Episodes
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Mergermarket’s Head of Auctions Rachel Lewis speaks with Debtwire’s Head of Private Capital Josh O’Neill about how the deal financing environment for private-equity buyouts is evolving as we approach the end of 2024.
As we head into the final quarter of the year, European buyouts are on par with the total disclosed value seen across the whole of last year - standing at EUR 133bn. The total number of deals is, however, still down at 946 versus 1,234.
Direct lenders have always had a vital role to play in financing leveraged buy-outs but their approach to auctions, to lending and to sponsors has changed in a higher interest rate and high inflationary environment.
Against this backdrop, O’Neill and Lewis discuss from both of their sides of the table - equity and debt - how the changing financing environment will impact the pipeline for the rest of the year and heading into 2025.
Introduction - 0:25Pipeline from the lenders’ perspective - 2:35Protecting downside risk - 7:57Lending relationships with sponsors and auctions - 12:00Opportunities in lapsed deals - 19:59Debt-for-equity swaps - 22:45Theme music: ©2012 Kick Up The Fire
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Episodes manquant?
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Funds editor Harriet Matthews speaks to William Barrett, co-founder and managing partner at private capital adviser Reach Capital, about the changing private capital advisory market, how the firm is advising its private equity (PE) clients to navigate primary and secondary fundraises in the current market, and what’s next for the independent placement agent.
Investment banks have been building up their private fund advisory capabilities in recent years via consolidation, with notable recent deals including Houlihan Lokey’s acquisition of Triago. They have also hired staff and even engaged in joint ventures with specialised firms to offer fundraising or secondaries advice to their clients.
Against this backdrop, and as an independent private capital advisor, Barrett discusses how Reach Capital has continued to develop its service offering, including the addition of private wealth capabilities. He also shares insights into how Reach Capital approaches taking on primary and secondary capital raising mandates.
Given the challenging fundraising market, there are certain steps that GPs can undertake to pave the way for a successful fundraise, according to Barrett. This includes knowing your client, including the context they are operating in and the other types of investment opportunities that might be on the table for them.
Lastly, Barrett shares his outlook for the primary PE fundraising market and how this will develop in the coming months, and discusses how Reach Capital is planning to continue to grow its service offering and the technology and data that supports it.
Introduction – 0:42
Interview with William Barrett, Reach Capital – 2:19
Current state and evolution of the private capital advisory market – 2:27
Adapting to the needs of GP clients – 5:24
Getting comfortable with taking on primary mandates – 10:00
Taking on secondary mandates: comfort and transparency – 12:39
Advice to GPs: speak to your clients, prepare, and tailor your LP pitches – 16:07
The outlook for primary private equity fundraising – 22:07
What’s next for Reach Capital? – 24:38
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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In this episode, funds editor Harriet Matthews and senior private equity reporter Rachel Lewis share insights from the Mergermarket Private Equity and M&A Forum Europe, exploring the outlook for private equity buyouts, exits and fundraising, as well as the outlook for specific markets, including the UK.
The Forum, which took place on 21 May at the Landmark Hotel in London, brought together private equity and M&A market participants for a day of panel discussions and networking.
In her keynote speech, JP Morgan’s global head of M&A Anu Aiyengar summarised the macro drivers for dealflow in 2024 across public and private markets, highlighting UK take-private activity in particular as a bright spot for dealmaking.
Elsewhere at the conference, panellists discussed topics including the prevalence of preferred equity as a liquidity solution for GPs, how GPs are approaching fundraising in a liquidity constrained environment, and LP preferences and concerns in the current market.
While much has been made of a potential uptick in dealmaking in 2H 2024, conference attendees were cautious when it came to making predictions. Positive indicators include strategic appetite for private equity-backed assets, with hope for interest rate cuts also expected to allow the cogs in the private equity machine to start whirring again.
