IPEM Cannes 2024 – The Daily Spin – January, 25th
The shifting role of LPs was the overarching theme for the morning session of Day 2, at the 10th edition of IPEM in Cannes. After a full day of yoga,…
Against the iconic Eiffel Tower, symbolizing strength and resilience, IPEM Paris 2024 will gather industry leaders to dive deep, debate fiercely, and, most importantly, forge ahead with confidence!
Executive Chairman
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PARTNERS GROUP
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Steffen Meister is a Partner of the firm and Executive Chairman of the Board of Directors of Partners Group. He is Corporate Development Committee Chairman, Investment Oversight Committee Chairman, and a member of its Client Oversight Committee and Operations Oversight Committee. Steffen Meister has been with Partners Group since 2000 and served as Delegate of the Board from 2013 to 2018 and as CEO from 2005 to 2013.
Partner and Head of Europe
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APOLLO MANAGEMENT
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Robert Seminara is Partner and Head of Europe at Apollo and is also a member of the Firm’s Leadership Team. Prior to joining Apollo in 2003, Rob was in the Private Equity group at Evercore Partners and previously at Lazard Frères & Co. in its Media & Communications group. He is a Member of the Board of Novolex and Metal Can Corporation. Rob graduated from the University of Pennsylvania’s Wharton School of Business with a BS in Economics.
Co-Head Global PE
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KKR
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Pete Stavros joined KKR in 2005 and currently serves as Co-Head of Global Private Equity, including oversight across Europe, Asia and the Americas and covering traditional large and mid-cap private equity, impact, core and growth equity. He is a member of several KRR investment and management committees and has also served as Co-Chair of the firm’s global Inclusion and Diversity Council. As an investor, he has helped lead a number of successful investments across sectors and sizes.
Head of NB Alternatives
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NEUBERGER BERMAN
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Anthony Tutrone is the Global Head of NB Alternatives and a Managing Director of Neuberger Berman. He is a member of all Neuberger Berman Private Equity’s Investment Committees, and member of the firm's Partnership, Operating, & Asset Allocation Committees. Prior to Neuberger Berman, Anthony was a Managing Director and founding member of The Cypress Group. Anthony earned an MBA from Harvard Business School and a BA in Economics from Columbia University.
Our Sponsors
If uncertainty was a watchword for 2023, investors have chosen resilience and cautious optimism to navigate the global investment landscape in 2024. LPs are forging a deeper focus on liquidity, revenue growth and margin expansion. They are presented with opportunities across a maturing private debt market, thriving secondaries market and infrastructure market with resilient cashflows and uncorrelated inflationary nature. Diversification is providingc. Have challenging fundraising conditions provided the best time to invest? With deal volume shrinking, performance declining and valuations falling, where are the best opportunities?
Presentation with Christian Lundblad
Panel Session
Interactive debate in the room (slido polling)
LPs have fled to known names and stuck to larger funds, amidst a pullback in capital commitments. What is driving LP allocations in private markets? Which asset classes are attracting capital? At the same way we are seeing a reset, LPs pausing investments and going back to basics applying an investment discipline mindset? Will ideological flexibility and innovative value creation be a new chapter in the LP playbook? This interactive roundtable discussion will invite LPs to share their views on the market, where and why they are currently accelerating their private capital allocations – and where they are pausing.
While private funds and their investors have enjoyed the fruits of a bull market, the recent spike in inflation and increasing interest rates are creating market volatility. This LP only session discus's portfolio construction challenges, asset allocation, diversification, investment pacing, and exposure management. What factor has had the most impact on portfolio risk and return in 2024? And how will private capital fit into asset owners’ global allocations in the future.
With higher interest rates and cost of capital came investors’ higher return expectations. Can private capital continue to outperform public markets? What influence does fund size and vintage make? The panellists discuss the factors that will influence LP allocation and fund manager selection in the new normal era.
Are we beginning to see the balancing of goals and returns in sustainable investing? Where are the success stories today? Is sustainability investing more than just ethos – and poised to grow even more and deliver expected returns? This session explore the role of private markets in building a robust, sustainable investment strategy.
