Hi,
How is the current environment for PE investments, considering topics like Brexit (first decision made), Corona virus, upcoming elections in the US etc? Is it a risky envorinment full of uncertainty?
| +28 | Imposter Syndrome: PE to Publics | 4 | 4d |
| +26 | Blank | 15 | 11h |
| +26 | Ares buying LGP...now what? | 8 | 3d |
| +19 | Do PE VPs Always Have An Associate Under Them? | 12 | 3d |
| +18 | GTCR vs BDT MSD vs MDP | 16 | 3d |
| +18 | Hours at MF Infra Funds in London | 4 | 16h |
| +16 | Committing to CD&R? | 12 | 10m |
| +12 | Which PE funds are actually great investors | 1 | 2d |
| +11 | London Version: PE Check-in on Attrition, Promotions and State of Play | 6 | 2d |
| +9 | Roark FT | 12 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Lucky you, in 2 days you will get the answer: https://www.bain.com/insights/events/superreturn-2020/contact-us/?gclid…</a">Bain PE report 2020
Thank you very much. Do you have an opinion on this (given your range of super helpful comments on this forum? Are PEs currently focused on anti-cyclical assets ?
Answer is yes and no, PE funds will buy assets where they see value. Any cyclical is definitely a theme for PE funds right now BUT, that makes these assets expensive. Seen quite a few chemical deals although they are very cyclical companies but they bought these at cheap multiples thus are attractive relative to other assets.
I would say fairly risky. EBITDA is at alltime high for most companies, while in the meantime multiples are up too. People are scared of recession/global crisis. Well established PEs however are still buying cyclical consumer businesses (maybe also due to asset scarcity). In the end, if you are an established fund, you just keep buying and raising and through the cycle you will make your money (on carry or even management fee if you're big enough).
https://www.bain.com/insights/topics/global-private-equity-report/</a">Bain PE report has been published as is the https://www.mckinsey.com/~/media/mckinsey/industries/private%20equity%2…</a">McKinsey PE report
Awesome, thanks for the headsup. Figure 1.5 is pretty crazy. If something bad happens and rates go up things will turn sour really quickly.
Also, not sure about you other EuroMonkeys but my personal experience is that the multiple increase is primarily from green/tech/ecommerce. Most other sectors seem to stay the same.
Non nesciunt dolor aut. Rerum accusantium excepturi voluptate nostrum ad sapiente eaque et. Officiis in dolores voluptatum voluptatem molestiae fugit omnis. Voluptatem a nam molestias vero illo maxime numquam. Qui repellendus impedit quam laudantium atque.
Eius quia suscipit porro aut molestias eum. Dicta porro saepe provident et. Eveniet deleniti totam voluptatem distinctio ipsam ullam consequatur velit. Non omnis odio sunt praesentium quo at. Porro odio odit eos doloremque consequuntur. Explicabo dicta ut officiis quia architecto et magnam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...