3 questions for the IPEM Community
During IPEM Paris 2024, we asked Private Markets experts from around the globe to share some industry insights by answering a few questions…
In VC We Trust
European venture capitalists are preparing to hit the boost button as they partner with the European Union to support technology investment. Far from being ‘tin eared’ the EU is all too aware of the need to accelerate tech innovation in order to avoid lagging too far behind the US and China.
Going with the flow
Private credit managers will doubtless be extending a debt of gratitude to investors for their continued commitment to investing in the asset class. According to Moody’s research, fundraising is going from strength to strength, with inflows up 72% over the last 12 months. AUM has also risen 8% in the first six months of 2024, putting private credit at the head of the pack and giving plenty of reason for fundraising teams to celebrate. As more investors get behind the 8-ball, private credit is proving to be the most resilient alternative asset class in the current macro environment. Asset managers are getting on board to meet this demand, including BNP Paribas who launched an evergreen ELTIF this week. Right now, private credit is ‘going with the flow’.
Ares prepares NFL splash
Ares Management is hoping to make a big splash in the NFL with news that the global private equity firm is reportedly looking to acquire a 10% minority stake in the Miami Dolphins. The deal also includes billionaire Joe Tsai, co-owner of the NBA’s Brooklyn Nets and the WNBA’s New York Liberty, who would receive a 3% ownership stake. This could be a huge catch as the deal also includes the Hard Rock Stadium and the Miami F1 Grand Prix race. This development follows recent news that the NFL had agreed to allow outside investors to take ownership stakes in what is one of the world’s most highly lucrative sports leagues. More NFL teams will doubtless be looking for their own liquidity events in the coming months, as private equity firms go on the offense and make a bid for their end zone celebration.
Ready>Set>Co(invest)
CalSTRS is getting ready to Go Go Gadget its co-investment arms after the pension’s investment committee agreed to remove the provision for third-party approval on co-investment deals under $250 million. The decision comes as CalSTRS seeks to incorporate more co-investments and direct investments in its private equity portfolio. This will help investment staff move into higher gear and act quickly to close on deals without needing to wait for external valuation approvals. The decision is likely to signal Lift Off for the US pension plan, which has already constructed a platform in excess of nearly 100 deals. With more speed and agility at their disposal, the race is now on to seek out the best GPs to partner with.