Lazo Cetnik

Value Creation will always be a focus for Private Equity funds but is the current market highlighting its importance as much as it ever has? From my discussions with a number of funds, the answer seems to be yes. It is a period where there is an acceptance that the majority of gains in valuation will come from the improvements you can make operationally. The emphasis then switches to having the right people both in the Operating/Value Creation teams within funds and in C-Suite roles across the portfolio. I spoke with Brian Walker recently to discuss the Chief Technology Officer lens of this focus - and the need for commerciality and pragmatism. #CTO #Privateequity #operatingpartner #chieftechnologyofficer #digital #technology #valuecreation

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Why is Private Equity falling out of love with Consumer Goods company? From London to NYc, from high Fashion to mass market - the consumer sector turn down has been scaring off PE funds this year Growth concerns were part of the reasons that selloffs stripped close to $4.8 trillion off global equities in just three days over the summer Burberry has let go of its CEO and gave profits warning, its shares erased almost one fifth of their value on earnings day... Price elasticity has reached its limits, consumers are looking for alternative ways to spend their money 💰 and the luxury car market or aviation also suffer from the same declining demand. Time for a change if we want PE firms to remember their first love ❤️ #investment #luxury #consumers #bethechange

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🚨🚨 €15.2bn  - ICG - European Direct Lending - wow. 🚨 🚨   ⭐  ($16.8bn) ⭐ The fund is their 5th vintage of "ICG Senior Debt Partners" ⭐ Deploying since Dec 2022 and 40% deployed ⭐ The strategy invests in 1st lien, 2nd lien and unitranche transactions ✍️ Other significant fundraises: ✔️ Ares €15bn European Direct Lending (targetted in commitments) ✔️ Ares $15bn equity ($34bn deployable - US fund) ✔️ HPS $14bn equity ($21bn deployable - Senior Loans) ✔️ Goldman $13bn equity ($20bn deployable - West Street Partners) ✔️Arcmont $13bn European Direct Lending 💬 How do you see the market for Private Credit?  #privatedebt #privatecredit #specialsituations #secondaries #leveragedloans #directlending #leveragedfinance #structuredcredit #creditopportunities #privateequity

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#Hargreaves_Lansdown Hargreaves Lansdown backed the £5.4 billion bid for the FTSE 100 fund manager today from a private equity consortium, a deal that will end its time as a listed company. The Bristol-based finance firm has been listed in London since 2007. It said today that the final offer valued its shares at 1140p in cash and would include a 30p per share dividend for the financial year which ended on 30 June. Compared to the Hargreaves Lansdown share price before the approach was first made in April, the price is at a premium of over 54%. The consortium is made up of CVC, Nordic Capital and ADIA. Hargreaves Lansdown is named after its founders – Peter Hargreaves and Stephen Lansdown – who set it up as an investment tip sheet. It now runs a state-of-the-art trading platform from which clients can run their own portfolios and pensions. https://lnkd.in/dKpizupy

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Will Booming Private Credit + Resurgent Private Equity = a great H2 2024? Here's another sign that the answer is YES 👇 I'm increasingly persuaded based on my conversations with CEO, Chair, Private Markets Partners..... and articles like this. #PrivateEquity #DealActivity #TimeForOptimism

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An insightful read for those interested in how M&A can accelerate growth for portfolio businesses. Inflexion have clearly embraced this value-creation lever, completing over 500 portfolio acquisitions with a total value of almost £5bn. 🚀 It's increasingly common for funds and management teams to appoint M&A expertise within their businesses, often as part of a buy-and-build strategy, but also where selective M&A acts as a tool to address market-entry strategies (both geographic and product/ service diversification) and vertical integration. The report also covered the use of AI at the origination stages and the importance of a robust post-deal integration plan. This latter point resonates with what we have seen in the market over the past 18 months, with the demand for both interim and permanent integration professionals increasing exponentially as portfolio businesses seek to optimise value from their acquisitions. Please reach out if you would like to discuss the market for permanent or interim M&A & Integration talent, whether you are a fund/ portfolio business looking to hire, or a professional looking for your next opportunity. #MandA #CorporateDevelopment #PrivateEquity #PEPortfolio #Integration #ValueCreation https://lnkd.in/evhepzmt

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Will Private Equity and PE-backed IPOs show a strong 2024? Q2 sure looked positive, with some strong dealmaking especially in Europe! - Exit markets have also picked up in the second quarter, with an increase in value & early resurgence of PE-backed IPOs 💹 - secondaries market has had a record first half providing crucial liquidity and demonstrating the industry's adaptability - AI definitely helped revive the PE Pulse and we look forward to a strong year #Privateequity #growth #opportunities #bethechange

