Meme - Time to celebrate another great performance

OutsTAAnding performance

News, WEEKLY SPIN

TA Associates Management will be waiting for their laurel crown and gold medal following confirmation they generated the best returns for investors in 2022. This is according to the annual HEC¬-DowJones Private Equity Performance Rankings which features more than 560 large PE firms. That the tech-focused PE/VC firm are top of the charts is an impressive achievement at a time when some investors may have concerns over tech deals and valuations. But given that four of the top five performing firms this year have as much exposure to technology, media and telecommunications as any other sector, seems to suggest that there is still plenty of value to unlock. TA Associates are the leaders of the pack, and should be congratulated. But there will be plenty of other GPs looking to steal their glory and earn their own position on the winners’ podium next year.

inspired by S&P Global

Meme - Zwift team in training to hit subscription target

Wheel of fortune

News, WEEKLY SPIN

With $620 million in recently secured capital from the likes of KKR and Permira Holdings, the at-home cycling fitness app, Zwift, is looking to step it up a gear in 2023.With a market valuation now in excess of $1billion, Zwift is hoping to move through the peloton to the head of the race, using the investment to push towards 10 million subscribers and steal a march on its rival, Peloton. The end goal is to achieve a public listing. It goes to show that with the power of PE capital, there are still plenty of innovative companies to get behind and push them over the finish line. No doubt the Zwift team will be spraying plenty of champagne if they hit their subscription target!

inspired by Bloomberg

GIF - Keep calm and carry on…investing

Carry On Investing

News, WEEKLY SPIN

One of the key messages that came out of IPEM 2023 at Cannes last week was that allocators are trying to maintain their commitments to private markets, despite concerns over higher interest rates. Rather like walking a tight rope, LPs are taking a ‘steady eddy’ approach and appear to be continuing to allocate to PE funds as diligently as ever. This is not the time to be thinking about skipping a vintage and regretting it in years to come. Disciplined deployment appears to be the name of the game, and while fundraising is expected to take longer, GPs might at least take solace in the LP mind set of “keep calm and carry on investing”.

inspired by Private Equity News

Meme - No rush. I’m a patient bear.

Patience is a (value-added) virtue

News, WEEKLY SPIN

Highly levered PE funds and those looking for a quick exit strategy in 2023 might find their plans hit the skids, as challenging macro conditions compel GPs to hold on to companies for longer. This will require PE fund managers to stay patient and show investors their true worth as value-add specialists, potentially revealing those who relied upon cheap debt and high leverage in previous years to magnify returns. Private equity has always been a long and winding road, so this is unlikely to faze seasoned veterans well used to navigating exit roadblocks. This year could be the time when value creation starts to separate the winners from the losers.

inspired by S&P Global

Meme - A new dawn for tech investing in Pacific Northwest

Battle in Seattle…?

News, WEEKLY SPIN

Investment firms are choosing to establish a footprint in the Pacific Northwest attracted by the allure of tech investment opportunities in Seattle.The private arm of Steve Cohen’s Point72 hedge fund, Point72 Private Investments, is in the process of setting up a new office and as more investors flock to the city, there could end up being a tech VC battle in Seattle over the coming years. In 2021, the city – home to global names including Microsoft, Amazon and Starbucks – attracted $9.2 billion according to PitchBook. Although those figures appear slightly lower for 2022, there is a growing feeling that Seattle has plenty of further investment potential. Rather than risk missing out on the next big tech winner and becoming Sleepless in Seattle, investors are hoping that a local presence will help their portfolios soar like the Seahawks.

inspired by GeekWire