With the European private equity market back to business as usual after the summer, Mergermarket's funds editor Harriet Matthews and senior private equity reporter Rachel Lewis discuss what to expect for the rest of the year, with a guest interview from Chris Boycott, corporate partner at Linklaters.

Deal volume for the year to date stands at around EUR 58bn, versus EUR 216bn for FY 2022; meanwhile, down significantly at just 37% of last year's full-year figure, according to Mergermarket data.

Chris Boycott joins the podcast to share his outlook on private equity activity, discussing topics including the bright spots in dealmaking and gaps in buyer and seller expectations He also discusses the challenges that sponsors are currently facing, as well as the areas that are attracting sponsor interest in the current market.

Following up with some key takeaways from the interview, the team aims to reach a consensus on what Q4 and the start of next year might look like.

1:49 – Data round-up

4:18 – Market sentiment

6:56 – Upcoming processes

9:40 – Interview with Chris Boycott, corporate partner at Linklaters

27:12 – Key takeaways

32:00 – Pockets of activity

34:09 – Fundraising outlook

You can listen to the podcast HERE, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.

If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.

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Blackstone senior managing director Alex Walsh speaks to Unquote editor Harriet Matthews about his career in private equity, LGBTQ+ representation and inclusion in the industry, and the outlook on investing in the current market.

Walsh began his career in the financial services industry in 2004 and joined Blackstone in 2022, with a focus on private equity consumer and leisure investments. Beyond his investment team responsibilities, he is also a member of the firm’s LGBTQ+ inclusion taskforce, OUT Blackstone.

In an interview with Unquote, Walsh discusses how and why he got into the private equity industry, as well as how the industry has changed during this time.

He also discusses LGBTQ+ representation and inclusion in the private equity industry, including what workplaces can do to create an inclusive environment and how this fits with Blackstone’s overall ESG goals.

In the final part of the conversation, Walsh shares his outlook on the current market, taking into account the rising cost of capital and Blackstone’s approach to deal sourcing.

2:12 – Alex’s career trajectory and motivation

5:11 – Skills and experiences

7:32 – PE industry development

10:33 – LGBTQ+ representation development and inclusion

15:00 – Cementing inclusivity in the workplace

17:30 – ESG at Blackstone and its portfolio

20:18 – The macro picture

23:02 – Deal sourcing and opportunities in the current market

If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel on Apple Podcasts.

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With private equity exits hitting a post-pandemic low point and dealmaking proving challenging due to financing conditions and valuation gaps, Harriet Matthews and Rachel Lewis discuss the current PE exits landscape, with a guest interview from Equistone senior partner Steve O’Hare.

Secondary buyouts (SBOs) in particular have suffered in 1H 2023, with just 41 getting over the line as GPs remain reluctant to bring assets to market and are cautious around deployment on the buyside.

In an interview with Unquote, O’Hare shares his and Equistone’s experience of making exits in the current market, having made eight realisations in the past year and a half. He discusses topics including the importance of preparation in bringing an asset to market, the role of advisers, and the GP’s value creation methods.

Following the interview, the Unquote team assess key takeaways, including the role of financing in getting deals over the line as well as the market’s hope for a wave of pent-up demand as advisers appear to be getting increasingly busy.

The team also assesses the prospects for GP-led secondaries as an exit route, as well as the changing role of EBITDA in auctions, with prospective buyers placing more emphasis on cashflows and profitability.

1:20 – Breaking down Mergermarket’s data

4:56 – Assessing the obstacles

7:38 – Interview with Steve O’Hare, senior partner at Equistone

21:45 – Key takeaways: Debt

27:00 – Pent-up demand

28:40 – GP-led hopes and creative solutions

If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel here on Apple Podcasts.

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The Unquote team talks about the topics at the forefront of GPs’ and LPs’ minds at SuperReturn in Berlin and what this means for the private equity industry in 2023 and beyond: ranging from value creation, fundraising and private markets consolidation, to Kim Kardashian’s foray into the venture capital world.

Hosted by Harriet Matthews, Unquote’s Min Ho and Rachel Lewis digest the key takeaways from this year’s gathering of private equity practitioners in the German capital.

While much uncertainty remains around valuations and fundraising perspectives, the private equity industry is looking for ways to keep deploying and putting investors’ capital to good use.

With multiple arbitrage expectations less buoyant, GPs are also looking for ways to create value in their portfolios, be it via organic growth initiatives or bolt-ons.

We ask what all of this will mean for the second half of 2023 and beyond, bringing together the insights gleaned from conversations with market practitioners on the ground in Berlin and beyond.

1:08 – State of the market

4:22 – Value creation in focus

6:00 – Financial services consolidation

9:00 – Fundraising outlook

12:15 – Kim K takes Berlin

14:53 – Deployment pressures and P2Ps

16:10 – What lies ahead?

If you would like to hear more podcasts produced by ION Analytics, you can access the ION Analytics channel here on Apple Podcasts.

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Unquote speaks to Fabio Ranghino, partner and head of sustainability and strategy at Italy-headquartered sustainability-focused investor Ambienta, about his current outlook on dealflow and ESG investing, as well as the next stage of the firm’s growth.