Markets experienced a liquidity crunch, in traditional alternatives-real estate, private equity and infrastructure. Are LPs viewing private equity secondaries as the golden key to liquidity? Are GP Led secondaries a new tool in the investor toolkit? How resilient will private debt prove to be moving into 2025? This session will tackle latest market developments and practices and foster LP debate!
LPs are in the driving seat; is the balance of power is more even now? Will LPs drive the conversation on fees, it is working in their favour? Are terms being led by the LPs vs the GP? Is governance in the spotlight? Are we in a new era, how will LPs work together to exercise their collective power? In this session LPs will share their experience and discuss whether the pendulum has shifted.
Join us for an exclusive lunch dedicated to our esteemed LPs, by invitation only.
The IPEM Lounge is open to all Exhibitors, Elite Pass holders and LP's
Kick off your meetings starting Monday, the 9th, in a relaxed and inviting atmosphere. Don't miss out on this great opportunity to connect and collaborate!
Join us for the offical opening party for IPEM Paris 2024!
https://www.annettek.fr/contact-annette-k/
Open to all pass holders: Enjoy a complimentary first drink, followed by a cash bar until 11 PM
Sponsored by
How do I get there?
> Port de Javel Bas, 75015 Paris
Metro line 8, Balard station and metro line 10, Javel station: 10mn walking distance
RER C, Pont du Garigliano station: 1mn walking distance
Public car parking nearby
> from the Palais des Congrès? To access shuttles, you will need to present your color-printed pass!
There will be a free shuttles service to Annette K, from 6:30 PM to 8 PM.
Shuttle service meeting point: entrance of Le Méridien Étoile Hotel
How do I leave Annette K? A taxi station is set up at the exit of the venue.
Antoine COLSON, IPEM
Private markets are going through a seismic shift, macroenvironment and geopolitical forces have created a new normal for the investing landscape. Last year was dubbed the most anticipated recession in history, which hasn’t happened yet. Will private, markets escape these months of turmoil with nothing worse than a soft landing? Are investors reviewing their investment outlook and investing principles with a sense of cautious optimism? How is geopolitical risk demanding GPs to develop a clear-eyed, pragmatic appraisal of where each portfolio company sits in terms of its return profile, its capital structure, and its prospects?
Presentation
Today business conditions are more disjointed than usual, interest rates have risen faster than at any time since the 1980s, and it remains unclear when the US Federal Reserve will reverse course or where rates will eventually settle. Last year was dubbed the most anticipated recession in history, which hasn’t happened yet. Instead, the economy is chugging along nicely. Will private, markets escape these months of turmoil with nothing worse than a soft landing? Given the turbulent geopolitical backdrop, will consistency of performance through cycles be in sharp focus for LPs?
Global fragmentation has picked up pace as trade blocs form behind the world's two largest economies. But what does this mean for investors? Global supply chains suddenly look precarious; the fragile bonds of globalization have become more strained. Global conflicts have intensified tensions further, and economic behemoths America and China now find themselves on opposing sides. The build-up of a new dry powder record, sluggish dealmaking and lack of exit activity has all put a premium on liquidity. How are GPs managing the increased complexities in a rapidly changing world, whilst remaining agile, innovative and efficient?
Interview
Investing in turbulent times has challenged the investor playbook. In an uncertain macro environment is it possible to remain committed to one's investment philosophy? Delivering superior investment results in an inefficient market is built on knowledge advantage, specialization, relentless skill and effort vs timing the market, do you agree? In this session our interview shares his experience of investing through cycles and remaining consistent and committed to an investment thesis.
Diversification, discipline, and durability are these the secret ingredients to being a successful all-weather investor. How are today's investors contending with impacts from headwinds to topline real growth, margin compression, and a structurally higher cost of capital resulting from higher interest rates? Can investors reap the rewards of patient capital whilst pivoting towards an innovative investment approach?
Interview, Bertrand Rambaud, chairman, France Invest
A long-term asset class by essence, private equity is used to navigate through up and down cycles. Its roadmap has no reason to be bent by the political upheavals shaking up France. Given the challenges (decarbonation, IA, value sharing schemes, etc.) entrepreneurs have to face, PE firms should seize the opportunity to assert themselves as their most effective “sparring partner”. During this session, France Invest will go over the competitive advantages of France on the European scene and the need to give the market players a stable and predictable business environment.