Mergermarket data round-up – 1:28
Keynote speech takeaways – 3:51
UK market sentiment – 5:20
Fundraising outlook – 6:18
Preferred equity and bridging the valuation gap – 7:20
Returns and distributions – 10:50
Large-cap exit options – 12:15
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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European funds editor Harriet Matthews hosts fellow funds editors Tim Burroughs (managing editor, AVCJ) and Tom Cane (North America) to discuss the insights they gleaned from the Mergermarket New York Private Equity Forum, comparing and contrasting this with PE activity in other regions, and considering what the themes that emerged mean for the outlook for the industry in the US.
European funds editor Harriet Matthews hosts global funds editors Tim Burroughs (managing editor, AVCJ) and Tom Cane (North America) to discuss the insights they gleaned from the Mergermarket New York Private Equity Forum, comparing and contrasting this with PE activity in other regions, and considering what the themes that emerged mean for the outlook for the industry in the US.
Attendees gathered at the Pierre Hotel in New York on 30 April to share insights on the US PE market, exploring topics including exits, value creation, valuation, GP-led secondaries, private credit and the appeal of various sectors.
The Mergermarket team shares key takeaways from the day, summarising the perspectives of GPs and LPs. Cautious optimism was in the air, with an uptick in exit volume in 1Q 2024 bolstering hopes for a reopening of the exit market.
Challenges remain in dealmaking and fundraising, however. Valuations have yet to be truly tested, with only the best assets typically trading over the past 12 months. Meanwhile, LPs are continuing to work out how to manage their liquidity, with distributions having fallen significantly from a high point in 2021.
The team also provides insights on how the US outlook compares of that in Europe and Asia when it comes to secondaries and dealmaking, as well as the geopolitical climate.
Introduction – 0:34
Dealflow and valuations – 1:30
The exit outlook – 4:17
GP-led secondaries – 6:33
The fundraising market – 9:48
Further themes: value creation private credit – 12:53
The US elections and the H2 outlook – 15:21
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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With “cautious optimism” the prevailing sentiment for the start 2024, the Mergermarket private equity (PE) reporting team takes stock of our 1Q 2024 European private equity data, providing insights into how this year could shape up for deal activity, exits and fundraising.
2024 started off more strongly than 2023 in terms of private equity activity, with deal count up by 21% and disclosed deal volume more than doubling versus Q1 2023. Activity has dropped since Q4 2023, however, with deal count down by 6% and disclosed deal volume by 72%.
Although a number of successful exits were announced in the past quarter, PE firms made 13% fewer exits in Q1 2024 versus Q1 2023, marking the worst quarter for exits since the start of the COVID-19 pandemic.
This episode begins with an overview of Mergermarket PE buyout, exit and fundraising data, highlighting the top sectors and geographies.
With the PE industry is preparing for an uptick in activity over the course of the coming year, the Mergermarket team explores the current macro picture, deals to watch out for this year, and changes to deal structuring that GPs are pursuing to get deals done, including minority stake sales and equity syndication.
Data overview: PE deal activity, exits and fundraising – 0:42
The macro picture and the road ahead – 4:26
The outlook for PE exits – 7:54
Processes to look out for – 10:10
The rise of deal-by-deal fundraising – 11:44
Changes to deal structuring – 14:26
Going back to exits – 17:00
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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With GP-led secondaries becoming a mainstay in the private equity exit toolbox, Mergermarket's funds editor Harriet Matthews and senior private equity reporter Rachel Lewis discuss the outlook for this growing part of the private equity market. In a guest interview, Elena Laleh, managing director at Kline Hill Partners, discusses the secondaries investor’s European and North American strategy, highlighting the sizeable opportunity to be found in GP-leds in the lower mid-market.
With EUR 47.3bn raised across 16 secondaries funds active in Europe in 2023, versus EUR 30bn across 18 funds in 2022, LP demand for secondaries strategies shows no sign of slowing in the face of a tough fundraising market.
