Amy Margolis

HETI RIPORT #KKR Can private equity produce excess returns above what is available in the public markets? It’s a question we’re getting from many individual investors as private equity investing opportunities have become more accessible through evergreen products. In answering this question, we start by looking at historical returns and some of the factors that have driven private equity’s outperformance relative to the public markets over time. We then address why we think private equity is positioned to continue outperforming in the future.

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We're proud to celebrate Sector Lead, Matt Witheiler's fourth consecutive naming to Forbes’ ‘The Midas List: The World’s Best Venture Capital Investors in 2024'. Kudos Matthew Witheiler - this is testament to your enduring impact on the late-stage VC industry. https://lnkd.in/eBdHwBG4 Wellington Management did not pay a fee to be considered. Winners were selected by a data-driven approach, the Midas List is produced from a combination of public data sources and the submissions of hundreds of investment partners across hundreds of firms each year. This award was announced on June 4, 2024, a submission made in January 2024 and is based on 5 years of trailing data. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results.

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Congratulations to all involved with this transaction. This successful mandate is another great example of Crown Partners’ dedication to providing premier expertise within asset-based financing markets as well as its ability to deliver positive results for its clients. #abl #assetbasedlending #debtadvisory #capitalmarkets #middlemarket #debt #banking #bankingindustry #liquidity #investmentbanking #privateequity

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The recovering deals market could get a lift from private equity-backed companies as early as the beginning of 2025. We outline what you need to know – plus what to look for in IPO candidates and portcos – in our capital considerations piece. https://lnkd.in/g-gw3hH5

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Hark's Founder and Managing Partner Doug Cruikshank will join in on the following panel on September 12 at the NYC Private Debt Conference. As the lines continue to blur between NAV Solutions and Secondaries, it is important for GPs and LPs to continue their education on these key topics.  #Secondaries #FundFinance #NAVSolutions #NAVFinancing #PrivateEquity #PrivateDebt #PrivateCredit

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Is Now the Best Time to Raise a Private Equity Fund? According to industry leaders, it just might be. "I’m much more optimistic at this point in the cycle in 2024 than I was in 2023 and 2022," says Andy Lund, global co-head of Houlihan Lokey's Private Funds Group. Despite expectations of a slowdown, the first half of 2024 has been unexpectedly successful for PE managers raising capital. U.S.-based funds closed on $155 billion by the end of June, slightly ahead of the first half of 2023 (PitchBook Q2 2024 US PE Breakdown). Alex Russ, head of North America for Evercore's Private Funds Group, sees this as an ideal moment for GPs with open funds. "We saw fewer new fundraise launches in 2024 than in 2022 and 2023, leading to a slight easing, which we expect to continue into the second half of this year," he notes. However, challenges remain. LP capital is still largely locked until M&A and exit activities resume. Evercore anticipates flat PE fundraising figures for 2024 compared to 2023. Moreover, other asset classes are vying for already limited institutional capital, with private credit showing particularly strong growth. In this context, Maria Konnikova’s "The Biggest Bluff" offers an insightful analogy. Inspired by "Theory of Games and Economic Behavior" by John von Neumann and Oskar Morgenstern, the book explores von Neumann's belief that poker epitomizes the delicate balance between skill and chance that governs life. Doing well at poker isn’t just about playing well; it’s about playing well relative to everyone else. And even with the best strategies, luck plays a critical role. As Nobel-winning economist Daniel Kahneman notes, "The successful funds in any given year are mostly lucky; they have a good roll of the dice. There is general agreement among researchers that nearly all stock pickers, whether they know it or not—and few of them do—are playing a game of chance." The last two years were like drawing a bad hand in poker for those raising funds. The book also emphasizes the importance of thinking like a Strategist—something I’ve honed throughout my career. Each move requires reassessment based on new information. You need a plan that evolves with feedback and supports long-term, good decision-making. If you’ve lost your chips, was it due to an unlucky situation—or because your strategy was flawed? A recurring mantra of Poker Hall of Famer Erik Seidel is "less certainty, more inquiry." If that becomes your guiding principle, not only will you actively listen, but you will also adapt and grow. For GPs, strengthening relationships with existing LPs is more crucial than ever. Now is the time to leverage your learnings and craft compelling narratives that showcase your commitment to value creation and strategic growth. By highlighting your firm's ability to navigate complex market dynamics, you can strengthen LP alignment and foster the partnerships needed for long-term success.