From niche sectors to innovative investment strategies: what are specialist managers offering LPs ? Are investors pursuing more targeted fund exposure and is this driving interest in sector specialisation? What strategies are getting more traction and capital in the current market? Transacting through cycles: how are specialist GPs managing the specific dynamics of their industries and succeed in their chosen markets?
This session discusses the exponential growth of the private credit market and answers questions on whether private credit is too good to be true. Favourable regulation and a "Goldilocks economy" turbocharged private credit forward to this point. Will it be able to sustain its momentum, or will growth be undermined by competition, higher interest rates, and the threat of inflation? Are the risks from the private credit market being ‘dialled up? Primary credit markets: size, structure, pricing: what do LPs need and what can credit markets offer?
European mega-funds—vehicles of €1 billion or larger—secured record amounts of capital last year, according to Pitchbook. Macroeconomics headwinds pushed LPs toward established managers with proven track records over smaller funds. The result was fewer but larger fund closes. According to analysis, there is a record US$1.1 trillion of uninvested dry powder sitting in buyout funds, with buyout firms also holding a US$2.8 trillion worth of assets in portfolios. There is mounting LP pressure on managers to transact, has this been a factor in pockets of increased activity in 2024?
Climate investing is shaping up to be a generational opportunity. Are we seeing GPs adhere to best practices for ESG integration, measurement, and reporting? How are investors aligning their objectives with broader sustainability goals? Has the consensus of commitment to climate investing in Europe vs the US become polarised? Has climate and ESG become wholly politicised? Will climate investing be split between the believers and non-believers? Are we seeing carbon pricing consistently into asset valuations?
Fireside Chat
The interviewee shares a deep dive into investing through cycles, the rise, the peak, the dipping and bottoming out stages. He shares his experience of investing through cycles – and shares the number of cycles he has been investing through at Ardian. He shares the secret to forging confidence, we will hear what principles the interviewee lives by when it comes to investing for the long-term and keeping investors on committed.
The panellist shares their thoughts on the role of private capital in the new era of capital formation and mega trends. How interest rates, valuations, leverage, liquidity, infrastructure and secondary funds made headlines news in 2024. What is the new value creation levers that GP need to add to their toolkit? Are LPs focused on building and sticking to existing relationships, if so, what can emerging managers do to catch their eye? Will sector specialist funds benefit from the mega trends: Low carbon economy and AI and digital transformation?
Introduction Panel: Back to School
The intense flow of capital is over, VC who neglected their own investment philosophies are going back to basics and focusing on risk adjusted returns as well as intrinsic and extrinsic risk. Will the reset encourage healthier valuations and disciplined investors and industry as a whole? The session will discuss how demonstrating a path to profitability, first class team and solid internal process will be the key to securing returning capital from LPs who may look for new opportunities.
Panel Session: Race for Scale and Renewed Growth
Fragmentation, market concentration, and new competitors—can make the growth equity market challenging and complex. Will LPs need to adopt a differentiated approach to understanding the market dynamics for different technology and software subsegments? Will opportunities in more mature industries and taking a speculative approach to less mature sectors be a winning strategy? This session will look at how can investors identify companies that the market has not yet fully recognized with solid competitive structures and with a potential for structural growth of profits and cash flows that is above average.
Panel Session: Investing wisely and the AI Frenzy
What question do investors need to be asking, how will AI affect our portfolio companies? Which business models will change, and what new opportunities will present themselves? How do we adjust diligence criteria for future investments? Are there ways we should deploy generative AI to improve our own internal operations? Act wisely Generative AI is poised to become a transformative technology, VC investing needs to ensure that this money is being deployed in a responsible way, is the industry fulfilling its duty?
Panel Session: DeepTech investors needed
How are LPs assessing risk in key enabling technologies? What are the bottle necks that investors are facing in DeepTech? Will high credit risk be an ongoing challenge for DeepTech? Is Europe well-positioned to address massive disruption across hardware process, quantum computing, as well as some climate tech-hydrogen and carbon removal, capture and storage and nuclear processes? The panel share their views on the future of Deep tech investing in asset allocator portfolio and debate whether it is becoming a mainstream destination for corporate, venture capital, sovereign wealth, and private equity funds.
