Brian Heckler on LinkedIn: PE’s exit slowdown persists in 2024 (2024)

How much global private equity is tied up?!?$3.7 trillion…. But get this…“Buyout funds have approximately 26,000 companies in their portfolios, representing a staggering $2.8 trillion in unrealized value. A majority of those assets are edging up against (or past) the typical five-year time frame for a PE exit.”Wondering if there’s an avalanche of acquisition activity and value creation opportunity lodged on that mountain?Read on.Super insightful analysis, worth the read.#mergers #acquisitions #divestitures #spinoff #privateequity

5

2 Comments

〽️'Uncertainty is the enemy of dealmaking' have produced their Midyear Private Equity report providing a comprehensive overview of the private equity landscape and sheds light on the current state of the industry.🌐 One of the report's significant insights is the increasing competition for attractive investment opportunities. As the #privateequity market continues to thrive, the supply of quality deals is becoming scarcer. This trend places even greater importance on #strategicplanning, #duediligence and #valuecreation to unlock growth and generate superior #roi.🪙 Moreover, the report delves into the growing influence of #esg considerations in the private equity space. Investors are increasingly seeking #sustainable and socially responsible investments, pushing firms to integrate ESG principles into their strategies. Embracing ESG practices not only aligns with the values of today's stakeholders but also has the potential to drive long-term value creation.✉️ If you are interested in discussing any #leadershiphiring or have any specific staffing needs within #commercial #strategy #esg or #sustainability, do get in touch: tim.hartnell@venaripartners.com 📌 Full report below...

21

Unrealised value in buyout portfolios at an all-time high as funds struggle to exit - leads to interesting questions with implications for the broader economy: Will investors buy into continuation funds to keep the capital in motion, even if multiples now seem unrealistic? If not, will margin and revenue expansion be able to bridge the gap of compressed multiples to still generate returns? Lots of insights to address the questions in this report by (Call it inertia as I continue to read Bain's PE reports while living on an Indian reservation in South Dakota, about as far away from PE as you can possibly get - perhaps my next post should be about how Catholic social teaching affects finance.)

25

2 Comments

The current landscape presents a golden opportunity to invest in private equity secondaries deals due to a surplus of assets and a downturn in public markets. With $200 billion in assets offered, compared to $100 billion in transactions in the past year, a 2:1 supply-demand ratio beckons.Factors, like lagged valuations and overallocation, are forcing institutions to sell private equity stakes, leading to a buyer's dilemma. General Partners are also selling due to fund closures, LPs pressure for liquidity and other reasons. This illiquidity and imbalance is allowing buyers to demand greater discounts.Returns range from slight discounts for top-performing funds to significant ones for lower-quartile ones, with higher risk-adjusted returns. Despite fees, direct investment seems promising, making private equity secondaries a prudent venture.Are you looking at private equity secondaries opportunities?https://lnkd.in/epdePfge#secondaries #venturecapital #privateequity #liquidity #returnoninvestment

Secondaries Had a Big 2023. This Year Could Be Bigger. (via Institutional Investor): https://lnkd.in/e2jdjRSa#wealthmanagement #privatewealth #funds #InstitutionalInvestor

4

Insightful article highlighting the current market dynamics and underscoring why now is the ideal time to explore private equity secondaries. Reach out to us at Treble Peak to learn how we can facilitate your access to top-tier private equity secondaries managers.#privateequity #secondaries #investmentopportunities

16

In a tough climate for private equity, cash distributions to investors hit a 15-year low, reflecting the challenges of higher borrowing costs and market volatility. While exits slow, the ability to raise new funds is impacted, stretching the median time to 21 months. Yet, the sector still managed to raise a record $500 billion last year. A sign of endurance or a shift in investor strategy? #Finance #PrivateEquity #MarketChallenges #borrowingcosts #volatilemarkets #buyout #IPO #pensionfunds 💼📊📉

6

NEW: Sovereign wealth funds are among investors telling money managers they’ll only commit in their upcoming fund raises if their capital tied up in old funds is released.Additional requests such as fee discounts, greater information rights and representation on committees, are coming in as buyout funds struggle to return money to investors. That’s essentially handing more power to LPs to dictate the terms of engagement.US PE exit activity fell to an unprecedented low last year relative to the industry’s horde of capital under management, according to Pitchbook, with the current median holding period of investments exited reaching 6.4 years, the highest in more than a decade.Story here with Silas Brown David Ramli

77

4 Comments

In private equity, the resurgence of cash as the primary focus underscores the industry's current challenges and priorities.With exit routes frozen, unsold assets are stacking up, delaying investor payouts and posing challenges for future fundraising. However, there's hope that if interest rates ease, exits could pick up pace.Here’s the key takeaway: To address the immediate need for returns, general partners must prioritise developing practical strategies for quick exits.#PrivateEquity #InvestorReturns #ExitStrategies

10

Striking the balance between delivering a tasty #income today while sowing the seeds for higher #dividends in years to come is the artful science at the heart of #equityincome investing. In this week's #InTheKnow blog Rathbone Income Fund manager Alan Dobbie explains how he approaches the task.#Advisers #AssetManagement

4