Specialties among Megafunds/Large-Cap Funds in London/Europe

Hey everyone,

I wanted to ask whether someone could give me some pointers as to which top funds in London focus on which types of industries/deal structures.

I would appreciate info on the following funds:

  • Blackstone
  • Carlyle
  • KKR
  • Apollo
  • Warburg Pincus
  • CVC
  • Bain
  • Advent
  • TPG
  • H&F
  • Permira (Tech-focused right?)
  • Apax (have heard HC)
  • EQT
  • Cinven
  • BC Partners

Comments (5)

 
Most Helpful
Dec 14, 2019 - 12:06pm

I would make a distinction between MFs operating from a single London office in Europe (BX, Apollo) vs MFs with a bunch of satellite offices in the continent (KKR, Carlyle, Advent, Bain Cap) - the implied sourcing model is quite different.
US funds tend to target cheap industrial carve-outs / P2P with a significant operational improvement angle. KKR in particular can leverage their Capstone structure to improve operations. This also means that a PE professional in their buyout team tends to have less exposure to hands-on operational matters and can focus on the transactional side of PE.
KKR and Carlyle both just raised €6bn flagship European funds, they should logically start going on a hiring spree soon, if not already done.
EQT's strength really is their infra franchise which is outstanding, especially in telecoms. There is however a thin porous line between EQT Infrastructure and EQT Partners with the funds exchanging assets at market valuations quite often (e.g. IP Only) once the infra assets are de-risked.
H&F doesn't mind overpaying for quality assets / niches they are very comfortable in - a lot of tech/media investments

 
Dec 14, 2019 - 5:18pm

Thank you for the insights, Moneyrella! You said - I would make a distinction between MFs operating from a single London office in Europe (BX, Apollo) vs MFs with a bunch of satellite offices in the continent (KKR, Carlyle, Advent, Bain Cap) - the implied sourcing model is quite different.

Can you elaborate please?

Thank you!

Array
 
Dec 15, 2019 - 4:33am

There are pros and cons to the two models. MFs that have offices throughout Europe should have an easier time sourcing local deals. They can better convince existing family shareholders that they are invested in their country, that they have a footprint there etc. It could be a key differentiating factor when closing a deal. You are also closer to the management teams of your portfolio companies.
However, MFs operating from London have a leaner, more efficient structure with the full team being able to meet everyday. As a junior, you would be able to enjoy working with other juniors whereas in a continental office you can get stuck being an Associate with no one below you on the organizational chart for 5 years. This is because the continental office teams are very small and will usually only move up someone if someone above is moving elsewhere.

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