Alpha FMC

The Next Generation Private Equity Investor

Joe Docker, Matt Pandit

Private Equity returns have benefited from the continued bull market over recent years, driven by access to strategies unavailable to traditional managers, high exit multiples and able buyers.

Outperformance against other asset classes has continued to draw LP’s capital in record numbers – notably remaining attractive to Pensions managers looking to close their asset-liability gaps.

GPs however, left with ample cash (including record ‘dry powder’ – unutilised funds), are facing various challenges:
•  A high-multiple environment to invest in, following the sustained bull run
•  Increased competition, from both managers looking to put capital to work and corporates seeking inorganic growth
•  An uncertain economic outlook and predictions of a slowing economy post-2019

With this in mind, GPs need to ensure not only that they can unlock the operational post-acquisition value behind more expensive deals, but may look towards alternative sources of return to continue their success – perhaps exploring retail channels or new products.

This thought leadership piece will look at the impact and opportunities of the ‘Next Generation’ of Private Equity investors which includes family offices, retail investors and pension funds as well as how Alpha can help utilise this growing market.

About the Author

Joe Docker, Matt Pandit

Joe is an Executive Director at Alpha with over 11 years’ experience consulting to the Asset Management industry, consulting leading asset managers both in the UK and internationally. He has a depth of experience across both the traditional and alternative sectors with a particular focus on operations and outsourcing

Matt is an Analyst at Alpha and leads thought leadership initiatives within the Alternatives practice. He has consulting experience across the change management lifecycle from strategy to definition, translation and delivery for a number of global asset managers. Matt has a strong interest in Alternatives, always keeping up with the latest industry trends and is a CFA Level III Candidate