Over the course of May 2023, the GP kicked off the deployment of its fourth EUR 1.55bn buyout fund with the acquisition of plastic recycling systems developer Previero, and it rounded off the deployment of its third fund with the acquisition of education software platform Spaggiari.

Ranghino discusses how Ambienta is assessing investment opportunities and its current portfolio against a challenging macro backdrop, while eyeing potential expansion of its existing private equity strategy. Having spent more than 12 years with Ambienta, Ranghino also gives an overview of how sustainable investing has developed during his time in the industry.

Ambienta is headquartered in Milan and has additional offices in Munich, London and Paris. It operates its sustainability-focused strategy in private equity via its flagship private equity funds, in public markets via its Ambienta X arm, and – most recently – in credit.

00:59 – Intro

1:56 – Investment opportunities in the current market

8:18 – Ambienta’s approach to exits

14:14 – ESG and sustainability in focus

21:39 – The LP view

23:36 – Ambienta’s future growth

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Accessing allocations from LPs is a notoriously tough process in the current market, leading to a wealth of complications for fundraising and dealmaking.

There are also a number of factors driving individual investors and smaller institutions towards private markets and their returns, but simplifying and streamlining the process of onboarding these investors will be paramount to securing it.

Titanbay’s Eskebæk discusses Titanbay’s offering and the longer-term trends behind the adoption of these investment solutions. Following a discussion of some key takeaways from the interview, the Unquote team looks ahead to other sources of capital that sponsors are looking to harness in the current environment.

0:42 – Intro

1:23 – LP liquidity

2:41 – Managing access

5:29 – Interview with Thomas Eskebæk, CEO of Titanbay

19:33 – Key takeaways

24:00 – Future sources of capital

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Funds editor Harriet Matthews is joined by Unquote’s reporters, who share their insights from their conversations with market practitioners, backed by preliminary statistics from Unquote Data.

According to preliminary figures on buyout activity from Unquote Data, Q1 2023 saw dealmaking fall to its lowest point in more than a decade.

Meanwhile, although the overall amount raised by buyout and generalist GPs in this quarter held up well year-on-year, the actual number of closes is also down, with large swathes of capital scooped up by large fundraises.

Against this backdrop, sponsors are having to manage their own liquidity issues, be it at management company or portfolio level. Meanwhile, venture capital and growth investors are grappling with an uncertain market, with practitioners on the look out for bright spots amid an overall slowdown.

0:58 – Preliminary Q1 figures from Unquote Data

4:28 – Liquidity issues with Rachel Lewis

11:48 – GP-led secondaries with Min Ho

20:49 – Venture and growth activity with Ero Partsakoulaki

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Approaches to ESG have shifted over the years across public and private markets, evolving significantly from a pure risk mitigation and divestment mindset.

Bain Capital acquired packaging producer Fedrigoni in 2017, with BC Partners joining as a co-investor in 2022. Sessa discusses the company’s growth potential in relation to ESG initiatives and value creation, as well as Bain Capital’s investment outlook for 2023.

Following a discussion of key takeaways, the team looks ahead to the future of ESG, and whether the framework and investment approach are under threat as macro clouds gather.

1:11 – Current ESG trends and topics

4:51 – Recent coverage

8:01 – Interview with Ivano Sessa of Bain Capital

29:08 – Key takeaways

35:32 – What’s next for ESG?

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A couple of weeks on from the conference and with the reporting team now firmly reinstalled in the City of London, the themes and concerns raised by industry professionals at the conference are still present.

Although fundraising and dealmaking obstacles remain, sponsors are looking for ways to overcome these, seeking out resilient companies or those with significant value creation potential.

Bright spots also include value investing, impact and healthcare – and it is good news for those who are ready and willing into this challenging environment.

1:29 - A change in sentiment

3:33 - Fundraising woes

5:20 - Valuations in question

6:51 - Bright spots?

9:19 - LP preferences

10:53 - The road ahead

You can listen to the podcast in the audio player above, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.

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In a market rife with uncertainty, many sponsors are shifting their focus from exiting companies via structured, broad auction processes, instead preferring to hold more direct, bilateral negotiations with credible parties to secure deals.

Meanwhile, the lack of availability of debt has driven some sponsors to do all-equity deals with a plan to seek financing later, or to take on a co-investor at the outset to reduce their equity exposure to an asset.

Rachel Lewis and Harriet Matthews explore examples of this trend and discuss how GPs are getting creative on exits and investments.

1:04 – Review/preview

1:54 – Changing auction dynamics

3:33 – Bilaterals are back

4:57 – Underwriting woes

6:51 – Getting creative

12:19 – Light at the end of the tunnel?

Click the following link to read more about this topic on Unquote.com: https://www.unquote.com/unquote/analysis/3028497/going-going-not-gone-pe-auctions-bid-for-relevance-in-risk-off-market

You can listen to the podcast in the audio player above, as well as your favourite podcasting platforms, including Spotify and Apple Podcasts.

Theme music: ©2012 Kick Up The Fire