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.