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PE Assets and Creating Value

PwC

THE TRUTH LIES IN THE EXIT: CREATING VALUE IN PE ASSETS IN EUROPE IN TIMES OF MULTIPLE CONTRACTION

After years of upswing, the European private equity market could be affected by negative price effects in the coming years: According to a recent PwC analysis, the rapid rise in multiple arbitrage may decline sharply in the coming years - or even become negative. Steve Roberts, Head of Private Equity at PwC in Germany, explains exactly what this means and what investors can do to keep their returns stable.  >more


Statistics 2018 Central and Eastern Europe

Invest Europe

CENTRAL AND EASTERN EUROPE STATISTICS 2018

An Invest Europe's Special Paper on private equity activity in Central and Eastern Europe. This report provides annual activity statistics for the private equity markets of Central and Eastern Europe in 2018. >more


European Property 2019

Deloitte

PROPERTY INDEX 2019: DER EUROPÄISCHE IMMOBILIENMARKT IM VERGLEICH

As in previous years, the eighth edition of the Deloitte Property Index shows a relevant price increase for urban residential real estate - both in Germany and even more so in other European countries. The German purchase price growth for real estate slowed slightly, while other countries, such as the Czech Republic, Hungary and Portugal, are showing double-digit growth rates in this area in some cases. Compared with other European real estate markets, the average rental price level in Germany is still relatively low, which also points to sustained momentum in German rents in the future. >more


PE Confidence Survey Summer 2019

Deloitte

PRIVATE EQUITY CONFIDENCE SURVEY - SUMMER 2019

The private equity (PE) market in Central Europe (CE) remains quieter than the 2017 heydey, which saw a number of large exits and fundraisings make headlines. The market may be reverting to an equilibrium, with a steady flow of mid-market deals supporting growing businesses in the region. We are also seeing increasing venture opportunities, both entries and exits, with a number of funds being raised in this space. >more


German PE Transactions H1 2019

Ernst & Young

PRIVATE EQUITY: DER TRANSAKTIONSMARKT IN DEUTSCHLAND H1 2019

Financial investors started slowly into the first half of 2019: Although they carried out just as many transactions as in the same period of the previous year - 112, the transaction value was only 7.3 billion euros. The figure for the first half of 2018 was 11 billion euros. >more


PE Panel Frühjahr 2019

CMS Hasche Sigle / FINANCE

PRIVATE EQUITY PANEL FRÜHJAHR 2019

For the Private Equity Panel, the FINANCE editorial team, together with the law firm CMS Hasche Sigle, interviews senior investment managers from more than 50 leading private equity houses in Germany three times a year about their current market assessment. The report compiles the most exciting statements on the business prospects of their portfolio companies, the attractiveness of certain sectors and the financing environment. >more


Digital PE

West Monroe Partners

DIGITAL AT THE SPEED OF PRIVATE EQUITY: HOW TO INCREASE EBITDA THROUGH DIGITAL INVESTMENTS IN THE MID-MARKET

Digital transformation is fundamentally altering the way most industries do business. And in the sky-high valuation environment that has defined the PE market in recent years, the need to identify innovative and effective investment angles to create value has never been more pressing. Looking ahead, it is the ability of PE firms to develop digitally-led investment theses, carry out effective digital diligence, and deliver on their strategies that will separate the industry’s best and weakest performers in the years to come. >more


M&A Panel Frühjahr 2019

CMS Hasche Sigle / FINANCE

M&A PANEL FRÜHJAHR 2019

For the FINANCE M&A Panel, the FINANCE editorial staff, together with the law firm CMS Hasche Sigle, interviews M&A managers in companies and investment banks anonymously three times a year about their current market assessment. The report compiles the most exciting statements on deal drivers, deal breakers and the financing environment. >more


Co-Investments

Cambridge Associates

READY, STEADY, CO-INVEST

Co-investments are one of only a handful of control levers within a limited partner’s (LP) toolbox, and we encourage all private market investors, regardless of size, to consciously consider implementing a co-investment program. In 2015, we provided an introduction to the multitude of benefits co-investments may add to a private investment program. Since then, Cambridge Associates’ Co-Investment practice has sourced more than 1,000 investment opportunities, totaling nearly $90 billion of capital requirement. We have worked extensively with clients to successfully integrate co-investments into many private investment portfolios. Drawing on our collective experience, this follow-up piece highlights an actionable co-investment framework for investors. >more