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⚽ Football could be coming home, but what about Private Equity dealmaking? Bain & Company's excellent PE Mid-Year report suggests the answer is a 'tentative yes', with dealmaking having stabilised in the first half of 2024. The report provides a balanced view and doesn't shy away from some of the challenges still impacting the industry, but those elusive 'green shoots' of recovery are starting to show. I remain optimistic for the second half of 2024 and look forward to seeing how the market evolves. 🚀 #PrivateEquity #CorporateDevelopment #Strategy #ValueCreation

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Top 20 wealth managers / private banks by AUM A stat that interested me: “There was a significant difference in the AUM of the top 20 managers. While the top seven have AUM of over £50 billion, to make the top 20, a manager needed just £17.5 billion in AUM, arguably demonstrating the fragmented nature of the UK wealth management industry.” Thanks Amit John #wealthmanagement #AUM #thewealthnet #stephensonexecutivesearch

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Positive Signs for PE - but what is driving the turnaround? The UK’s PE comeback in 4 charts - by Andrea Gaini 'The UK private equity market staged a modest recovery in H1 2024, with deal value hitting close to £50 billion and strong fundraising performance following a steep decline last year. Total deal value for the first six months of the year reached £49.7 billion (around $65.1 billion)—just over half of last year’s total—following the strongest Q2 in two years. So far, the six largest deals of 2024 were all closed in the second quarter.' What are the key factors responsible for driving the turnaround in the market? #privateequity #pe #software #saas https://lnkd.in/eSeGw9ny

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🚨 Carlyle scaling credit 🚨  ✔️ Carlyle have a very strong credit opps business but..... ✔️ (they used to have Strategic Partners - special sits, this was merged with credit opps to create a more scaleable business) ✔️ This credit opps business within Carlyle had a new mindset and new mangement as well, to support the new direction and growth ✔️ This makes a lot of sense because scaling credit opps is different to doing bespoke special situations ✔️ As the business scales further, the same approach is needed, adding more seniors from other scaled platforms ✔️ Professionals are needed in the team that come from a "flow direct lending background" ✔️In the same way there was a shift from Special Sits to Credit Opps, the same shift is required to tap into an even more scaleable credit such as direct lending etc ✔️ We have seen Blackstone and KKR do exactly this over the last 5 years in Europe... (Just fyi I am not saying change the team, but add the flow mindset and culture to the team, the IC and the fundraising teams) ⭐ The right human capital = abillity to scale 💬 Do you agree?

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Setting Realistic Goals: Aligning PE Expectations with Operational Realities Private equity partners thrive on ambitious goals, but real value comes from aligning investor expectations with the operational realities of portfolio companies. Here’s how to bridge the gap: 1. Involve Operational Leaders Early – Get insights from those on the ground to set achievable targets. 2. Prioritise Incremental Wins – Small, consistent gains build momentum and morale. 3. Create Adaptable Milestones – Flexibility lets teams recalibrate as they face real-world challenges. Sustainable growth isn’t about pushing harder; it’s about setting realistic goals that drive lasting impact. #PrivateEquity #OperationalExcellence #Transformation #Leadership

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Leveraging Interim Executives in private equity portfolio companies. In the dynamic world of private equity, the ability to adapt and drive value creation is paramount. Interim Executives, with their specialised expertise and industry connections, are increasingly becoming the go-to solution for private equity firms looking to navigate complex transitions and achieve strategic growth. These seasoned professionals play a pivotal role in reshaping the private equity landscape, driving value creation and strategic transformation. Please read our blog to understand the key benefits and see a case study of how one of our Interim Executives assisted a private equity firm - https://lnkd.in/gb_dVjnM Please reach out to our Interim Team for a discussion: Sydney: Caroline McAuliffe Alex Brown Pip Westhoff Melbourne: Jacinta Whelan Donna B. Francesca Conquest #interim #interimexecutive #privateequity #portfoliocompanies #casestudy #valuecreation #interimCFO #iterimCOO #interimCEO #interimchiefpeopleofficer #dealtransactions #investments #fractionalexecutives

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Here is our latest, bi-monthly report and analysis on private equity activity across Europe which has details on deal activity, which sectors are most active, and other key trends: Now that inflation is normalising (and interest rates), we are starting to see dry powder being deployed. This is certainly in line with the anecdotal evidence from meeting with clients this summer. The UK still accounts for more than half of the deals. It will be interesting to see if the proposed alignment of Income Tax and Capital Gains Tax, and the subsequent effect on carry, will change that going forward. The IPO market remains low in 2024, probably due to the increasing trend of European businesses listing on the New York exchange. At Leathwaite, we work with mid and large cap private equity firms to recruit transformational functional leadership within management companies, across portfolio leadership, and in value creation teams. Please click the link below for the full report and do get in touch if you would like to learn more. https://lnkd.in/d8gUGk5T #CFO #leadership #privateequity #functionalleadership #valuecreation

