More Money To Fewer Funds Means GPs Must Stand Out More

The past couple of weeks have been full of encouraging news for private equity fundraising. According to recently released industry statistics, some 130 private equity funds held final closes worth slightly more than $69 billion between January and March, with buyout fundraising – the lion’s share of volume – nearly doubling. Silver Lake Partners closed… Read more

Technology is the Key to Unlocking Asian-Style Returns in Africa

By Palico member Andrea Bohmert, partner at Knife Capital in Cape Town Africa is still a neglected continent relative to its potential private equity opportunities. While those with an investment connection to Africa tend to have an overwhelmingly positive attitude regarding the opportunity the continent represents, those with no connection, on average, still have a… Read more

Moving Away from Plain Vanilla Strategies; Pledge Funds Grow in Popularity

Specialization is changing the profile of private equity. In the past two weeks, one major general partner set up a joint venture with a European financial services specialist, another purchased a commodity specialist, while yet another let it be known that it would be raising a multi-billion dollar energy fund, after shelving a fundraising project… Read more

Watch for More SWFs to Buy Stakes in Venerable LBO Shops

The past week has seen two transactions come to light where sovereign wealth funds have taken minority stakes in the holding companies of large leveraged buyout shops. At both buyout shops targeted by the sovereign wealth funds, the performance of current investment vehicles has been patchier than the blemish-free returns of their previous ones. 

Unexpected Offshoot of New Fund Structures: Longer-Term Investment

In the past three years, private equity strategies have become particularly creative, as LPs look to diversify away from blind pools overly dependent on leverage. Much of LP diversification has focused on co-investment, the buying and selling of secondaries, deal-by-deal structures and strategies emphasizing yield and short duration, all of which give LPs greater control… Read more

Worrying about the Averages is a Waste of Time

A great deal of academic energy goes into to trying to answer the question of whether private equity outperforms more liquid asset classes, and in particular, stocks. Chris Higson of the London Business School and Rüdiger Stucke of the University of Oxford recently published the most exhaustive study ever on this question. In The Performance… Read more