While megacap fundraises of EUR 10bn-plus from the likes of Goldman Sachs, Glendower Capital and Lexington Partners typically bolster secondaries fundraising volume, with large-cap deals grabbing headlines, there is also ample opportunity in the lower mid-market, where GPs are also looking to continuation funds as an exit option, but investor capital is more scarce.
Elena Laleh discusses Kline Hill’s focus on “trophy assets” in this market segment, which sees it engaging in deals of less than EUR 250m in size and deploying around two-thirds of its capital in the US and one third in Europe.
She also shares her view on whether an anticipated exits uptick will affect GP-led secondaries dealflow, and discusses the importance of due diligence, returns and alignment.
Following the interview, the Mergermarket team dissects the key takeaways, sharing data on PE exits in the lower mid-market and recent reporting on secondaries activity in this market segment.
Introduction – 0:38
Current state of the GP-leds market – 1:34
Secondaries fundraising: data recap and LP appetite – 4:35
Interview with Elena Laleh, Kline Hill Partners – 8:48
Kline Hill’s GP-led strategy and lower mid-market focus – 9:56US versus European GP-led secondaries market dynamics – 11:41GP-led secondaries and exit environment optimism – 12:52Valuations in GP-led deals – 15:58Returns in the GP-led secondaries market – 18:24Capital supply in the secondaries market – 21:15Kline Hill’s view on alignment – 23:37Key takeaways – 25:16
Lower mid-market PE exits – 26:15
GP due diligence in secondaries deals – 29:06
Mergermarket reporting on recent lower mid-market GP-leds – 31:03
Adviser adaptation and market consolidation – 33:20
You can listen to the podcast HERE, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Mergermarket’s funds editor Harriet Matthews speaks to Pierre-Antoine de Selancy, managing partner and co-founder of net asset value (NAV) lender 17Capital, about the evolution of NAV financing and its use cases in the current market, as well as wider industry reservations about the use of this type of leverage.
The use of and interest in NAV financing has been growing in recent years. In times of restricted liquidity and a tough fundraising market, GPs can use this tool for situations including refinancing a group of portfolio companies to take advantage of M&A opportunities.
De Selancy addresses some of the questions that LPs have around NAV financing, arguing that using leverage is a core skill of private equity professionals in creating value for investors, and the use of NAV financing is part of this process. “If limited partners are worried about GPs putting in place debt, they should not be investing in private equity,” he said.
90% of the money used in NAV financing goes into portfolio companies, whereas 10% is used to make distributions, he said, playing down concerns around “fake DPI”. “It’s not a competitive world – it’s an ultra-competitive world,” he said, noting that LPs now have more choice than ever and are applying increasing scrutiny to how GPs are creating value and balancing this with risk. It is important that GPs “do the right thing” for their LPs, he said, emphasizing the importance of communication.
Lastly, de Selancy discusses the future of NAV financing as a “new niche” and “the fastest growing market in private credit”, features which are likely to drive the growth of 17Capital itself.
0:39 – Introduction
2:54 – Interview with Pierre-Antoine de Selancy
3:26 – 17Capital’s strategy4:49 – Current use cases for NAV financing7:13 – NAV financing versus continuation funds11:27 – Cost of capital dynamics14:42 – NAV financing and LP sentiment25:49 – What’s next for the NAV lending industry?28:20 – 17Capital’s future growthYou can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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In this week’s episode, Mergermarket's funds editor Harriet Matthews and senior private equity reporter Rachel Lewis explore how private equity (PE) firms are turning to various options in an effort to secure succession between generations of management, with a guest interview from Jon Harvey, Head of Relationship Management at Investec Fund Solutions.
As the PE industry matures and grows, with GPs growing from single-strategy firms to multi-strategy asset managers, the themes of succession and the value within private equity firms have grown in prominence.
The team kicks off the episode by discussing some recent examples of succession, including the reported search for a chairman at Bridgepoint [LON:BPT], and Cinven’s recent managing partner shake-up.
