biggest market event since the 2008 financial crisis. The Brexit referendum’s outcome has already been called ‘the greatest Black Swan event of the millennium’ (personally, I believe that this unexpected result rather falls into the category of what we practitioners refer to in our daily work as ‘king [...]

Trees that are slow to grow bear the best fruit

Trees that are slow to grow bear the best fruit

  Private equity is estimated to be less than 2% of all assets managed internationally. It is – at least in theory – an inherently contrarian asset class. But being countercyclical and contrarian is difficult. For illustration, a few days ago I read an article that predicted the ‘denominator effect’ to return. The news was dated April 1st, so I [...]

Bedazzled? – The Lure of Co-Investing

Bedazzled? – The Lure of Co-Investing

9/10 December 2015 saw the second edition of the Oxford Symposium on Risk Management in Private Equity, organised by the Saïd Business School’s Private Equity Institute in cooperation with my company, LDS Partners. Nearly 70 academics and industry practitioners participated this time, an increase compared to last year and close to the lecture theatre’s maximum capacity. The Symposium was held [...]

Billions to the Crowd Taps Appetite for Alt Asset Investing

Billions to the Crowd Taps Appetite for Alt Asset ...

The quick growth and growing confidence in lending platforms and equity crowdfunding is attracting more capital from professional and institutional investors. Milestones announced this summer illustrate these two trends. Zopa, the UK-based pioneer in peer to peer lending, announced on its blog that it hit the milestone of GBP 1 billion in loans.   Elsewhere, Citywire reports that P2P Global [...]

All Asset Classes Getting Expensive

All Asset Classes Getting Expensive

The head of a leading pension fund and respected LP player says that finding a good deal in current markets has become increasingly difficult. In a feature article on aiCIo.com, Ontario Teachers’ Pension Plan (OTPP) CEO Ron Mock was quoted saying that both infrastructure and PE investments are over-priced.   He said that high valuation multiples for businesses in PE, and [...]

Cravings for Direct Co-Investment Still Strong

Cravings for Direct Co-Investment Still Strong

HarbourVest announced closing its latest co-investment vehicle at USD 1 billion, which is about 260 million dollars more than it had committed to its last such vehicle, raided in 2007 Direct, a $734 million fund. The news shows that corporate pensions, public pensions, endowments, and foundations from around the globe have a strong appetite for the co-investment strategy. Elsewhere, FN [...]

This Year’s Top Six Challenges Facing the Global PE Industry

This Year’s Top Six Challenges Facing the Global ...

Regulation is the least sexy part of private equity but it is top of mind this year, as GPs face uncertainty about the burden of compliance, according to Grant Thornton’s latest survey of General Partners (GPs) as summarized in its Global Private Equity Report for the year.  Dealflow, particularly heated competition for deals, and fundraising challenges are also seen as [...]

Navigating the headwinds – Global Private Equity survey

Navigating the headwinds – Global Private ...

Following the financial crisis, the private equity industry had to confront unprecedented difficulties. This inaugural global survey of private equity chief financial officers attempts to capture the impact of these challenges and how finance executives around the world have dealt with them.   The findings not only provide useful insights and observations but also clearly demonstrate that firms are poised [...]

PE Returns Record Amount of Cash in 2013

PE Returns Record Amount of Cash in 2013

This issue of DealMarket Digest is full of news about a record-breaking year for the PE industry. Not only exits, LBO dealmaking and fundraising are up, so are cash returns to limited partners.  The WSJ is reporting that private equity firms were expected to return more than USD 120bn to their limited partners in 2013, topping the previous year's record [...]

A Review of 2013 in Private Equity

A Review of 2013 in Private Equity

Overall, private equity (PE) has performed strongly throughout 2013, continuing its resurgence following the global financial crisis albeit not reaching the levels the market was in 2007. At the same time, not everything has been 100% rosy, and there are still many challenges that PE professionals, investors, and those offering deals will need to face in 2013.   Fund Raising [...]