Tuesday, September 18, 2018

The main driver of private equity portfolio performance is adherence to strategic asset allocation

LPs spend hours designing long-term strategies to beat the market by choosing from a number of vintage years, sectors, geographies and funds, and they sometimes change that strategy as market conditions evolve. All these investment decisions matter for returns, but how much do they matter? A new study by Capital Dynamics hopes to shed some light on the question.

European fundraising looks set to surpass 2015

European fundraising looks set to go from strength to strength in the coming year. Data compiled by Preqin indicates that 2016’s sum will exceed the $71bn (€62.9bn) raised last year. In Q1, 37 buyout funds with a European focus reached a final close, raising a total of $28bn.

UK tops European ranks for inbound deals

The UK ranked as the top European economic target for inbound deals from the emerging markets during H2 2015, KPMG data reveals.

M&A buyers have less time and information to conduct due diligence

As global M&A activity goes from strength to strength, both corporate and private equity buyers face increasing risks to ensure successful transactions, a new report from risk consultancy Mercer shows.

From Inflexion to Tenzing

One of March’s more surprising appointments was the move of Inflexion Private Equity partner Christian Hamilton to newcomer Tenzing Private Equity, where he will be co-managing partner alongside founder Guy Gillon.

Shedding light on the fundraising year so far

This year promises to be a cutthroat one for private equity, according to new data released by online marketplace Palico. The number of funds seeking capital is up six per cent from last year, meaning firms will be vying for investors’ attention.

Record prices are being paid for Eurozone mid-market companies

Eurozone mid-market company prices have peaked to an all-time high, equalling levels seen only in 2006, according to Epsilon Research. The Argos Mid-Market Index increased seven per cent in Q4 2015 to 9.1x Ebitda, reaching the record high of H2 2006.

Devil’s advocate: high valuations

Investor anxiety around climbing valuations and the ability of private equity managers to make profits when prices are full has been intensifying.

Bringing a private equity approach to crowdfunding

Acceleris Capital, a corporate finance house, has announced a merger with InvestingZone, an equity crowdfunding platform, and Growthdeck, a Scottish crowd platform, has combined with Squareknot, a provider of loans and equity deals.

A turn for the worse?

Private equity firms who rely on capital markets for debt financing have cause for concern. The credit quality of European leveraged loan borrowers remains weak, according to a report by Fitch Ratings, with 50 per cent of credit opinions at “B-*” or below.
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