Investec’s Harvey starts off by discussing the rise in prominence of the theme of succession, some of the routes available to GPs (including GP stake sales, IPOs, and management company financing). Harvey discusses how the theme of succession is linked to wider pressure within the PE market, including exits, fundraising, and securing a GP commitment for their next fund. He also shares his insights on what GPs should consider to shore up culture and create alignment within their teams when managing succession.
Lastly, the Mergermarket team discusses key takeaways from the interview, and also discusses some situations where succession has not been so smooth, as well as the importance of succession and monetisation for growth, and the issue of team retention.
Introduction – 0:38
Recent examples of succession plans – 2:14
Interview with Jon Harvey, Head of Relationship Management at Investec Fund Solutions – 4:40
Triggers for succession – 5:17Pros and cons of different succession paths – 8:59LP alignment and GP commitments – 13:04How to use permanent capital – 17:31When succession goes wrong – 23:40
Monetisation for growth – 25:00
Retention in PE – 29:25
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Joerg Zirener, a partner at One Equity Partners (OEP), speaks to Mergermarket’s funds editor Harriet Matthews about the firm’s mid-market strategy and his outlook for 2024, covering topics including buyer and seller valuation expectations, mid-market value creation levers, and where OEP sees opportunities for dealmaking.
Founded in 2001 and with operations in Europe and the US, OEP’s team has made more than 120 platform investments and more than 300 add-on acquisitions. “We look for what we want to buy, instead of what’s for sale,” says Zirener of the firm’s largely proprietary origination process.
Zirener is “cautiously optimistic” for 2024 as the sponsor continues to find ways to deploy equity and support its portfolio companies. “We are specifically continuing to look at opportunities to support companies to add to their capabilities, build scale, enter new markets, enhance their competitive position in their respective markets, so all around transformative combinations,” he says.
Areas of focus for OEP in 2024 include digitalisation and artificial intelligence (AI), as well as the industrials sector. It is also continuing to focus on buy-and-build, allowing its companies to gain scale in a range of ways, including geographically.
Based in Frankfurt, and having joined OEP in 2006, Zirener has operated in the private equity industry across a number of different dealmaking climates. Rounding off the interview, he shares his perspective on how the current market compares to that of the time when he first entered the industry.
Introduction – 0:30
OEP’s strategy – 2:42
Sourcing deals with a European and US presence – 5:01
The appeal of the mid-market – 7:52
Exits and investment pace – 12:04
Value creation levers – 17:35
Overcoming dealmaking challenges in 2024 – 20:00
Perspective on the current market – 25:22
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Mergermarket's funds editor Harriet Matthews and senior private equity reporter Rachel Lewis discuss what the key themes that emerged from January’s IPEM conference in Cannes mean for the 2024 outlook for the European private equity industry, touching on topics including debt, exits, fundraising, and the secondaries market.
With interest rates expected to stabilise this year, private equity is adjusting to paying more for leveraged buyout financing and is approaching 2024 with a cautious optimism.
However, the industry is not out of the woods yet when it comes to the eternal question of returning capital to LPs via DPI (distribution to paid-in capital) in a tough exits environment. Creative routes continue to be on the agenda, be it recaps, minority stake sales or GP-led secondaries.
Fundraising challenges also remain, with LP capital still scarce – but with deployment and the overall pace of fundraising expected to continue to return to a more even keel, the outlook for 2024, as well a the longer term outlook for pools of capital available to private equity funds, could be a little brighter.
0:31 – Introduction
1:13 – The macro picture
3:04 – A bad time to make exits?
5:02 – Debt dynamics and recaps
5:59 – Secondaries market growth
8:40 – Private equity’s creativity
9:45 – Fundraising challenges
12:29 – Adjusting returns expectations
14:09 – The pace of deployment
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Tom Ross-Jones, partner at UK-based private equity firm Palatine, speaks to Mergermarket senior private equity reporter Rachel Lewis about the sponsor’s journey with sustainability consultancy Anthesis, setting out how the deal was originated, the value creation initiatives during the investment period, and the exit process.
