Emre Karabekirogullari

To achieve outsized returns in a maturing and increasingly crowded private markets space, investors should start leveraging all dimensions of diversification when building their portfolios! That comes with building the right teams to unlock differentiated sources of dealflow 🔔

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"Diverse PE & VC firms invest in a different universe of deals" My own experience in investment management shows that the different views on deals is one fo the key success factors! 🏆 Working together in gender diverse teams or with people of different backgrounds is so inspiring and value generating and, in addition, provides better performance! It is so important for investors and the teams themselves to have more equal opportunities on all levels of an investment firm from junior to senior positions. 🚀 More information in our emma Ventures' post below:

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#Ultra_rich_individuals_and_families Ultra-rich individuals and families worth more than $150bn are helping drive a resurgence in private equity buyouts, providing capital for some of the year’s biggest acquisitions to overcome a tough dealmaking environment. Wealthy clans that built their fortunes in industries from children’s toys to household boilers have been co-investors on nearly $20 billion of listed company takeovers this year, according to data compiled by Bloomberg. They’ve made a mark on Wall Street as go-to sources of capital for investment firms like KKR & Co. and Silver Lake, helping them get acquisitions over the line at a time when borrowed money remains expensive. https://lnkd.in/d48TEht6

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#wealthy_families_fuel Ultra-rich individuals and families worth more than $150bn are helping drive a resurgence in private equity buyouts, providing capital for some of the year’s biggest acquisitions to overcome a tough dealmaking environment. Wealthy clans that built their fortunes in industries from children’s toys to household boilers have been co-investors on nearly $20 billion of listed company takeovers this year, according to data compiled by Bloomberg. They’ve made a mark on Wall Street as go-to sources of capital for investment firms like KKR & Co. and Silver Lake, helping them get acquisitions over the line at a time when borrowed money remains expensive. https://lnkd.in/d48TEht6

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#Private_equity #boom Private equity has had quite a boom over the last couple of decades. Here are some stats: The number of private equity firms has grown from just 24 in 1980 to 17,000 in the U.S. alone today. In 2000, the global private equity market was $579 billion. Today it’s over $8 trillion. We’ve reported on how private equity firms have bought up companies in everything from nursing homes to restaurants and real estate. But is there trouble ahead for private equity? Jared Dillian, a financial author and trader, has been looking into private equity, and he does not like what he sees. His new report is called “The Next Big Short: Hidden Risks Behind Private Equity’s $8 Trillion Market.” Dillian discussed his views on the industry with “Marketplace Morning Report” host David Brancaccio. The following is an edited transcript of their conversation. https://lnkd.in/dGG3D3-U

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#Family_offices Family offices in North America allocate 35% of the average portfolio to private equity, the highest regionally, according to the UBS Global Family Office Report 2024.  In its latest report, UBS surveyed 320 single-family offices globally with an average net worth of $2.6bn and covering over $600bn of wealth.  By region, family offices in North America allocate 35% of the average portfolio to private equity and 8% for hedge funds; in Latin America, 18% and 2%; in Switzerland, 18% and 3%; in the rest of Europe, 22% and 4%; in the Middle East, 27% and 5%; in North Asia, 18% and 6%; and in Southeast Asia, 19% and 5%. https://lnkd.in/gYA_BMuG

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#Direct_deals #fund_investments The world of family offices is challenging to penetrate and understand. Family offices operate discreetly to safeguard the family’s interests and privacy. Despite this discretion, there is a growing need for information flow and collaboration among family offices, leading to the emergence of various family office clubs (such as SFO Alliance, Campden Wealth Institute, Horizon.org, etc.), and multi-family setups. https://lnkd.in/gYc2-Pty

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📈 Many studies show how Value Creation over Leverage and Multiple Expansion is the main driver of excess returns in Private Equity. So how do Private Equity Firms Create Value in Uncertain Times ? 1. Cash management - Working capital best practices + better forecasting tools + cash repatriation stratagems from entities located abroad 2. Cost control - Investments in data insights + operating partners with finance function skill sets 3. Talent management - hiring the best + skill improvement + cross-company teams 4. AI initiatives - Leverage existing technology vs. large digital transformation projects + multiple re-rating on exit 5. Integrate ESG - KPI tracking + more exit opportunities With longer hold periods, PE optimize performance, build optionality and prepare exit strategies. #PrivateEquity #ValueCreation Ugo Cloutier, CPA Auditor, CITP Guillaume Mounier Bernard Cormier, CFA Gaby Abou Merhi, CFA Source: Harvard Business Review https://lnkd.in/eDEy3eGn