Conclusion
The hottest segment
Infrastructure assets provided both a downside cushion in uncertain economic times and a risk-mitigated, collateral-based way to buy exposure to secular trends with high growth potential. Which asset classes were trailblazers in 2024? Did decarbonization, digitalization, reshoring and social infrastructure emerge as winners? The longer-term secular trends such as the energy transition and digitalisation will shape investment opportunities in 2024 and beyond. Will the complexity of the outlook play to the strengths of infrastructure investors that are able to navigate the opportunities and risks in their preferred market segments?
Assessing the infra investment gap
The infrastructure investment gap is a burning issue in both developed and emerging economies. With the limitations of public funding, the massive needs in telecommunications, data, energy transition, electrification, mobility, supply chain, healthcare, education are laying ground for bonanza decades for infrastructure investors… How should LPs and GPs position themselves and capture the opportunity?
Mapping Infra and Real Assets returns
Comparing the risk/returns profiles of Core, Core-plus and Value-add infrastructure. How is investment approach changing from an investor perspective? In terms of a return profile, what was acceptable 4 years ago, is no longer acceptable. How are GPs addressing this scenario?
Mega vs Niche Fund Trend
While the largest diversified funds still rule the pack, capital is increasingly flowing to vehicles with singular investment focus. Demand for real assets is underpinned by megatrends which persist throughout market cycles, allowing investors to develop forward-looking investment strategies. Is the industry seeing an increase in specialist funds and growing expertise from GPs outperform generalist in the past few years? Are niche funds delivering portfolio “edge” created by sector and strategy diversification? Are specialist funds driving infra mid-market LPs highest investment convictions?
Whilst critical minerals are at the heart of digital infrastructure, energy transition and transport electrification, yet is massively overlooked opportunity by investors. What do specialised funds need to do to change the perception of the asset class?
Mid-day wrap-up
Nurturing Next Gen GPs
This is the first year that IPEM hosts the emerging manager pitch fest, but we have been long term supporters of first-time managers and have been building relationships and connections between LPs and emerging managers.
In 2024 fundraising has been difficult and slow, but it is significantly more challenging for emerging managers. The bar for success is higher than ever in today’s market dynamics- valuation uncertainty, LP overallocation and aggressive competition from the established firms raising more products. The challenge of choice has never been tougher for allocators and for GPs looking to stand out; it takes time and a big focus on relationship building.
Gaining the confidence of risk-averse LPs requires extra diligence and the ability to showcase track record but also optimising your choices to be “LP-friendly” and tax favourable and being intentional about creating a LP network and audience.
Pitch fest 1: Venture Capital
Pitch fest 2: Private Equity
Beyond the niche
Has impact investing matured gradually from a niche concept to a mainstream investment strategy? Is it becoming a must have, are LPs asking for data and materiality? Are we seeing the convergence between climate risk analysis and traditional invest risk analysis? This session explores the complex relationship of impact outcomes and investment returns.
Mainstream impact funds: are we there yet?
What are the systemic risks and opportunities for the impact investing market? What sectors are getting funding, and which aren’t? Is the age of the generalists over, and will we only see more specialisation in the market?
LP-GP discussion: Engaging about impact, what LPs want in an impact fund
Are GPs focusing on comprehensive impact assessment frameworks when pitching impact strategies to investors but focusing less on action and quantifying their intentionality? What are the allocation preferences of LPs in 2024 and beyond? How are allocators filtering managers? What happens to carried interest if a goal has not been met during a year in the lifecycle of an impact fund? How influential are impact labels, articles 8 or 9 classification, SDG meeting criteria or thematic buckets in the investment decision?
The promise of impact in emerging markets
Impact investing was probably pioneered first in emerging markets; what lessons can investors learn from it? Has impact been delivered alongside financial return? Did some approaches or segments deliver better than others? Which regions have attracted LP capital? Which asset classes have seen the most growth in emerging markets?
Investing in education and social inclusion
Though the lack of investment in education remains an issue, there are pockets of promise – especially as impact investing is gradually gaining momentum. Social challenges are also visible everywhere, in developed and emerging markets alike. Is private capital well positioned to fix them? Are there already compelling examples – and how did they deliver on expectations?
