Tag Archives: Paris 2023

PE-arl of the Orient

All roads are leading to Asia Pacific, as mid-market PE firms seek to expand their LP base.Fund-of-fund investors such as Asia Heritage are joining forces with GP stakes investors including Bonaccord Capital to help some of its mid-market managers develop new relationships with Asian LPs. Could this be a feast in the East, or just a flash in the pan? Asian investors including UHNW individuals are looking to tap in to alternative investments in the West. Given that the region is home to more than 67,000 of them, it could well present a kingdom of riches for US firms to tap in to over the coming years. US managers will doubtless be hoping that it becomes the PE-arl of the Orient, as they expand their fundraising efforts.

inspired by Pitchbook

Lean. Green. PE machine.

Private equity is the most useful investment vehicle to achieve meaningful impact.. According to research by Pensions for Purpose, sponsored by Columbia Threadneedle Investments, 43% of those surveyed were allocating to impact funds in the PE space but 60% of those who currently do not, believe it is the best way to achieve positive impact. As such, there would seem to be a lot of spare horsepower to fire the PE engine over the coming months and years. PE managers who are thinking about adding impact funds to the stable of vehicles should consider that investors do not wish to compromise on performance. A solid risk/return profile was the second most cited reason by survey respondents (25%), underscoring the fact that pension funds do not believe impact investing should necessarily mean hitting the brakes on performance.

inspired by Investment & Pensions Europe (IPE)

One for all and four for one

BMO Global Asset Management has tapped in to in its inner Musketeer and created a new “four for one” fund vehicle with Partners Group. . The single vehicle will give high net worth investors easy access to four asset classes spanning private equity, private credit, real estate and infrastructure. It is believed that around 20% of the fund will remain in cash in order to provide sufficient liquidity for redemptions. It is yet another sign of the growing democratization of private markets, as asset managers look to broaden their investor base. This new “access all areas” fund will be the first of three simplified private market funds at BMO. And the fact that there will be no capital calls and low minimum investments means that we might start to see more of these “four for one” specials hitting the marketplace, and lead to an even bigger influx of investor capital.

inspired by CNW Group

CalPERS-pective on VC

Despite a less than Oscar-winning performance in its venture capital portfolio over the last 12 months, the California Public Employees’ Retirement System (CalPERS), plans on giving the asset class an even bigger lead role.. At present, VC only accounts for 1% ($758 million) of its $55 billion private equity portfolio. But having experienced a “lost decade” of extended bull market returns, CalPERS plans on rewriting the script by becoming an even bigger limited partner to VC funds. If that doesn’t pique the interest of the VC community as they embark on their next rounds of fundraising then nothing will.

inspired by CNBC

Vintage performance

As another successful French Open tennis tournament comes to an end, private equity investors are hoping that fund vintages in 2023 and 2024 will serve up a grand slam performance.. That seems to be the sentiment among LPs for North America and Europe, according to Coller Capital’s latest Global Private Equity Barometer. Special situation funds and mid-market funds were cited as offering the best shot for GPs to seek out good deal opportunities, as they look to take a break from large and mega buyout funds. The last 12 months or more have seen the markets, broadly, come under pressure but these latest findings do at least suggest that the latest private equity funds coming to market could find an advantage. Choosing the right strategies will be key for LPs as they look once again for private equity to deliver Game. Set. Match.

inspired by Coller Capital