Private companies are feeling the burn. According to Dealogic, IPO volumes are the lowest they’ve been since 2009, totaling $5.1 billion year-to-date and causing company CEOs to apply Factor 50 sun protection inside the office – as well as on their summer holidays – as they look to ride out the market volatility. The extent of the IPO freeze – to continue the seasonal reference – puts 2022 at risk of being one of the worst ever years for exchange listings. Many will be hoping that inflation calms down and the markets regain a spring in their step; otherwise it could be a winter of discontent.
South Korea is fast becoming the life and soul of Asia’s private equity industry.Deals rose 100% in 2021 to nearly $30 billion and its buyout market has assumed “disproportionate importance” according to Goldman Sachs. Like any good party, the right ingredients need to be in place. Rather than good music and a finely stocked bar, South Korea boasts a strong financing environment, a slew of global conglomerates and plenty of family-founded businesses that must be music to GPs’ ears. Korean private equity groups are coming of age. The stage is set for them to take on their global peers and showcase the country’s VIP credentials.
Expect to see a flurry of Gulfstream jets flying in as managers expand their network.Macro fears and the performance of equities and bonds are pushing Middle East investors to bridge the gulf in private markets expertise and increase their number of strategic partnerships. According to a new study by Invesco, sovereign investors look set to forge further ties with PE, infrastructure and real estate managers over the next five years as they look beyond the region.
Warren Buffett’s protégé, Tracy Britt Cool, honed her finance and business expertise on the family farm.Now she’s hoping that some of the companies she invests in at Kanbrick – her new investment firm – will turn out to be geese that lay multiple golden eggs! Key to that be taking a long-term commitment to partnering with family-owned companies and providing them with a safe home in which to thrive. This will be no cattle auction, though, where companies are bought and flipped. Expect to hear a lot more about Kanbrick as it channels its animal spirit over the coming years.
The valuation bubble in some areas of the VC market has popped, drenching US endowments, including the ones belonging to the Ivy League, in potential losses as market writedowns begin to take effect. Endowments will be hoping for a quick clean-up, with some pushing GPs to mark down the value of investments rather than kick the can down the road in the hope of a market rebound. Private equity has basked in the rays of stellar performance for years. Today’s valuations, though, look like raining on everyone’s parade.