Conclusion
Key Investment Themes in Infra and Real Assets
Consolidation continues to be a major theme in the asset class; average fund sizes have grown over 55% since 2019 to surpass $1 billion in 2022 and 2023 (Preqin). Geography has played a key role in infrastructure and real asset investments. Analysing the performance of key economic regions: what are the respective challenges and opportunities for infrastructure investments? Has the effect of IRA on capital deployment driven capital allocation towards the US market and away from Europe?
Digital Infrastructure
What are the biggest challenges when developing digital infrastructure projects? How is the increased competition for digital infrastructure assets impacting the investment approach? Datacentres and smart grids in the spotlight. How are market players addressing an increased demand for power? Has the voracious demand for capital to finance digital infrastructure growth projects—particularly greenfield data canters and fibre buildouts, attracted a broad suite of investors? Will infra debt funds continue to lead the financing of this asset class?
Social and Healthcare Infrastructure
Are PPPs still an answer for social infrastructure? From healthcare and social assets: where do we find the most attractive returns? Assessing blurred lines between social infrastructure and real estate. Which asset class does social infrastructure belong to?
Renewables Infrastructure
Renewable energy and infrastructure have converged to a point where they have become synergetic. Does investing in renewable infra offer investors diversification and risk reduction of the overall portfolio, stability of distributions, inflation protection and low volatility?
Electrification/Grid Infrastructure - There is no transition without transmission
Are investors waiting for the emergence of long-duration energy storage technologies to support the widescale deployment of renewable energy sources? When is it Long-duration storage “going to happen” and what does the government need to do to make it happen? Are private markets filling the finance gap? Will we see a growth in PPA?
Conclusion
Introduction: Pioneering Spirits
The golden age of the leveraged age took place in 1980s when players like KKR and Milken engineered large LBOs . consolidation or ‘buy and build’ investment strategy, which sought to combine the best of of venture investing with the best of leveraged buyouts by investing in a ‘platform ‘businesses. Ever since the dot-com-crash and subsequent recession 200-2002 investors disillusioned with stocks started pouring their money into tangible assets, mostly real estate. Fast forwarding present day most common private equity strategies are –VC, growth capital, LBO, private credit strategies, distressed and special situations, real estate, infrastructure, secondaries and impact investing have largely been born in the USA.
US Market Overview
North America-focused mid-market funds amassed an aggregate of $44 billion in 2024, according to Preqin data. Despite sitting on unprecedented capital, investors remained cautious, awaiting reductions in asset valuations to reflect cooler demand and tighter financing Has US deal sourcing been interconnected to macro trends? Has sector specialization become a key consideration in manager selection? With credit continuing to be expensive, will investors need to be creative, focusing on smaller deals or minority investments, and potentially increasing equity checks? Has 2024 been the year of carve-out investors? Has value creation been bought to the fore?
US Growth Equity Opportunities Amidst Dislocation and Disruption
The fundraising environment is seeing green shoots in 2024 and growth equity investment is powering part of that trend. Which sectors are growth-stage companies reengaging fund managers and their investors in? Which secular growth trends are offering unique opportunities for LPs? In the current environment has growth financing terms become more favourable to investors? What terms are growth equity investors seeking in the current market, both to bridge valuation gaps between companies and investors and to correct potential misalignment between new and existing investors? Are managers placing a substantial premium on strong revenue growth, meaningfully increases a company’s access to future capital in both private and public markets?
US mid-market champions
How has the competitiveness of the mid-market evolved over the last 12 months in the US? Currently, where are the main pockets of opportunity in the mid-market? How will M&A activity contribute to the growth of the mid-market? How does the risk/return profile differ when comparing the upper and lower segments?
Opportunities in the US private credit mid-market
Impact of high borrowing costs and shrinking net interest margins: how is the middle market faring? Where are we in the credit cycle? How might portfolios withstand a downturn? What are some of the biggest challenges being faced by private credit funds currently? How much of a role will private credit continue to play in financing the middle market once rates normalize and public markets rebound? Is the mid-market more vulnerable to increasing portfolio stress?
Conclusion
Join us for an engaging discussion on the approach LPs should expect GPs to take in managing cyber risk within their investments. This session will delve into strategies and best practices for cybersecurity risk management in portfolio companies. You will also hear directly from a portfolio company about how these programmes add value by safeguarding investments and enhancing overall portfolio resilience.