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Private Credit Still Deserves Credit: The Big Point The Rabid Capitalist: The Big Point is a summary of a detailed note available to paid subscribers. The Rabid Capitalist’s business development company (“BDC”) portfolio has delivered excellent returns since inception and should continue to do so for the next three to five years at a minimum. The private credit asset class has been neglected by institutional investors historically. While it has become more popular recently because of its attractive risk and return characteristics, the asset class is not in danger of rising capital flows drowning future investment returns. Private credit has performed well relative to private equity. It has generated favorable distributions to paid-in capital (“DPI”) compared to private equity. In other words, their cash-on-cash realized returns have been excellent. Complete content is available for a $15 monthly subscription. Click here to subscribe: https://lnkd.in/eYX9mVxF

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We are delighted to announce the merger of the transaction team at GrowthWorks, a boutique advisory firm specializing in the technology, media, and telecommunications (TMT) sectors, with Aalto Capital. This merger will see the GrowthWorks transaction team join Aalto's London office as the cornerstone of our new TMT practice, further solidifying our commitment to providing specialised advisory expertise in dynamic and fast-evolving industries. This is an exciting step forward for Aalto Capital and our clients. The GrowthWorks team brings a wealth of experience and an impeccable global track record in advising high-growth companies in the TMT space. Our new Partners are Richard Montgomery (former head of Verizon's international global business), Krzysztof Werkun (senior bulge-bracket banker, co-founder of China Renaissance as well as other TMT ventures), and Emilio Manso-Salinas (senior executive in M&A and other roles for large TMT corporations including NTT, Equant, and Lucent Technologies, co-founder of boutiques Turms APAC and GrowthWorks). With this merger, the newly established TMT team in London will play a pivotal role in Aalto Capital’s broader global platform, focusing on mergers and acquisitions, capital raising, strategic partnerships, and tailored advisory services. “We are delighted to join the Aalto Capital family,” said, Emilio Manso-Salinas Managing Director at GrowthWorks. “The combination of GrowthWorks’ sector-specific expertise and Aalto Capital’s global reach provides an incredible opportunity to serve our clients with a comprehensive suite of services. “The addition of this team to Aalto's London office will reinforce our ability to deliver innovative and client-focused solutions in one of the most dynamic financial hubs in the world. Together, we are well-positioned to address the challenges and seize the opportunities that lie ahead for the TMT industry.” #TMT #mergersandacquisitions #fundraising

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Excited to Host Panel #4 at Our PEC Conference: “Is Value Creation the Holy Grail?” As we aim to be the most transparent event in the Private Equity space this should be an interesting one 😉 I’m thrilled to be joined by distinguished panelists Nathalie K. (Pictet Group), Christian Ramme (Tenzing), Philipp M. Becker (THF), and Nick Miles (Lazard). Together, we'll delve into the intricacies and GP/LP perspectives on establishing value creation entities within Private Equity. Expect a lively discussion on the essence of value creation in Private Equity, challenging its celebrated position as the industry's ultimate goal. With insights from both General Partners and Limited Partners, our panel will explore various value creation models, their strategies, effectiveness, and impact, from different viewpoints. This session promises to challenge traditional beliefs, illuminate the complex and diverse methods of value creation, and enhance our understanding of its significance in driving successful investments. 📧 Interested in joining the conversation? Secure one of the last remaining invitations to PEC on April 25th, 2024, by emailing [email protected] for your personal invitation. Let’s challenge the status quo together! cc Project A Ventures, Christoph Rösler, Christoph Jost, Michelle Charlotte Gerstberger, Ben Fischer #PEX2024 #PrivateEquity #InvestmentStrategy #SoftwareSector 

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Interest rate cuts is happening... investors' appetite for International Real Estate (UK and USA) is gradually back and will be stronger than the previous cycle in my opinion... some interesting trends to invest in... Advice to investors: 1- Focus on fundementals (location, covenant, and structure). 2- Talk to lawyers and tax advisers and get updated with recent regulatory changes, specially if you have been absent for a while. 3- Talk to Capital Advisers and understand latest trends. 4- Compile a fresh list of competent Fund/ Investment Managers. Get their track record for the last 4 years specifically, this will show how did they manage their portfolios during one of the most difficult times in recent history. 5- Learn from past mistakes/ choices !

