MACRO INVESTMENT MARKET CHALLENGES A HEADWIND FOR PRIVATE EQUITY VALUATIONS Private Equity Sponsors are facing their most challenging valuation market since the great recession of 2008–09. Heightened inflation and interest rates will continue to be valuation headwinds. …

Per Fortune, “Emerging Managers are on track to raise less this year than they have in a decade.” A challenging time for a capital raise to be sure. However — it is important to put headlines like this into the proper perspective. Going back a decade ago would put us…

According to The Wall Street Journal, the SEC is coming to help private equity, venture capital, and hedge fund investors. As Reagan is quoted as saying: “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’” All joking aside, many in…

So much for the reports of a struggling private equity market… At a time when private equity mega-deals are under pressure, it is important to put it into perspective and understand just how dominant a player the private equity industry has become. As recently reported in Fortune, Blackstone recently passed…

The titans of finance are now courting plumbers and electricians… Yes, you heard that right. Now that the cost of capital (debt) has gone up, ‘going big’ in the PE world has given way to ‘going small’. While mega deal activity has dried up, private equity dealmaking with smaller ‘mom…

Investors often separate private equity from public equity in their thinking and planning. That is a mistake. Private equity valuations ultimately converge with public market valuations. However, this convergence takes time and always operates with a lag. As detailed in PitchBook today, many private equity investors are currently experiencing this…

While the private equity deal environment continues to be fairly active, a lack of exits remains an issue. The attaches PitchBook article details what the future may hold if the absence of exits continues. From the article: “Private equity’s problem began with a steep decline in exits in Q1 2022…

Help Wanted! Financial expertise at PE-backed portcos. Half of portfolio company CFOs and Board Members say that it will be a challenge to meet their private equity sponsor’s goals without key finance expertise (which they are struggling to find). Per The Wall Street Journal: “Nearly half of private-equity fund managers…

As the macro environment adjusts, so does private equity strategy. Per PitchBook Data today, many of the larger private equity buyout shops have pivoted their business away from mega deals to smaller add-ons in this market. From the article: “As of Friday, the overall value of private-equity-backed deals is down…