Fund Finance Friday readers, as the holiday season approaches, we want to take a moment to express our gratitude for your continuous support throughout the year. In celebration of the festivities and to recharge for an exciting new year, we'll be taking a short break and will be back in January. Wishing you all a joyful and safe holiday season filled with warmth and cheer. We eagerly anticipate reconnecting in the new year.
This year has seen a significant amount of consolidation of sponsors in the private equity market, and this is a trend that is predicted to continue throughout 2024 and beyond.
While nearly all fund finance transactions have change-of-control triggers, such mergers and takeovers between sponsors can present a number of issues in established financings which, at their extreme, may ultimately result in such financing transactions coming to an end.
In this article, we seek to explore some considerations around the impact that private equity manager consolidation may have on fund financings (although it is worth keeping in mind that public listings of an asset manager may also trigger a change of control.)
Higher interest rates have rearranged the investment landscape with liquid products offering more attractive value while forward private market returns are somewhat uncertain in light of challenges facing valuations and the path to realization. Given this setup, Private Equity International latest edition investor survey, provides timely insight into LP priorities.
Here’s a slice of what we’re reading (and listening to) this week!
Driving change at the leadership level requires a strategic approach to hiring and career development, says Women in Fund Finance global co-head Dee Dee Sklar. Read more in Private Equity International here.
The early read on fundraising through Q3 from Pitchbook is likely to be a pleasant surprise relative to expectations. For YTD through Q3, 3,400 private funds closed globally, putting the private capital raised 14% below the year-earlier total. Focusing on PE, capital raised in Q3 was the highest to date in 2023, with $5-billion plus funds representing 47% of the total raised. Secondaries fundraising in just the first three quarters surpassed yearly totals going back to 2020.
The full report is available here.
The EMEA FFA NextGen Committee invites you to join them for 2023 Christmas Drinks, hosted by Simmons & Simmons.
It’s not unusual for new products to come under scrutiny in their ‘growing up’ phase, but some concerns around NAV loans may be misplaced.
(This article originally appeared in Private Equity International. You can view the article here.)
On Thursday 30 November, Cadwalader’s Women’s Leadership Initiative (“WLI”) hosted the first Girls in Finance day in London.
The WLI welcomed 20 students from the Eden Girls’ School in collaboration with the East London Business Alliance to Cadwalader’s London offices, for an immersive morning learning about careers in finance and an array of finance concepts.
The FFA APAC team invites you to join them for an evening of networking! Please join for drinks, canapes, and an opportunity to socialize and celebrate the year with colleagues and associates in the fund finance industry.
The event will be hosted simultaneously in Hong Kong, Singapore, and Sydney on December 7, 2023.