Exits have been hard for #privateequity — and according to this article from PitchBook (https://lnkd.in/gWT7waX4), they will remain hard as we enter 2025. That's why sophisticated foreign investors, like Mubadala Capital, are starting to target these long-hold PE-backed assets here in the US. In addition to persistent macroeconomic headwinds that have slowed exit activity over the past 24 months, PE firms now face the added challenge of running out of time to exit long-held assets. With continuation funds falling out of favor with many LPs, viable exit options are becoming increasingly scarce. **FYI: I strive to be a pretty jovial person so I promise, I'm not writing this post to be a Debbie Downer to my PE friends. Here's why I'm posting this: Over the past few months, our team at PARKRESILIENCE has been working directly with sponsors to offer a rather obvious solution: quick, quiet transactions at fair market value for long-hold assets. Simple, right? Our approach has been very well-received, largely due to these three reasons: 1. Speed: We aim to close deals within 60-90 days from our first conversation, giving sponsors a fast and efficient path to liquidity. 2. No Outside Investors: We invest private family capital, which means we don't need outside approvals or to adhere to a rigid investment mandate. This gives us the flexibility to invest in more unique situations and structure deals that work best for everyone. 3. Fair Market Value: We offer fair market terms that reflect the true value of the business—i.e. we’re not here to steal deals. So, to all of my PE friends in the network, if you are facing limited exit opportunities with a mature portfolio company, we should absolutely discuss how PARKRESILIENCE can offer a timely and reliable exit strategy for the business. #PrivateEquity #ExitStrategies #ParkResilience #ForeignInvestment #OffMarketDeals #PEExits
Kevin Snider, MSF’s Post
More Relevant Posts
-
As private equity dry powder levels rise, the stage is set for significant deal-making activity in the latter half of 2024. Explore what this means for the global market and the strategies firms might employ to deploy this capital. #PrivateEquity #MergersAndAcquisitions #MALandscape
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
As private equity dry powder levels rise, the stage is set for significant deal-making activity in the latter half of 2024. Explore what this means for the global market and the strategies firms might employ to deploy this capital. #PrivateEquity #MergersAndAcquisitions #MALandscape
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
M&A Renaissance on the Horizon: The Impact of Interest Rate Cuts and Surging Private Equity Capital The anticipated interest rate cuts by the Federal Reserve in the second half of 2024 are expected to enhance the affordability of mergers and acquisitions (M&A), potentially increasing deal flow. While the Fed initially projected multiple cuts, recent indications suggest only one may occur soon. Despite the prospect of cheaper debt, immediate M&A activity may remain subdued as dealmakers have adjusted to the higher interest rates imposed since 2022. Current sentiment among buyers and sellers is mixed, but many are employing innovative strategies to navigate the high cost of debt and optimize their business models. Dealmaking approaches are evolving, with buyers focusing on performance metrics and utilizing alternative financing structures like deferred payments and earn-outs. This shift reflects a more cautious and selective M&A strategy, emphasizing long-term goals and synergies. Large buyers are increasingly financing deals with stock or cash to avoid debt costs. As confidence in the M&A landscape grows, a gradual recovery in deal activity is anticipated throughout 2024, driven by strategic acquisitions to foster growth and transformation, particularly in technology sectors. Below is a great article shared by Derek Avdul on Private Equity Dry Powder Levels. #MandA #PrivateEquity #MergersAndAcquisitions #BusinessDeals #BuySide #SellSide #FusionesYAdquisiciones #PE
As private equity dry powder levels rise, the stage is set for significant deal-making activity in the latter half of 2024. Explore what this means for the global market and the strategies firms might employ to deploy this capital. #PrivateEquity #MergersAndAcquisitions #MALandscape
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
📈📉 Interesting article from the Financial Times providing an appendix, or holistic market view to the recent news that Insight Partners are selling $1B in start-up stakes, including Wiz, to free up funds for investors. MitchelLake Group #investors #ventures #execsearch #growth https://lnkd.in/eGJ_iMNm
Buyout executives say distributions are ‘magic word’ after exit slowdown
ft.com
To view or add a comment, sign in
-
As private equity dry powder levels rise, the stage is set for significant deal-making activity in the latter half of 2024. Explore what this means for the global market and the strategies firms might employ to deploy this capital. #PrivateEquity #MergersAndAcquisitions #MALandscape
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
Commitments to secondaries continues growing with a buyer’s market with deal flow well in excess of dedicated capital. “LPs commit to secondaries funds because they see that this is a materially undercapitalised market,” says Jan Philipp Schmitz, executive vice-president at Ardian. Blackstone and Lexington Partners, each raised over $20 billion as the industry focuses on buying high-quality assets at compelling discounts. For 3SPOKE it begs the question, if “high-quality” (i.e. largely buyout) assets is undercapitalized, then what does it look like for venture capital. The biggest factor seems to be investors’ valuation hangover concerns from the 2020/2021 period keeping them on the sidelines. https://lnkd.in/eZnEnFqV
How well capitalised is the secondaries market?
