I recently attended the 2024 private market fund’s investors’ days in London. The two-day event was filled with private equity and private debt market professionals, who covered diverse topics, including deals’ deep dive, market development, and GPs’ expectations for 2025.
Panel discussions supplemented with direct LP discussions provided insights into managers’ viewpoints and investors’ concerns. Some titbits from the event:
- 🔸 Misalignment of sellers and buyers to remain as public markets are now more expensive than private
- 🔸 Uncertainty kills every deal – unknown EBITDA is the worst as multiple does matter
- 🔸 Specialization is the key to vetting proprietary sourcing
- 🔸 Investors want GPs to be more strict on their exit decisions (every day you are holding an asset is an active decision)
- 🔸 GPs expect holding periods to increase, especially for quality assets.
What to expect for 2025?
- 🔹 Higher rates for longer
- 🔹 Slower IPO market than expected by market participants
- 🔹 Strong [buyout] pipeline for 2025
- 🔹 Cash is back, focus on DPI
- 🔹 More Continuation Vehicles (CVs) and evergreen funds are expected
#alternativeInvestments #PrivateDebt #AssetAllocation #PrivateEquity
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