Monitor
Private Capital Monitor 12/05
12th May 2023
Worth a read
Bloomberg’s Opinion’s Allison Schrager highlights how public pension funds’ pursuit of higher returns has resulted in investment in subpar funds and riskier assets, leading to market distortions, job losses, and reduced productivity. Schrager suggests that improving pension accounting standards could help address these challenges.
The Wall Street Journal Pro writes that institutional investors are showing less interest in large private-equity funds, causing major firms to struggle in meeting fundraising targets. Investors are reallocating capital to other strategies, such as private-credit vehicles and secondary funds, due to overallocation in private-equity markets.
Bloomberg reports that family offices, managing money for the ultra-rich, are gearing up to invest substantial cash in public and private markets. 41% of private investment firms are planning to increase allocations to private equity and private credit, along with a “home bias” in investment choices.
Media of the week
Spotlight: A PEI Podcast.
Apollo’s Boris Olujic: ‘Investors need to recalibrate’ to have an impact
Wall of money
Triton raises €1.6bn for multi-asset continuation fund
The transaction has provided Triton IV investors with a 3.7x return or the option to roll into the new vehicle.
LightBay raises over $1bn for second private equity fund
The Los Angeles-based private equity firm focused on service-based, middle-market companies, closed an oversubscribed fund which exceeded its target of $800 million.
BlackRock targeting $1bn for new Middle East infra PE fund
According to a report by Bloomberg, BlackRock is targeting a fundraise from some of the Middle East’s largest sovereign wealth funds for a new private equity fund focused on infrastructure investments in the region.
Palantine launches growth credit strategy
Palantine’s third fund will back high-growth tech companies throughout the UK and will support maturing cyber, fintech, SaaS, healthtech, medtech, AI, and advanced manufacturing businesses.
Deal Chart
| Acquisition Target | Buyer | Seller | Value | Date | Region | Sector |
| Industrial Physics | KKR | Union Park | undisclosed | 11/05 | North America | Industrial Technology |
| Filtration | Px3 Partners | – | undisclosed | 10/05 | Ireland | Clean-tech |
| Previero | Ambienta | – | undisclosed | 10/05 | Italy | Design and Manufacturing |
| Suave | Yellow Wood Partners LLC | Unilever | undisclosed | 05/05 | North America | Beauty and Personal care |
Movers and Shakers
- 17 Capital has appointed Alejandro Hernandez as Head of Investor Relations, Canada and Latin America. He will be based in Edmonton, Canada but will work closely with 17Capital’s growing IR team in New York.
- Troy Broderick has been promoted to be the new chief operating officer of Goldman Sachs Group’s global mergers and acquisitions business.
- Sullivan Street Partners has appointed Zeina Bain as managing partner. Bain spent 18 years with the Carlyle group, becoming managing director of its European buyout team.
From the Horse’s mouth
“There are some structural challenges in the near term, because [institutional investors] may be overallocated right now” – Jon Gray, President and Chief Operating Officer of Blackstone.
“Family offices, for the most part, are really ‘risk on’ for the next 12 months”- Meena Flynn, co-head of global private wealth management.
“I attribute my success to this – I never gave or took any excuse.” – Florence Nightingale, British nurse who revolutionized nursing during the Crimean War, born on this day 1820.