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If you are a private middle-market company seeking a Private Equity investment partner or preparing your sponsor backed business for a 2025 exit, it is more critical now to get your finance function in order. I am excited to share our observations on the challenges facing middle market companies and the critical, but frequently missing, building blocks that would improve how organizations convey their story to private markets. Creating a stable finance platform that is ready for growth will not only improve short term performance but will mitigate value destruction during a sale process. Read more here: Building Blocks That Matter

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Exciting to see infinitas capital and Opportuna featured in Bloomberg as part of the growing conversation around family offices and the secondary market. With liquidity tightening and investor demand building, Opportuna is seizing the potential of venture secondaries, offering an avenue to unlock liquidity and realize solid gains within a shorter timeframe. To learn more about @Opportuna and our strategy, reach out to Alban C. or Christopher L.R. Chuffart

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M&A will grow in 2025! Another factor: "Currently there are about 450 technology companies worth $1 billion or more owned by private equity, and half of those companies have been in their portfolios for five or more years...getting toward the end of the typical three to seven year investment hold period after which PE typically looks for an exit, CFO Dive previously reported." #Mergers #Acquisitions #ExternalGrowth #CUSOs #CreditUnions #PrivateEquity Capstone Strategic

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Secondaries and GP stakes are harmonious areas of investment: both capitalize on the growth in private markets… firms are increasingly recognizing the benefits that a partnership can bring in terms of providing capital and expertise.     Thanks to PEI for the feature and Ward Young for the partnership on the demand we’re seeing across the GP stakes landscape!  

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Blackstone Acquires Jersey Mike's Subs in $8 Billion Deal - Blackstone has announced an agreement to acquire the popular sandwich chain Jersey Mike's Subs for $8 billion, expanding its investments in the fast-casual dining sector. - The acquisition highlights Blackstone's confidence in Jersey Mike's growth potential and the robust market dynamics of the fast-casual restaurant industry. - Jersey Mike's previously enjoyed significant expansion, boasting a strong brand presence and loyal customer base across numerous locations. - This acquisition forms part of Blackstone's strategy to capitalize on consumer trends favoring quick-service dining experiences, leveraging Jersey Mike's established operations. #Blackstone #JerseyMikes #Acquisition Read more: [https://buff.ly/3AL0yFx

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At KKR, we see compelling opportunities in the North American middle market, which I recently discussed with Kirk Falconer at Buyouts. As I told Buyouts, because mid-market companies are small and earlier in their development, "value creation can have a greater impact. Small size makes it easier and faster to steer the ship and grow organically and inorganically." Read more here: https://lnkd.in/e2xUs-gN

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🔍 Curious about the value of attending private equity conferences? Our new article breaks down 25 compelling reasons why executives should invest in their professional growth by attending these events. From networking with key industry players to acquiring strategic insights, the ROI is substantial. Read more here: https://buff.ly/3LZnxOV 💼 Learn more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton here: https://buff.ly/46DZD46 #PrivateEquity #CareerGrowth #ExecutiveRoles #BlackmorePartners #PECareers

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🔍 Curious about the value of attending private equity conferences? Our new article breaks down 25 compelling reasons why executives should invest in their professional growth by attending these events. From networking with key industry players to acquiring strategic insights, the ROI is substantial. Read more here: https://buff.ly/3LZnxOV 💼 Learn more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton here: https://buff.ly/46DZD46 #PrivateEquity #CareerGrowth #ExecutiveRoles #BlackmorePartners #PECareers

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According to KPMG's M&A Outlook for Private Equity in 2024, PE firms are looking at distressed assets for a turnaround opportunity. Here is what it means for business owners: The current high-interest rate environment is creating distress in many businesses. Distressed business will naturally be available at discounted prices, providing a golden chance for PE firms to acquire and rejuvenate these businesses. Why Distressed Assets are Attractive: ➡️ Discounted Prices: High interest rates force many businesses into distress, leading to lower valuations. ➡️ Turnaround Potential: With strategic management, distressed businesses can achieve significant value enhancement. ➡️ Higher Multiples: Successfully turned around businesses often fetch higher exit multiples, providing lucrative returns. If you are a business owner looking to sell your business, here are a few key points to consider: ➡️ Know Your Worth: Understand the intrinsic value of your business beyond the current distress. ➡️ Highlight Potential: Emphasize the long-term growth prospects and strategic advantages. ➡️ Negotiate Smartly: Engage with multiple buyers and be transparent about your financials to negotiate a better deal. Investing in distressed assets is not just about capitalizing on lower prices; it's about seeing the potential for transformation and growth. If you're a business owner, leverage this environment to position your business attractively for turnaround investors. #entrepreneurship #startups #venturecapital #businessgrowth #startupsuccess Image Source: KPMG Serial Entrepreneur & Investor Helping Startups Become Unstoppable – David Hauser

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“Repel as much as they attract.” At our Innate Capital Partners portfolio gathering last quarter, the presentation by Maureen Farmer, CEO Advisor and Stephen Pitt-Walker, JD, FGIA included a provocative insight: “Powerful brands repel as much as they attract.” I was reminded of this insight in a store when my eight-year-old son immediately gravitated towards a candy called Toxic Waste. The product is further labeled Hazardously Sour Candy. A strong brand both (1) says what it is and (2) signals what is isn’t. This applies to brands for consumer products, business services, and - very much so - to private equity investors. To build a powerful brand, don’t try to appeal to everyone. Toxic Waste is not for the faint-hearted. It’s not for people looking for established confectioneries or safe brands. The brand does, however, resonate with a segment of customers. My son eagerly bought Toxic Waste and he enjoyed the treat. Candy Dynamics Richard Deer Laura King Matthew Quint Center on Global Brand Leadership Columbia Business School Columbia Business School Private Equity Program Laura Sosa, EdD, MBA, CMA Elizabeth Rzasa, M.A. #branding #marketing

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