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What Is a Buyout Fund? Lever & co Private Equity Explained A buyout fund is a private equity fund that acquires controlling stakes in established companies, aiming to improve their operations and increase valuation for a profitable exit. These funds use a mix of equity and debt financing, focusing on mature businesses to generate returns for investors.

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Strategic Investors Take the Lead Aalto Capital had the pleasure of attending the 2024 Mergermarket Forum in London last month, where many fascinating topics and views were discussed and debated. At this year’s event, it was mentioned that strategic investors accounted for 76% of deal flow in the first four months of 2024 – a strikingly high proportion. What might be causing this uptick in the proportion of strategic transactions? Perhaps there is more hesitance from private equity. After the boom of 2021, many PE firms have reevaluated their investment strategies and become much more selective and thorough when choosing investments. Many private equity players are sitting back and waiting to see how companies fair the rockier economic conditions – who hits their targets against macroeconomic headwinds, and hence who comes out on top. On the other hand, many companies may be looking to M&A to fuel their growth as the economy has slowed. Fragmented technology and services markets in particular are seeing a push towards consolidation as a means of providing companies with a more certain route to revenue growth and increased market share. This new trend should be considered as companies plan their fundraising strategies. Good companies will find that private equity, though more decerning, is still looking for investments with a defensible market position and strategy. This makes it even more important for companies to set realistic forecasts and focus on strengthening their cash flows. Looking to strategic investors / acquirers may be a more certain route to capital, but it is worth noting that transactions across the board are taking longer than they have historically. According to a survey performed by Mergermarket and SRS Acquiom in Q1 2024, 64% of respondents are finding due diligence is taking longer than it did pre-pandemic. 44% of respondents say it takes them 5-6 months to complete a deal from the initial outreach to closing. A further 22% found it was taking longer than 6 months. Companies planning a fundraising or sale should note it is better to start early and leave plenty of time to find the right investor and not just the fastest. #investmentbanking #corporatefinance #mergers&acquisitions #equityfundraising #equitycapital

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Qatar Investment Authority plans to make an anchor investment in Ardian Semiconductor, a fund set up by French private equity firm Ardian to invest in the semiconductor industry across Europe. The Qatar sovereign-wealth fund said the move reflects its “belief in the pervasiveness of semiconductors in the world economy, and their impact on digital and green transformations across key sectors such as artificial intelligence, mobility or consumer technology.” It didn’t disclose terms of the commitment. QIA has been increasing its tech investments, participating in and leading funding rounds by companies as the country seeks to diversify its economy. The fund already invested in Kokusai Electric a semiconductor manufacturing company, and took a minority stake in that firm last year. Ardian, which oversees or advises on $164 billion of assets, launched its semiconductor platform with a goal to be the “partner of choice in the European semiconductor value chain,” offering capital solutions and operational expertise. #sovereignwealthfunds #privatequity #semiconductor #GCC #Qatar #Europe #investment #Qatar Investment Authority #tech

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Excited to share the new Gain.pro report on French PE market 🇫🇷🌟 What are the key takeaways? ✔️ PE-backed entries are on track to hit a new high this year, driven by a surge in activity in the Services, Industrials and TMT sectors. ✔️ PE exits are up, driven by a particularly strong Sponsor-to-Sponsor exit market, but multiples have dropped to 9.3x, and holding periods are now at 6.1 years. ✔️Ardian leads as the largest sponsor investing in France, managing a total estimated EV of €12.6bn in the region, followed by Bpifrance (€11.1bn) and Clayton, Dubilier & Rice (€10.6bn). Download the full report here ➡️ https://okt.to/I2rQzE

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