So far in our “Private Equity Now” series we’ve covered the various technologies available to LPs and GPs to access liquidity in this difficult environment. This week we focus on fundraising to understand how GPs are navigating with investors pining for distributions.
Indeed, private equity fund managers are facing a landscape unlike any we’ve experienced in recent years. According to Pitchbook, the median time to close a fund is now nearly 17 months, as of September 30. That is up from 14 months in 2023 and 11 months in 2022. Those timelines extend even further for less experienced or first-time managers.
The slow return of capital has created an imbalance between the amount raised and the supply available from investors. This imbalance is an opening to stand out in a competitive market...
“The priority in today’s market is to demonstrate to LPs that your firm is a responsible steward of capital with a disciplined unemotional plan for generating returns and distributing capital on time.” – Bain, Private Equity MidYear Report, 2024.
Featuring Charts
Chart of the Week: No Money-Back Guarantee
The absence of realizations has hampered distributions to LPs. Source: Burgiss/MSCI(Past performance is no guarantee of future results.)
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Chart of the Week: Secondaries on the March
The growth of equity secondaries is fueled by both LP and GP liquidity needs. Source: Jefferies(Past performance is no guarantee of future results.)
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Chart of the Week: On Holds
In the absence of M&A activity, PE portfolio companies are held for extended periods. Source: PitchBook(Past performance is no guarantee of future results.)
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Chart of the Week: Who’s The Driest?
Despite claims of a “too crowded” private debt market, PE dry powder is four times greater. Source: Preqin(Past performance is no guarantee of future results.)
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Chart of the Week: A World Away
Fund managers are looking increasingly to global issues for biggest risks. Source: The Daily Shot, BofA Global Research(Past performance is no guarantee of future results.)
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Chart of the Week: All of the Above
Investors expect modestly lower credit spreads, no change, and some widening. Source: The Daily Shot, PitchBook/LCD(Past performance is no guarantee of future results.)
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Private Debt Intelligence – 11/18/2024
Private equity deal value rises above five-year average Read more in Preqin’s ‘Deal Flow Monitor: Q3 2024’ Private equity deal value in North America increased to $98.7bn in Q3 2023, exceeding the five-year average of $84bn, and accounting for 40.8% of all private capital deals in the region…. Subscribe to Read MoreAlready a member? Log
The Pulse of Private Equity – 11/18/2024
Healthcare services PE deal count by quarter Download PitchBook’s Report here. Within healthcare services, some of the areas that continue to see the highest levels of sponsor demand and interest, including medspa and outpatient mental health, also have a scarcity of platform-scale assets…. Subscribe to Read MoreAlready a member? Log in here...
Middle Market & Private Credit – 11/18/2024
Fitch’s Privately Monitored Middle Market Portfolio Overview − 3Q24 (Part 3) Click here to download report. In the charts above, Fitch presents aggregate data for Middle Market companies that it privately rates on a monitored basis for asset managers, defined as:… Subscribe to Read MoreAlready a member? Log in here...
Leveraged Loan Insight & Analysis – 11/18/2024
A flurry of new leveraged loans hit the market post elections and in run up to year end After a brief pullback in the institutional calendar in the week leading up to the US election, lenders have tapped the market with a flurry of deals…. Subscribe to Read MoreAlready a member? Log in here...
Middle Market & Private Credit – 11/11/2024
Fitch’s Privately Monitored Middle Market Portfolio Overview − 3Q24 (Part 2) Click here to download report. In the charts above, Fitch presents aggregate data for Middle Market companies that it privately rates on a monitored basis for asset managers, defined as:… Subscribe to Read MoreAlready a member? Log in here...
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Beginning in July 2022 The Lead Left published a series of articles on credit market. This report consolidates those articles.
Cov-lite trends Inflation & rising interest rates – LIBOR to SOFR transition Mega-tranche uni trend ESG takes center stage Login to view interactive report and download PDF version. … Subscribe to Read MoreAlready a member? Log in here Related posts: 2H 2021 Midyear Outlook Report State of the Capital Markets – Fourth Quarter 2016 Review and
Beginning in September 2021 The Lead Left published a series of articles on supply chain. This report consolidates those articles.
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