PE Trends

Ernst & Young

PE PULSE: QUARTERLY INSIGHTS AND INTELLIGENCE ON PE TRENDS

2018 represented the strongest year for PE activity since before the financial crisis, as strong earnings, overall positive macroeconomic sentiment and the need to deploy more than US$700b in dry powder won out over the headwinds of increasing competition and continued high valuations. However, 2019 is off to a slower start as concerns around Brexit, escalating trade tensions and the late stage of the current cycle all seem to be coming to the forefront. In Q1 2019, firms announced transactions valued at US$96b, down 24% from Q1 2018. Amid this backdrop, PE firms are seeking ways to remain active and engage in opportunities where they can add value while avoiding the worst of today’s high-price environment. PE firms are leveraging add-ons, growth capital, and complex carve-outs as strategies to build compelling portfolios and mitigate continued high valuations, which have averaged 10.6 times EBITDA over the last two years, according to Leveraged Commentary and Data (LCD). >more


Global PE Summer 2019

Coller Capital

GLOBAL PRIVATE EQUITY BAROMETER: SUMMER 2019

Two thirds of investors will support a GP decision to sell a stake in its management company if it is to facilitate generational change at the business or to strengthen the resources the manager focuses on its market, according to the 30th edition of Coller Capital’s Global Private Equity Barometer. By contrast, only a third of LPs think it appropriate for a manager to sell interests in its management company in order to fund GP commitments or launch new products. >more


Real Estate May 2019

Ernst & Young

REAL-ESTATE-ASSET-MANAGEMENT-STUDIE MAI 2019

The vast majority - 90 percent - of German asset management companies want to increase their holdings in the residential asset class. Nearly 90 percent of the companies are counting on a long-term holding period of more than eight years. These are the results of the current Asset Management Study 2019, conducted jointly by EY Real Estate and Vonovia. For the study, 40 companies were surveyed that represent a cross-section of the German asset management landscape.  >more


PE Report Spring 2019

Debevoise & Plimpton

THE PRIVATE EQUITY REPORT: SPRING 2019

The environment for private equity is particularly dynamic at the moment. Geopolitical developments are impacting market access and conditions, while regulatory and policy changes bring new — and sometimes more favorable — compliance requirements. And new vehicles and opportunities emerge to allow capital to be put to use under a range of investment strategies. This issue of the Private Equity Report explores several recent developments, changes and opportunities relevant to private equity sponsors, investors, partners and managers. >more


Real Estate Global Outlook 2019

PwC

EMERGING TRENDS IN REAL ESTATE: THE GLOBAL OUTLOOK FOR 2019

The political and economic uncertainty of the past year will likely persist in key markets throughout 2019, yet real estate continues to attract capital and demonstrate its enduring appeal as an investment asset class. Granted, there was an ebb and flow of capital around the regions, but the fact that overall global deal volume increased at all is testimony to the strength of demand for the income real estate offers, given the turbulent geo-political and economic conditions for investment in 2018. If anything, however, 2019 is likely to present a greater test of the industry’s collective nerve. >more


European PE Report 2018

Invest Europe

EUROPEAN PRIVATE EQUITY ACTIVITY REPORT 2018

The Invest Europe Yearbook - 2018 European Private Equity Activity - is the most comprehensive source for European private equity fundraising, investment and divestment data. With data on more than 1,400 European private equity firms, the 2018 statistics cover 89% of the €688bn capital under management on the European market. >more


Venture Funding Q1 2019

KPMG

VENTURE PULSE: Q1’19 GLOBAL ANALYSIS OF VENTURE FUNDING

KPMG Enterprise’s Global Network for Innovative Startups launched the Q1’19 edition of the Venture Pulse Report. The report analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. This edition of the quarterly series provides in-depth analysis on venture capital investments across North America, EMA and ASPAC and will cover a range of issues such as financing and deal sizes, unicorns, industry highlights and corporate investment. >more


Gold Industry

McKinsey & Company

CAN THE GOLD INDUSTRY RETURN TO THE GOLDEN AGE?

The gold industry today finds itself at an inflection point between the recent era of cost-out initiatives and balance sheet deleveraging, and an increasing need to focus on growth and the replenishment of depleting gold reserves. However, after a period of impairments, write-downs, and value destruction following the M&A frenzy of the last gold price boom, shareholders in search of improved returns and greater management accountability are unlikely to support significant M&A programs which have been the traditional mainstay of production growth and gold reserve expansion for major gold companies. The future strategic options to drive growth will differ across industry players, but all will need to consider a mix of organic and inorganic approaches if they want to return to growth in an economic and sustainable way. >more


Relationship PE-CEO-CFO

Alix Partners

INVESTMENT SUCCESS ISN'T JUST ABOUT THE NUMBERS. IT'S ABOUT THE PEOPLE: SPECIFICALLY, THE PE-CEO-CFO RELATIONSHIP

In our fourth annual private equity (PE) leadership survey, we take a closer look at the ongoing disconnect between portfolio company (portco) CEOs and their PE owners. This report, part one of two, focuses on three main themes: (1) