PE growth leads to ramped up investment timelines
Dry powder for private equity giants is a bit of a blessing and a curse; in turn, more traditional private equity firms are adding private credit to their business lines.
Over the summer, some of the largest institutional allocators (aka pensions) placed billions upon billions into private equity funds that closed in rapid succession, meaning that investment teams are scrambling to position themselves prior to any recessionary environment that may be coming down the line.
If you are a systematic or trend following manager, the markets have turned to your favor, with gains that far exceed traditional markets and in turn have helped to boost the prospects of?a hedge fund industry?that has taken serious redemption and return hits in 2022.
At the same time as market volatility rises and IPOs slow, all eyes are on the private equity valuations going further. In fact, the nation’s largest endowment portfolio,?Harvard Management Company, is keeping a close eye on how private equity returns are priced going forward.?
All eyes on year-end, as both investors and asset managers look to remain nimble and profitable in uncertain global economic conditions.
Invest well,
Susan Barreto, Editor
News
Nuveen to buy European private debt firm Arcmont
Nuveen has agreed to acquire a controlling interest in European private debt firm Arcmont Asset Management, leading to the creation of Nuveen Private Capital - one of the world’s largest private debt managers with over $60 billion in committed capital.
General Atlantic forms credit business
The $73 billion global growth equity firm General Atlantic has agreed to purchase Iron Park Capital Partners, a credit firm that will be part of the creation of General Atlantic Credit (GA Credit).
Churchill attracts $12bn for senior lending
Churchill Asset Management raised over $12 billion in third-party capital for its most recent senior lending program, which includes the closings of Churchill’s flagship levered and unlevered senior loan funds, publicly registered vehicles and separately managed accounts.
Nordic Capital Fund XI surpasses its hard cap
Nordic Capital has held one of the largest fund closes in Europe with its Nordic Capital Fund XI, surpassing its hard cap at €9 billion ($8.9 billion).?The firm’s strategy is to invest in non-cyclical growth businesses in partnership with management and with a focus on operational improvement.
AW Research
The private equity war chest nearing a new record
Our analysis of large private equity firms shows that over the past two years, inflows, capital deployed, and available capital have continued to increase — and five of the world’s largest private equity firms are approaching new highs again.
Healthcare trends dominate dealmaking across asset classes
Divided by asset class,?Alternatives Watch?tracked a total of roughly $5.6 billion in deals publicly announced in the five-day period for the week ending Oct. 28.
PE firms hang on to previous gains to buffer traditional market losses
Institutional investor committees have acclimated themselves to the proverbial sea of red in their chief investment officer’s portfolio performance reports in recent months.
Hedge funds back on allocators’ agenda
Hedge fund mandates are back as the search for alpha is on among U.S. pension systems, with the latest AW Research?Investor Scorecard?tracking $6 billion in fresh allocations to hedge fund/alpha strategies last month.
Features
Medtech prognosis remains healthy despite IPO slowdown
Ceros Financial CEO Mark Goldwasser shifted the firm's 2022 investment goals, but that’s not to say he lost faith in the future of medical technology – and with 71% of medtech companies expanding R&D spending and 77% having bolstered headcount, it’s easy to see why.
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ESG insights sought amid a growing data-driven investment universe
Institutional investors have been on the receiving end of so many ESG-related data products lately that they may be forgiven for believing benchmarking their way to ESG investment success can’t be done.
Consumer lending trends defy recession fears
It’s either the worst of times or bound to get worse, depending on whom you ask these days – but while delinquencies are beginning to rise, Atalaya Capital management's Ivan Zinn expects his portfolios that lend to the lenders will continue to perform.
Brightwood preps for growth with healthcare and tech/telecom credit focus Brightwood Capital Advisors launched a mere two years after the global financial crisis and is now more bullish than ever on lending as it positions its senior direct lending floating rate strategy for growth.
Investors
Illinois Teachers gives nod to $2.2 billion in alts investments
The Teachers' Retirement System of the State of Illinois reviewed new commitments of up to $2.16 billion to several alternative asset classes recommended by staff, along with $475 million in new commitments to public equity investment.
New Mexico fund to shift $1.5bn to alts strategies in FY23
The $36.6 billion New Mexico State Investment Council recently unveiled its proposed FY 2023 annual investment plan, which included additional allocations across private markets.
Mubadala teams up with KKR to invest $1bn in APAC credit market
The sovereign wealth fund Mubadala Investment Company in Abu Dhabi and KKR are collaborating to co-invest across performing private credit opportunities in the Asia Pacific region.
PennSERS approves new PE, RE commitments; preps RFI
The board of the $38 billion Pennsylvania State Employees’ Retirement System (PennSERS) approved allocations totaling up to $225 million to new private equity and real estate investments at its Sept. 22 meeting.
People Moves
CDPQ taps PSP Investments exec to head private equity
The C$392 billion ($288 billion) pension CDPQ appointed Martin Longchamps as executive vice-president and head of private equity.
Former BlackRock HF CIO joins crypto shop
Matthew McBrady has joined digital assets specialist Strix Leviathan to oversee the firm’s growth and to advise on the trading and investment strategies.
Former Amundi CIO to join ADIA
The Abu Dhabi Investment Authority (ADIA) will welcome Pascal Blanqué as a global head of quantitative research and development in its strategy and planning department on Nov. 1.
Hamilton College names Jacobson CIO
Lauren Jacobson is joining Hamilton College as its chief investment officer, overseeing the investments for the school’s $1.3 billion endowment.