If private equity had its own dictionary, value-creation could easily have been a top contender for ‘phrase of the year’ through 2023. Everyone is speaking about it, but there are still questions around how many GPs are achieving it.
Palatine originally took a minority stake in sustainability consultancy business in Anthesis in the quarter of 2021 for a reported GBP 50m. Just two years later it, returned 6x with Carlyle Group entering as a majority shareholder, only for Palatine to re-invest in a minority position to keep some exposure to the business. The deal was valued at a reported GBP 400m, although Palatine did not confirm this valuation.
In this episode, Ross-Jones, discusses the sponsor’s investment and journey on value creation. He starts off by discussing the sponsor’s approach to origination, what measures it put in place as a minority shareholder, and the significance of human capital and culture in creating value.
Later, the podcast delves into the importance of data, whether buy-and-build still works, how it got the company ready for an exit and exactly why it reinvested under Carlyle’s ownership.
Introduction – 0:31
Interview with Tom Ross-Jones – 1:35
Palatine’s approach to origination and first eyes on Anthesis – 1:58Making a minority investment – 5:00 Approach to leverage – 7:23First steps and initial value creation – 9:02Palatine’s value creation playbook – 16:48Levers for mid-cap value creation – 20:18Integrating bolt-ons and the future of buy-and-build – 22:23 Getting the company ready for exit – 26:40Reinvesting for a minority stake – 30:33You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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As a tough year for the European private equity (PE) draws to an end, Mergermarket’s private funds editorial team gives a market overview and highlights key topics including the resilience of the mid-market, consolidation in the advisor space, and the popularity of co-investments.
The last 12 months brought with them the collapse of Credit Suisse and Silicon Valley Bank; a return to higher interest rates; and yet more geopolitical uncertainty and conflict.
Although private equity activity has remained subdued this year, particularly versus the highs of 2021 and 2022, the industry has continued to innovate and adapt, looking for ways to get deals done and maintain liquidity.
Consolidation remains an ongoing theme in the private equity industry – not only via value creation through buy-and-build, but in the form of asset managers acquiring specialised and mid-market firms. The mid-market has seen consistent dealflow and exits against a tough backdrop, leading larger sponsors to re-enter the mid-market so as not to miss out.
The PE advisory industry has also been busy consolidating amid a drop in dealflow and therefore a drop in fees, with more consolidation on the cards for 2024 as advisers look to gain market share and add new capabilities to their roster.
Structuring deals in 2023 has been challenging in a higher cost of capital environment, leading GPs to explore options including adding more equity into deals in the form of co-investments. These deals also have benefits to LPs including relationship-building and an opportunity to gain in-depth insights on how their GPs operate.
0:55 – Market overview
2:20 – Mid-market outlook with Rachel Lewis
11:48 – PE advisory consolidation with Min Ho
17:51 – Co-investment perspectives with Ero Partsakoulaki
You can listen to the podcast on your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
Interested in private equity analysis? ION Analytics has more.
Private Equity Trendspotter: Sponsors look to kick-start stalled cycle as deployment, exit pressure mount
LPs need more convincing for value strategies as carve-out pipeline picks up - analysis
Private equity’s love story with outsourced pharma services to heat up in 2024 – analysis
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Private equity dealmakers in the DACH region have been facing a plethora of challenges in 2022 and 2023 in particular. Funds editor Harriet Matthews discusses the 2024 outlook with HIG Capital’s Holger Kleingarn, and is also joined by Mergermarket’s DACH bureau chief Patrick Costello, who shares his insights on market sentiment and how dealflow is shaping up for 2024.
DACH private equity activity in the year to date has comprised EUR 18bn of disclosed deal volume across 156 deals, versus EUR 27bn of deal volume and 164 deals in 2022, according to Mergermarket data. Exits have also fallen, with EUR 7bn in disclosed volume across 44 deals in 2023 YTD versus EUR 11bn across 51 deals in 2022.