Video Games | by SELL/SNJV
Growing interest and innovation in private markets has seen the introduction of new fund structures. This short workshop will focus on semi-liquid funds, present their benefits and challenges, how they compare to traditional closed-end counterparts, their role in the portfolio and current relevance in the market and, finally, we will highlight current evergreen opportunities.
StepStone Group is a global private markets investment firm with $678 billion of total capital across private equity, infrastructure, private debt and real estate, including $157 billion of assets under management.
“ETFs are step one in the technological revolution in the financial markets… step two is going to be the tokenization of every financial asset” - Larry Fink, Blackrock
Following the approval of Bitcoin ETFs and mounting institutional adoption (Blackrock, Fidelity, Goldman Sachs), many investors are wondering how to approach crypto and digital assets in their alternative portfolios. At this IPEM breakout session hosted by Cathay Innovation (one of the largest multi-stage VC funds in France and one of the only funds authorized to invest in tokens), investors will have the opportunity to learn everything they need to know about this emerging asset class and how best to integrate it into a diversified alternative investment portfolio.
STNL Advisors
A Live Demo of Generative AI's Strategic Role in PE
Google Cloud
US life insurance secondary market | by Carlisle
Network Power : IFFO, the new international federation of family office
The IFFO - International Federation of Family Office, is an international federation that aims to bring together associations or groups of Family Offices from all countries. It is an organization serving Family Offices, and thus the sustainability of large family fortunes and enterprises, with the goal of promoting the emergence and cohesion of an international network of Family Office professionals through the sharing and development of methods, best practices, and experiences across borders.
IFFO helps Family Officers in a country to form a national association if one does not exist, and facilitates exchanges between associations from different countries to share their respective experiences in managing their associations, resources, and activities offered to their members.
Keep the conversation flowing after a businnes day with a glass of wine/beer in hand.
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Join us for Next-Gen Karaoke at the Le Méridien Étoile Hotel. Sing your heart out and challenge your peers!
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By invitation only
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Where are investors looking for opportunities in the current climate: How are LPs approaching new investments and what do they need to see from GPs when deciding where to allocate-regions, sectors, strategies? Are LPs evolving their approach to manager selection and due diligence? Co-investments, secondaries, credit – how are LPs working with their GPs to optimise returns and unlock liquidity?
IPEM Allocation and Fundraising Trend Report 2024, data reveals that more than 45% of funds available overall are likely to find their way to new allocations. Private Debt and Real Assets, where above 50% will be focused on new GP funds versus re-ups. New asset allocation was also directed into Fund of funds and secondaries.
Managing and updating portfolios in an era of volatility, balancing liquidity with asset allocation goals will be a science in the coming years. Evaluating portfolios against target allocations now face an equilibrium conundrum – if and how to rebalance and whether there is sufficient liquidity to do so. Will the performance gap between top and bottom-quartile funds widen? Will LPs be striking a balance between caution and risk in the manager selection processes to make the right choices for the market cycle ahead?
Private capital money management industry has grown at the speed of light. Between 2017 and 2022, private market firms' combined AUM grew at an annual rate of close to 20%, according to McKinsey & Co. Private capital total assets AUM is expected to double to $23.3 trillion by the end of 2027 from $11.7 trillion as of June 30, 2022, a Preqin analysis shows. The differentiating factor between the winners and losers will place the investors who were early to identify the 'next big thing' right on top.
The post-pandemic years have been frantic for private equity investors, with record number of deals, sky high valuations and cheap loads of leverage. The consecutive surge of interest rates has been a tipping point and bringing a very challenging deal, exit and financing environment for buyouts. How will the 2020s vintages be remembered in hindsight? How will LPs and GPs have navigated them?
On the back of tightening liquidity and a slowdown in distributions and fundraising, are we seeing an increase in LP appetite for innovative fund strategies? NAV financing, dividend recapitalization, GP led secondaries and continuation vehicles have shone bright in 2024?
With barriers to entry falling, alternative and private assets are set to become increasingly important in high-net-worth investors’ portfolios. The retail segment is a multi-trillion-dollar market largely untapped in private equity. Can we expect to see fund sizes continuing to grow and get larger in the next ten years? How is the retail market evolving and growing? Where is the innovation coming from? How are wealth managers and advisors working with private investors to help them understand the dynamics of the equity landscape? What structures, strategies, and sectors are best aligned with the risk-return profile of the retail investors? Are open-ended structures playing an important role in democratising private market assets?