secondariesinvestor.com
To view or add a comment, sign in
-
Blackstone Secures Over $22B for World's Largest Secondaries Fund 🌐💰 Global private equity titan, Blackstone, recently successfully garnered approximately $25 billion in commitments for its secondaries strategy, highlighting investors' anticipation for sustained liquidity amidst a challenging exit environment, reported PitchBook. 📈💼 1️⃣ Record-Breaking Fund Closure: Blackstone's Strategic Partners arm announced the closure of its Strategic Partners IX fund at a whopping $22.2 billion. This monumental fund is recognized as the industry's largest, dedicated to facilitating the offloading of assets by both limited and general partners on the secondary market. 🚀💵 2️⃣ Enhanced Investment Capabilities: Coupled with Blackstone's pre-existing $2.7 billion Strategic Partners GP Solutions vehicle, the firm now possesses significant resources under its Strategic Partners unit, managed by Verdun Perry. With total assets amounting to $67 billion, Blackstone is well-equipped to offer investors enhanced liquidity and diversification opportunities. 🌐💼 3️⃣ Increasing Importance of Secondary Strategies: With a challenging exit landscape characterized by reduced PE exits in the US and a nearly stagnant IPO market, secondary and GP-led continuation strategies are gaining prominence. These strategies provide alternative exit routes, enabling GPs to address investor demands for liquidity amidst prolonged asset retention due to inflation, geopolitical unrest, and market volatility. 📊🌍 4️⃣ Continuation Vehicles and GP-led Secondaries: Through continuation vehicles, GPs can maintain an asset by transitioning a prized asset from one fund to another. Such transactions offer flexibility, allowing LPs to liquidate on the secondary market while GPs retain assets, awaiting favorable market conditions for potential sales. 🔄💡 5️⃣ Industry Milestone: Blackstone's latest fund sets a new industry benchmark, surpassing France's Ardian, which closed its Ardian Secondary Fund VIII at $19 billion in 2020, according to PitchBook data. 🏆📈 Closing Thoughts: 🌟 As Blackstone solidifies its position with the industry's largest secondaries-focused fund, the firm underscores its commitment to navigating the evolving investment landscape and addressing investors' evolving needs for liquidity and diversification. The monumental success of the Strategic Partners IX fund further cements Blackstone's reputation as a global leader in private equity, adept at capitalizing on market opportunities and delivering value to its stakeholders. 💼 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors? 🤝 Need warm #LP introductions? 📝 Selling #secondaries to increase liquidity? 🧐 Looking for co-investments? ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #Blackstone #SecondariesFund #PrivateEquity #StrategicPartners #FundClosure #Investment #Liquidity #MarketTrends #venturecapital #IndustryMilestone
To view or add a comment, sign in
-
The private equity landscape is evolving, with dry powder levels reaching new heights in the first half of 2024. As investors seek strategic opportunities, understanding the market dynamics is crucial. Explore how this surge in capital could shape the future of M&A activity. #PrivateEquity #MergersAndAcquisitions #InvestmentTrends
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
The private equity landscape is evolving, with dry powder levels reaching new heights in the first half of 2024. As investors seek strategic opportunities, understanding the market dynamics is crucial. Explore how this surge in capital could shape the future of M&A activity. #PrivateEquity #MergersAndAcquisitions #InvestmentTrends
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
-
The private equity landscape is evolving, with dry powder levels reaching new heights in the first half of 2024. As investors seek strategic opportunities, understanding the market dynamics is crucial. Explore how this surge in capital could shape the future of M&A activity. #PrivateEquity #MergersAndAcquisitions #InvestmentTrends
Private equity dry powder growth accelerated in H1 2024
spglobal.com
To view or add a comment, sign in
Partner at Avant VC
2d👍