Yearly Archives: 2024

Expansion Theory

A new report by PitchBook forecasts that private markets could grow to $20 trillion by 2028, potentially even reaching $23.7 billion in a good case scenario. Private markets already control $14.7 trillion in assets, having grown at an annualized rate of 12.8% between 2012 and 2022. If the forecast proves accurate investors might find they’re going to need an even bigger boat to go fishing, as they increase their fund allocations, with private equity, private debt and real assets all expected to expand. VC and real estate less so. Private equity is forecast to grow from $5.3 trillion to $8 trillion, with buyouts leading the fundraising charge. Secondaries are also expected to play a key role in this expansion theory, growing from $462 billion to more than $700 billion. The private markets universe continues to boom it seems, but much will depend on the prevailing macro environment. Could we witness further stellar performance? Grab your telescope and watch how things unfold!

Inspired by PitchBook

Bravo Bravo!

Cambridge-based Darktrace, a leading cybersecurity and AI company, has agreed a $5.3 billion sale to Thoma Bravo. The company’s decision to leave the FTSE250 and go private is a blow to the UK but America’s gain after Thoma Bravo offered a 44% premium on its three-month share price. Cue round of applause and standing ovation! The pace of innovation in cybersecurity and threat detection is rising. Both parties clearly detect that this is a relationship with plenty of potential for future growth. There may well be trace elements of envy among Thoma Bravo’s peers.

Inspired by The Guardian

Oil be back

We hear you but we’re not quite ready. That seems to be the message coming from Norway’s government, who have decided to not yet allow the country’s Oil Fund – one of the world’s biggest SWFs – to invest in private equity. The fund’s investment manager, Norges Bank Investment Management, headed by CEO Nicolai Tangen, believe that this is a good time to begin allocating to private equity. But it’s not as though the government have given NBIM the cold shoulder…the fund’s management team have developed plans to add up to EUR64 billion of private equity investments over the next decade. So for now, it is a waiting game. Global PE groups will be hoping it’s not too long. In the (almost identical) words of The Terminator: “Oil be back.”

Inspired by Investment & Pensions Europe (IPE)

To Do List(ing)

CVC Capital Partners are hoping it will be third time lucky as they prepare to float on the Amsterdam stock exchange. The IPO will see one of Europe’s largest private equity firms is setting its sights on a valuation of between EUR13 billion and EUR15 billion, which if successful, would help CVC raise EUR1.25 billion in equity. Geopolitical turmoil has twice disrupted the PE firm’s plans to float. Following the IPO, CVC will join the likes of EQT and Bridgepoint as listed European PE groups. As the infamous crypto meme likes to say, ‘To the moon!’

Inspired by the Financial Times

Sealed with a KISS

Pophouse has sealed its latest deal with a KISS. The Stockholm-based entertainment and music investment firm established by EQT founder Conni Jonsson 10 years ago with ABBA’s Bjorn Ulvaeus has bought the legendary US rock band’s catalog in a deal estimated to be over $300 million. The acquisition will see Pophouse use its proven playbook to bring fresh new experiences to KISS fans new and old. Part of this will include a digital show using KISS avatars on stage, as Pophouse has done to great acclaim as the founding investor in the ABBA Voyage live show in London. Gene Simmons and the rest of the band will no doubt be popping the champagne as global music artists continue to monetize their music rights. As the band famously sang, these are ‘Crazy, Crazy Nights’.

Inspired by Pophouse