Meanwhile, fundraising for DACH-focused buyout funds has reached an eight-year low in 2023, with EUR 2.7bn raised across five vehicles – but with EUR 159bn of the approximately EUR 165bn total buyout fundraising in Europe potentially able to make DACH deals, the region will not be short of capital to get deals done when the market picks up.
In a guest interview, HIG Capital managing director Holger Kleingarn gives an overviews of the challenges and opportunities for private equity in the DACH region, including the macro picture and the art of the PE exit.
Kleingarn also highlights sectors and themes that are of interest to HIG, including infrastructure services, healthcare services, labour location and reallocation, sports and esports, business process automation, AI, and energy efficiency.
Lastly, the team discusses some of the key points from the interview with Kleingarn, and looks ahead to some of the topics that the market will be keeping an eye on as we move into 2024, including buyer and seller valuation expectations.
DACH data overview – 1:26
Fundraising focus – 2:58
Market sentiment – 5:17
What’s in the year-end and 2024 deal pipeline? – 6:27
Interview with Holger Kleingarn – 8:37
The macro picture – 9:04Opportunities for private equity – 12:192024 outlook and HIG’s key sectors – 17:29The art and science of exits – 23:51Cause for optimism – 29:30Key takeaways and analysis – 35:05
Adjusting valuations – 37:27
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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With corporates looking to divest non-core businesses and private equity investors placing a renewed emphasis on value creation, carve-outs are climbing the agenda for many GPs. Harriet Matthews and Min Ho explore the factors behind current dealflow, with a guest interview with Tristan Nagler, partner at Aurelius.
According to Mergermarket data at the time of recording, EUR 190bn worth of carve-outs have taken place in EMEA in 2023 YTD, with EUR 39bn taking place in September and October alone. Competition for carve-outs also appears to be on the up, with more US players edging their way into the European market.
Following a discussion of headline data and upcoming deals, Harriet Matthews speaks to Tristan Nagler about the outlook for complex corporate carve-outs and how Aurelius approaches this market.
While a process can attract “a flurry of interest” at the start, the complex and uncertain nature of corporate carve-outs and the level of risk often means that there is “a high rate of attrition” in processes, according to Nagler.
Nagler discusses Aurelius’ outlook for carve-outs dealflow, including buyer and seller motivations, what makes a “good” carve-out, where the GP sees pockets of opportunities, and how ESG can be a dealbreaker for the firm.
In the final part of the episode, the Mergermarket team highlight some of their key takeaways from the interview, as well as the role of communication with unions in carve-out processes, and why carve-out strategies are appealing to LPs in the current market.
Intro – 0:27
Data and recent deals – 1:07
Dealflow drivers – 4:22
Who’s buying? – 7:26
Interview with Tristan Nagler, partner at Aurelius – 10:23
A wave of carve-outs? – 11:26The changing buyside landscape – 16:25What makes a “good” corporate carve-out? – 20:51Pockets of opportunities – 23:39Shoring up a target – 27:19Value creation levers and Aurelius’ portfolio – 31:26The role of ESG – 35:45Key takeaways – 39:31
The role of unions and long-term goals – 42:01
The LP view – 45:06
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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While current sentiment around private equity investment in the consumer sector is mixed due to its exposure to inflation and consumer demand, sponsors are still finding attractive opportunities to deploy. Advent International managing director Nicolas Chavanne joins the podcast to discuss the GP’s approach to investing, how it assesses the market, and how and why it aims to secure optionality on exit.
Ahead of the interview with Advent’s Chavanne, funds editor Harriet Matthews hosts private equity reporter Ero Partsakoulaki to run through Mergermarket data on sponsor activity in the consumer sector. The team explores the trends and drivers behind activity, as well as recent Mergermarket intelligence about upcoming processes in the sector.
