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Private Markets Notice Decline As seen in Hunt Scanlon Media’s recently released 2023 Private Equity Recruiting Report, private markets fell 11.4% in 2022. Bain & Company also reported declines. “Given the heights from which they fell, buyout deal value ($654 billion), exits ($565 billion), and fund-raising ($347 billion) all finished 2022 with respectable totals in a historical context. But the sudden reversal marked the end of an up cycle that has endured (with a brief COVID brake tap) since 2010, when the industry emerged from the global financial crisis and produced a 12-year run of stunning performance.” To download the full report, please visit: https://lnkd.in/e4cn5_Cd #privateequity #fundraising #recruiting

In a year when many LPs lamented anemic flows, GroveStreet’s LMM buyout portfolio generated liquidity that surpassed historical averages, including periods with more favorable exit environments. Grovestreet's Bruce Ou and Eric Garofano analyze the trends in GroveStreet’s portfolio and explore the question of whether the benefits of a well curated LMM buyout portfolio hold up in a challenging environment and why.

Exciting trends in lower middle market PE. My colleagues summarize what we've be seeing in our portfolios and our thoughts on the opportunities in buyouts. #privateequity #buyout #liquidity

As we start 2024, we’re invariably asked about the prospects for private equity. We avoid prognosticating and instead focus on fundamentals and the data. The prior year presented some interesting trends, which remind us of the potential opportunities and advantages of investing in lower mid-market buyouts. As always, manager selection is of paramount importance. The paper below details these observations. What we experienced in 2023 in our lower mid-market buyout activities was pleasing, and we enter the new year optimistic about the possibilities in this segment of private equity.

Secondary buyout: This is the sale of the portfolio company to another private equity firm. Secondary buyouts have become more prevalent in recent years, as private equity firms have accumulated large amounts of capital and have sought to diversify their portfolios. Secondary buyouts can offer advantages such as a smooth and efficient exit process, a competitive bidding environment, and a potential value uplift from further operational improvements. However, secondary buyouts may also entail drawbacks such as lower returns due to higher entry multiples, limited value creation opportunities for the new owner, and reputational risks for the seller.

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We've done it again...15th best IN THE WORLD! 🍾 Oliver Gottschalg and his team at HEC Paris and Dow Jones have just released the results of the Small-Cap Buyout Performance Review for 2023. We've been ranked in the top 15 for the third consecutive year. To say we're thrilled is a massive understatement. Read more about the review and the findings by clicking the link below: https://lnkd.in/ewVxTwPn #privateequity

Amidst economic volatility, the mid-market has shown that it can provide robust performance and returns, and this sub-sector continues to attract attention. Coller Capital’s recent Global Private Equity Barometer reported that 82% of LP respondents said they expect mid-market buyouts to offer good investment opportunities in the next few years.   In the US, the mid-market offers an abundance of potential opportunities with its unique sourcing methods and strong revenue growth projection. For wealth managers looking to capitalise and invest in this market, identifying partners who can help develop long-term investment strategies and access the best-in-class funds is vital. Our recently launched US Mid-Market Programme does exactly this by helping European wealth managers find the right managers and allocate capital to leading mid-market private equity funds that have been historically difficult to access.   Read more about why the US Mid-Market is an attractive segment for investment here: https://lnkd.in/eTG-b4NB   #privateequity #privatemarkets #wealthmanagement  

A theme is emerging in the market dislocation -- several firms have raised or are raising $$ to back managers in the lower-end of the market, which is seeing slower capital flows as LPs stick with larger shops. Today we have one from HighVista Strategies, which acquried the US #privateequity operation of abrdn last year. HighVista is closing its Fund X on $675m, beating the $550m target, for investments in small and emerging buyouts. "There’s an unusually compelling opportunity right now in the small buyout segment due to how the cycle is playing out. When the liquidity tide goes out, as it has over the last 12 to 18 months, investors retreat from investing in emerging managers or small-cap GPs" says Scott Reed of HighVista. Read more here on Buyouts: https://lnkd.in/eCp7R67S

We have our updated chart of what we call the 'most interesting' emerging #privateequity managers, including first-time funds, in the market. We base this list off of recommendations from around the industry to make sure we're hitting firms and funds of high value to LPs. The updated list includes around 45 names of funds in market that have gotten the attention of investors, including Otro Capital, Iron Path Capital, 5th Century Partners, Dynasty Equity, Citation Capital, Broad Sky Partners, Allied Industrial Partners and Highland Rim Capital. Check it out on Buyouts and as always, hit me up with thoughts and tips on names we may be missing (in the PE buyout/growth world): https://lnkd.in/eZSCsdBU