H/Advisors Private Capital Wrap-Up 9th September 2024
?
13th September 2024
WORTH A READ
Europe
IPEM wrapped up its second Paris edition this week at the Palais de Congrès. The global private capital industry came together in the French capital and left with a sense of progress and opportunity. Over three days, key discussions took place on navigating uncertain markets, innovative investment strategies, and fostering relationships in the ever-evolving financial landscape. Our Managing Partner Sam Turvey, gives his thoughts.?
Gerry Cardinale, founder of RedBird Capital Partners and owner of AC Milan, criticises the influx of private equity into sports, arguing it has led to “massively inflated valuations” based on "facile notions” about growth expectations. The Financial Times shares how he contends that many investors are simply parking money in sports assets without adding value, contrasting this approach with RedBird's strategy of leveraging its industry experience to improve team performance both on and off the pitch.
Colm Walsh, co-manager of ICG Enterprise Trust, writes in Citywire, arguing that the listed private equity sector is poised for a rerating as interest rates begin to fall and market conditions improve. He notes that while private equity-backed businesses have continued to perform well, investor sentiment has been overly negative, resulting in significant discounts to net asset value for many trusts, including ICG Enterprise Trust which trades at a 33% discount despite strong underlying performance.?
United States
According to Bloomberg Law’s Jill R. Shah and Jessica Nix, there has been a “flood” of issuance in the leveraged loan market as $53.9 billion worth of deals have launched so far this month, including 15 this past Monday. The article notes that private equity sponsors are using the current window before the U.S. election to pay investors after the industry has generally struggled to sell portfolio companies and return cash to limited partners this year. ?The article quoted Joe Lynch, global head of non-investment grade at Neuberger Berman, who said, “There’s definitely a riskier cohort of deals and it feels like they’re going to get done.”?
Private equity is looking to make its mark in the life insurance industry, report Bloomberg’s Allison McNeely, Marion Halftermeyer and Silla Brush. The authors note that insurers have begun to invest more in private credit products, but that some are more hesitant about the increased activity and believe it could put the nest-eggs of millions of savers at risk. Wilma Burdis, a life insurance and wealth management analyst at Raymond James & Associates added that “A lot of the stuff that PE players are packaging is untested, yet being treated the same as a bond in terms of risk and safety.”?
In an attempt to build yet another revenue stream, BlackRock is teaming up with private equity firm Partners Group to build a preset portfolio it can offer to wealthy individual investors that will allow them to tap into private markets. According to The Wall Street Journal’s Miriam Gottfried and Jack Pitcher, “BlackRock and Partners Group see an opportunity in bringing private markets to individuals in a simplified way,” and are likely incentivized by the higher fees that tend to accompany private fund investments.?
?
WALL OF MONEY
Intermediate Capital Group Plc has raised €15.2 billion ($16.8 billion) for a European direct-lending fund, the largest of its kind ever to close in the region.?
Castik Capital has held the final close of its third fund on €2bn, surpassing a target of €1.75bn. EPIC III is 60% larger than its predecessor fund, which closed at €1.25bn in October 2020.?
Inflexion has closed its latest enterprise fund at its hard cap of ￡975m. The London-based private equity firm said that Inflexion Enterprise Fund VI was raised in less than five months and follows its ￡400m predecessor fund.?
领英推荐
BEX Capital , a private investment firm focused exclusively on secondaries in private equity fund-of-funds, secondaries funds and co-investment funds, has held the final close of BEX Fund V at its target of $765m in capital commitments.?
DEAL CHART
?
?
MEDIA OF THE WEEK
H/Advisors Maitland’s David Sturken interviewed Christophe Bavière, Co-CEO of Eurazeo at IPEM TV in Paris, where they discussed the state of private capital and whether the good times are over, or they’re on their way back. H/Advisors Maitland’s Sam Turvey and Tom Robertson conducted a range of interviews as well, which you can also watch on IPEM’s YouTube channel.??
MOVERS AND SHAKERS
PGIM Real Estate has appointed Richard Price as MD and international equity senior portfolio manager.?He will work in partnership with the portfolio management teams of PGIM Real Estate’s European, Latin American and Asia Pacific strategies.?
Carlyle has appointed Anuj Poddar to the newly created role of co-head of global portfolio solutions (GPS) for Asia, focusing on India and Southeast Asia.
Michael McGrath, a former global head of alternatives at Morgan Stanley Wealth Management is heading to Bluerock , where he will be the new head of product.
FROM THE HORSE'S MOUTH
“This is about my crowd coming into sports. The problem with my crowd is they are asset managers,” he said on stage at the IMG x RedBird Summit on Wednesday. “They just want to buy stuff, and that’s not great for intellectual property based businesses.” – Gerry Cardinale, founder of RedBird Capital Partners and owner of AC Milan
“Listed private equity has been substantially out of favour. While it is not unusual for asset classes to go through periods of unpopularity with investors, the length of the current bear market is unusual” – Colm Walsh, co-manager of ICG Enterprise Trust
“"Never give up; just absolutely never give up.” – Shane Warne, Australian cricketer, born on this day in 1969.?