Overview TBC
Good governance is regarded by many as an existential threat to managers. Clear and transparent disclosure will be an imperative in the coming years, the industry will need to focus on good stewardship of capital for investors. Transparency will continue to be a focus for GPs due to increasing regulatory pressures. Governing bodies continue to keep a close eye on the industry. This session looks at what short term structural shifts and long-term regulatory changes will impact the industry in the coming years.
Astronauts, having firsthand experience, understand better than anyone the critical role space plays in our collective future. As more actors engage in the space sector, we are entering an era where space is increasingly recognised as a new investment asset class in both public and private markets. Looking ahead, investment and public interest in the SpaceTech domain will continue to grow. Space is becoming the digital infrastructure that will allow us to map, monitor, manage, and connect our planet, bringing transformative changes similar to those brought by railroads or the internet. This is a multigenerational investment.
The stagnant M&A market has impacted LP liquidity levels as they wait for distributions. LPs continue to pour capital into secondaries funds, emerging as a bright spot in a broadly chilled fundraising climate. In 2023-2024 LP-led deals comprised the majority of secondary market share, the rapid growth in the market can largely be attributed to the substantial rise in GP-led transactions, is there any end to this growth?
In this session LPs share the burning questions they wish; they had asked GPs at the DDQ stage. LPs get under the bonnet, what questions did they never ask that have come back to haunt them?
Closing Remarks
Keep on growing
How long will non-bank lending last? Which players can scale deal size and deal quality? Is the opportunity set across European direct lending in trouble as the market acknowledges the economic headwinds of interest rates, geopolitical tensions and cyclical risks?
More opportunities for private debt to come
Will private credit continue to perform as strongly as in recent years? Are we reaching the ceiling for the private credit market? Which macroeconomic factors could contribute to the decline of private credit? Are investors as excited for the future of the asset class as they were a few years ago?
Mapping the private debt asset class risk return profile
Identifying compelling investment opportunities: How is the market cycle developing and how big is the private debt opportunity likely to be? Where are investors deploying opportunistic capital and which markets are defensively positioned? What is the risk/return dynamics of considering strategies that offer a wide variety of privately sourced investments?
Building a private debt portfolio and allocation plan
Which strategy will provide a resilient portfolio, when faced with a down-turn in the credit cycle and rising investor concerns about low yields in the current high inflation environment? To what strategy will continue to be more prevalent?
Mid-day wrap-up
Liquidity Rush
Will the liquidity crunch drive new entrants into secondaries in 2024? Will the amount of dry powder available limit activity and leave investors to cherry-pick transactions? Will we see more motivated sellers of private equity LP interests? Are LPs looking to de-risk and lock in unrealised paper gains and who realise they won’t get last year’s prices in the current market environment?
How has the secondaries market across Europe evolved over the last 12 months? Where are LPs and GPs finding the most attractive opportunities? How is the market being impacted by macroeconomic and geo-political developments? How much capital is there and where is it being invested?
Secondary Valuations
How have buyers and sellers repositioned their pricing expectations in the current climate? Are we seeing higher pricing due to a surge in dry powder? Are buyers waiting for pricing to come down? How will pricing change throughout 2024?
GP Led Secondaries
How are macroeconomic headwinds impacting the opportunity set across the GP-led space? How are buyers and sellers remaining flexible and continuing to close deals in a volatile market? What’s in store for the future of the GP-led market? The session will take a deep dive into innovative varieties of GP-led transactions and best practices -stapled fund raisings, continuation vehicles and fund restructurings.
Conclusion
The world’s growth engine
High interest rates, fewer exits, and extended fundraising periods; how have private markets performed in this environment? How are GPs adapting these market conditions and what is the outlook for 2025? How do you see the growing trend of consolidation within the industry and what impact will that have on LPs’ allocations?
Navigating risks and opportunity in Mainland China
Private-equity funds focused on China once boasted big returns. Now they have big problems. Are investors reassessing their investment strategy, and the capability of Chinese GPs, whether they still fit the market, and whether they are still able to remain competitive in the market? Are corporate carve outs a one foot in strategy? Is private credit and direct lending a growing opportunity in China?
