Trends & Research

Probitas Partners’ latest LP survey found that 76% of LPs globally are interested in US middle market buyouts over other sectors, while 41% said purchase price multiples for this specific sector are too high and could hurt returns.

Private equity firms in Asia are facing fierce competition and the only way to succeed is through operational value creation, according to AlixPartners’ Private Equity Value Creation in Asia-Pacific Survey.

The Private Equity Growth Capital Council found in its trend report that exits slowed in the third quarter from a record in Q2, while new private equity investments rose 15% to $154bn.

As LPs like the California Public Employees’ Retirement System say they will focus on smaller funds, National Center for the Middle Market (NCMM) executive director Tom Stewart discusses the attractions and challenges of the mid-market.

Fund advisory Triago found that shadow commitments have risen faster than classic fund commitments, and are estimated to account for 26% of capital raised this year.

Private equity buyouts have declined as a proportion of M&A activity for the third consecutive year, despite almost $500bn waiting to be invested, according to a report by S&P Capital IQ.

Japanese corporate pension funds are set to increase their allocation to private equity, according to Tokyo-based global market strategist at JP Morgan Asset Management Akira Kunikyo. Allocations are expected to be targeted at local funds.

Palico’s poll of 92 LPs found that 59% of them will seek direct investing.

GPs are now more likely to fall into three distinct categories – publicly-listed global asset managers, regional or industry specialists, and small start-up funds, according to a study by the London Business School’s Coller Institute of Private Equity.

Adjusting for leverage and sector-geography exposure, PE deals returned 9.8% per year for investors, with sales growth the most significant driver.