Chavanne began his career in investment banking, following which he spent 14 years with private equity house Towerbrook Capital Partners. He joined Advent International in 2019 to leads its retail, consumer and leisure investments.
He explains how “you have to be a bit of a truffle pig” when sourcing the right deals in the consumer sector, and breaks down Advent’s definition of “luxury” investments and its consideration of consumer demographics.
The conversation also touches on exit options and value creation. “it’s relatively easy to buy, but we measure success by the exit,” says Chavanne. ”We get excited when we have what I would call multi-threaded exit optionality – you don’t want to be stuck with one way out.”
Following the interview, the editorial team return to discuss key takeaways, as well as what the Birkenstock [NYSE:BIRK] IPO means for consumer dual-track exits.
0:39 – Introduction
1:42 – Data round-up, consumer drivers and current processes
10:17 – Interview with Nicolas Chavanne of Advent International
11:40 – Executing with conviction in the current market15:47 – “Luxury” investments and demographics20:09 – Deal origination and gaining an edge: Examples from Zimmerman, Parfums de Marly29:02 – The universe of buyers and exit option33:44 – Consumer drivers and value creation38:35 - The role of AI in creating an edge41:34 – Key takeaways
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Amid a tough fundraising market with tight allocations and a slowdown in distributions, fund administrator Aztec Group’s managing director James Gow and head of innovation Tom Bennett bring their insights into capital raising and discuss the outlook for the year ahead.
Unquote Data validates the broader market sentiment, showing that a total of 33 buyout funds based in Europe had closed at the time of recording, a 48% drop compared to the equivalent period last year.
Leveraging Aztec’s market insights via partnerships with more than 450 funds since it launched in 2001, Gow and Bennet share their views on the ways both LPs and GPs are navigating the current environment in an interview with Unquote’s Ero Partsakoulaki.
Gow and Bennett offer an overview of the alternative pools of capital available to GPs and the positive sentiment around private credit strategies, as well as touching on the industry’s expectations when it comes to meeting fundraising targets, the importance of ESG reporting, and the democratisation of the private equity industry using technology and data.
0.30 – Fundraising market data
1.49 − Guest bios
3.02 – Interview with Aztec Group’s managing director James Gow and head of innovation, Tom Bennet
3.25 − Overview of fundraising environment
5.59 – Private credit market as a bright spot
7.36 – Industry expectations and flexibility around fundraising targets
9.34 – Alternative pools of capital
10.37 – PE’s perception of the retail market
13.02 – LPs & GPs perspectives on ESG data and reporting
16.07 – Demand for impact investing
17.00 – Tech applications in co-investing strategies
17.51 – Challenges and Opportunities for 2024
19.35 – Pockets of activity
22.00 – Aztec Group’s growth plans and future initiatives
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Funds editor Harriet Matthews hosts senior reporter Gustav Hoejmark-Jensen to discuss the role that emerging managers are playing in green technology investing. Hoejmark-Jensen explores the topic in an interview with Kim Pochon, senior vice president at Unigestion, and Laurits Bach Sørensen, co-founder and senior partner at Nordic Alpha Partners (NAP).
Pochon is part of Unigestion’s emerging manager programme, which aims to spot the next trends and next generation of funds managers and value creation models.
Through its emerging manager programme, Unigestion has been among the first backers of now-behemoth funds such as Carlyle, Permira, EQT and Hg, and it was also an early investor in managers such Archimed, Ambienta and Blackfin.
Pochon shares insights on the role of the programme in the emerging manger ecosystem, his views on the fund-of funds-market, and Unigestion’s approach to spotting future GP concepts. He also discusses the programme’s latest allocations and what made them invest in Nordic Alpha Partners’ new fund, focused on green tech growth buyouts.
Bach Sørensen discusses how NAP has overcome apparent challenges in the green tech and hardtech space via a highly operational and perhaps unorthodox approach to creating value, de-risking growth and rapid scaling of industrial green tech companies. Bach Sørensen also shares insights on the firm's latest strategic exit to US tech giant Tesla, after its portfolio company Wiferion experienced years of hypergrowth during NAP's tenure.