Is it Japan's moment?
International GPs and LPs increasingly view Japan as one of the hottest growth markets for private equity as it gets lifted by macro tailwinds. Are Japan’s private markets enjoying a renaissance as more quality deals emerge? On the buyout side, how are Japan’s corporates shaping up and will we see fewer inefficient subsidiaries? How are international LPs thinking about currency risk?
The promise of Southeast Asia
Looking inward, where are the best local opportunities? Valuations, exits, and profitability: what iare the biggest opportunities in India’s VC market and where should LPs focus ? Will India maintain its status as the second-largest destination for VC and growth funding in Asia-Pacific in 2025?
Conclusion
Evolutions of the Private Debt Landscape
Private credit has in a little more than a decade evolved from a niche asset class to a key component of a diversified investment portfolio. Opportunities span the risk-return spectrum across private credit asset classes, including corporate lending, commercial real estate, energy transition and consumer finance. And investor allocations are increasing. According to Preqin, a data provider, total assets have nearly doubled since 2020 to $1.6 trillion and are expected to swell to $2.3 trillion by 2027.Where should investors set their sights as the new year gets underway? Will 2024 may turn out to be the year in which asset-backed lending strategies—also known as “specialty finance”—start to take up more space in private asset allocation?
Direct Lending in Europe
Direct lending: how big is the opportunity? How has market dislocation hampered the direct lending environment? How can direct lending be used to unlock opportunities in the middle-market? Are lenders finding enough opportunities to deploy their available capital? Will the demand for direct lending funds experience significant growth in 2025?
Real Assets and Infrastructure Lending
Real assets and infrastructure offer resilient risk characteristics and defensive attributes, are these the perfect fit in investor's portfolio seeking low risk, low volatility? Are specialized funds delivering best risk/return profile vs generalists?
The evolution of distresed debt
Distressed debt has increasingly become a hot topic and the uptick is only just beginning. Private credit managers are watching the segment with interest but exercising caution, are opportunistic credit strategies the space to watch in distressed debt? Will we see greater investor demand in 2025 for special situation funds? Are investors increasingly grouping distressed debt within a broader ‘opportunistic credit’ allocation? The panel discuss the outlook for distressed investing, through to 2025, to what degree will future rate cuts impact the distressed market.
Conclusion
The Climate x Returns Equation
How big an opportunity is climate investing? Is investing in climate solutions far from limited to a single asset class or a single sector of the economy? Do investors view climate risk management, thematic growth opportunities as economic levers? —how can you manage risk, work on margins, be more efficient?
How big is the decarbonisation opportunity?
Decarbonisation is a structural trend, what do investors need to keep in mind as they navigate the expanding and more competitive sustainable investment market? Are the biggest opportunities in assets transitioning from brown to grey?
Execution Challenges: delivering both returns and results
Climate investing is no longer about awareness or interest, it’s about execution, is there a growing alignment between results and returns? Are investors willing to allocate patient capital to reap the rewards? Should the risk/return profile of climate funds
Valuations: staying discipled in the next chapter
Climate change and business valuations are inextricably linked. When determining the value of a business, one must consider all the risks and opportunities, of which climate change is one. However, it can be difficult to assess climate change risks and opportunities if there is a lack of consistency in the information disclose. Investors are asking how they should modify their portfolios and are seeking to understand both the physical risks as well as the ways climate policy, technology, and changing consumer preferences will impact prices, costs, and demand across the entire economy?
A woman’s world!
Private equity and venture capital is all about people and ideas. We need to tap into and retain the best and widest pools of talent to ensure we continue to be successful – which includes people from all backgrounds. How can the industry better attract and retain female talent? Reaping the benefits of financial outperformance focusing on diversity performance and showing the financial and cultural benefits of addressing diversity at all levels
Roundtable discussions: Starting today and amplifying women's voices!
When women-led companies are undervalued, everyone loses - investors leave great opportunities on the table, innovative entrepreneurs don’t get the capital they need to scale, and society at large misses out on the impact of their innovations.
What is the industry doing to implement targeted interventions aimed at increasing gender equality and supporting gender-lens investing across sectors and markets?
Accessing Capital in Middle East | by DIFC
Hydrogen | by HY24
How can I legally market my fund in the EU | by Dorhyan.eu
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