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THE RI TRANSLATOR..... HOW CENTRALISED TEAMS ARE BRIDGING INVESTMENTS AND CLIENTS As more people look for sustainable and responsible ways to invest, asset managers are changing how they work to meet this demand. One clear trend is the rise of centralised Responsible Investing teams, which link investment teams and clients. In many firms, these RI teams are central to everything related to ESG and responsible investing. Instead of spreading these roles across different departments, companies are forming dedicated RI groups that connect investments; client needs, and market trends. It works so well... Bringing Experts Together—Having all RI specialists on one team means firms can hire the best people with strong ESG practices and dat knowledge. This expertise can then be shared across the whole company, helping both investment and client teams. Speaking the Client's Language - RI teams act as translators, taking client feedback and requests and making sure the investment side understands and responds. This ensures that clients feel understood and that their investments match their values. Driving New Ideas—With a broad view of the client's needs and the market's direction, these teams can help develop new products that meet client needs and stay ahead of trends in responsible investing. Clear Communication—Centralised RI teams also help create a consistent message about sustainable investing. They work with marketing, PR, and client teams to ensure the firm speaks with one voice about its commitment to responsible investing. I think more firms will likely follow suit. Connecting what clients care about with their investments is becoming a key advantage in today's market. Having a team dedicated to making that connection can really set a firm apart. Neil Farrell Tatiana Dupont Matt Baty Stephanie Thompson Sashwot Kharel Farrell Associates | Certified B Corp™

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Market Challenges Impacting Top US Private Equity Funds: Q1 2024 Performance Analysis Top US private equity funds struggle as returns to investors decline, signaling ongoing market challenges. In Q1 2024, publicly-traded PE firms returned $7.7B, down from $11B a year ago. Carlyle Group's realizations dropped 54%, KKR's declined by $1.4B, and Blue Owl's PE fund distributions fell 88.7%. Blackstone managed a 2.1% decline, employing creative strategies like selling appreciated stock. Firms anticipate stronger activity in the coming year, contingent on market conditions. #privateequity #marketchallenges #investorreturns

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How Are Family Offices Changing? We've observed a significant shift in family offices, moving from traditional investment management models for ultra-high-net-worth families to sophisticated, institutional-like operations. Forbes highlights some key reasons for these changes: 🔹 Increased Wealth Concentration: The rise in ultra-high-net-worth families has necessitated more sophisticated wealth management approaches, prompting the establishment of more family offices. 🔹 Generational Shifts: Millennials and Generation Z are influencing family office strategies with a greater focus on social impact investing, technology, philanthropy, and sustainability. 🔹 Direct Investment Strategies: Our family office clients are moving from passive to active investing, favouring direct investments, co-investments, and venture capital for greater control and returns. 🔹 Technological Integration: Advanced technologies like data analytics and AI are enhancing investment decisions and operational efficiency in family offices. Family offices are now outpacing a number of traditional institutions in the race for top talent, with robust growth in both the Asia-Pacific and North American regions; both we have seen are particularly favouring the private markets space. https://lnkd.in/e_HTHuAM #FamilyOffice #WealthManagement #Investment #Technology #Sustainability #GenerationalShift #Stephensonexecutivesearch

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Private Equity interest in VC-backed start-ups has been a common trend so far in 2024, as companies focus more on profitability. This is good news for VC portfolios, who have struggled to find exit paths over the last 18 months. For private equity, it is chance to increase activity in a what is still a tough market for deal-making. For the hiring market to pick up, there still needs to be a lot more activity and funds that can generate strong returns are pivotal to the overall landscape. #venturecapital #privateequity #technology #privateinvestments #startups

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Private Markets Update 📈 Deutsche Numis polled 200 senior UK based PE professionals for an insight into market sentiment 💭 Admittedly, I've not been too bullish on the UK market, assuming value investments in the European markets, competitive domestic landscape & Trump opening up the USA would mean PE focus shifted away from the UK... but luckily it seems I was wrong! Per Deutsche's report, the UK remains a highly attractive geography for private equity 🌍 - 81% of respondents view the UK as highly attractive compared to other geographies - IPO sentiment for 2025 improves - 72% focused pipeline on the UK (36% private, 26% public) However, 38% of respondents still cited international targets as their main focus... Irrespective respondents are targeting ~10 acquisitions in 2025, with 20% "transformational" & 49% "sizeable bolt on" So hopefully significant transformation & integration work for 2025🤞 Reach out if you are resource planning for 2025 transformation & want to discuss contractor rates, resource availability & our engagement model 🤝 #transformation #privateequity #technology

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