In the final part of the joint interview, Pochon and Bach Sørensen elaborate on the partnership between the two firms, with the editorial team returning at the end to discuss some key takeways from the conversation.
Founded in 2017 and now delivering CAGR of 78% on its debut fund, abating one million tons of CO2, NAP recently held a EUR 150m first close for its new fund, surpassing the volume of its EUR 126m first fund and attracting LPs such as Allianz Global Investors, Copenhagen Infrasturcture Partners, and Unigestion.
With a hard-cap of EUR 300m, NAP will continue to fundraise throughout 2023 for the SFDR Article 9 compliant second vehicle, Nordic Alpha Partners Fund II. The GP has already made its first deployment in Swedish-Polish photovoltaic developer Sunroof, alongside World Fund and Legal & General Capital.
1:39 – Challenges for GPs and LPs
5:55 – Interview with Kim Pochon of Unigestion and Laurits Bach Sørensen of Nordic Alpha Partners
6:14 – Unigestion’s outlook on emerging managers9:16 – Finding emerging managers11:30 – Why Unigestion invested in Nordic Alpha Partners13:55 – Nordic Alpha Partners’ outlook on deployment15:37 – Bridging the early-stage and growth green tech gap19:29 – Derisking and deal sourcing26:13 – Partnering with Unigestion30:40 – Nordic Alpha Partners’ Wiferion exit34:22 – Key takeaways
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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With the European private equity market back to business as usual after the summer, Mergermarket's funds editor Harriet Matthews and senior private equity reporter Rachel Lewis discuss what to expect for the rest of the year, with a guest interview from Chris Boycott, corporate partner at Linklaters.
Deal volume for the year to date stands at around EUR 58bn, versus EUR 216bn for FY 2022; meanwhile, down significantly at just 37% of last year's full-year figure, according to Mergermarket data.
Chris Boycott joins the podcast to share his outlook on private equity activity, discussing topics including the bright spots in dealmaking and gaps in buyer and seller expectations He also discusses the challenges that sponsors are currently facing, as well as the areas that are attracting sponsor interest in the current market.
Following up with some key takeaways from the interview, the team aims to reach a consensus on what Q4 and the start of next year might look like.
1:49 – Data round-up
4:18 – Market sentiment
6:56 – Upcoming processes
9:40 – Interview with Chris Boycott, corporate partner at Linklaters
27:12 – Key takeaways
32:00 – Pockets of activity
34:09 – Fundraising outlook
You can listen to the podcast HERE, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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Blackstone senior managing director Alex Walsh speaks to Unquote editor Harriet Matthews about his career in private equity, LGBTQ+ representation and inclusion in the industry, and the outlook on investing in the current market.
Walsh began his career in the financial services industry in 2004 and joined Blackstone in 2022, with a focus on private equity consumer and leisure investments. Beyond his investment team responsibilities, he is also a member of the firm’s LGBTQ+ inclusion taskforce, OUT Blackstone.
In an interview with Unquote, Walsh discusses how and why he got into the private equity industry, as well as how the industry has changed during this time.
He also discusses LGBTQ+ representation and inclusion in the private equity industry, including what workplaces can do to create an inclusive environment and how this fits with Blackstone’s overall ESG goals.
In the final part of the conversation, Walsh shares his outlook on the current market, taking into account the rising cost of capital and Blackstone’s approach to deal sourcing.
2:12 – Alex’s career trajectory and motivation
5:11 – Skills and experiences
7:32 – PE industry development
10:33 – LGBTQ+ representation development and inclusion
15:00 – Cementing inclusivity in the workplace
17:30 – ESG at Blackstone and its portfolio
20:18 – The macro picture
23:02 – Deal sourcing and opportunities in the current market
If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.
Theme music: ©2012 Kick Up The Fire
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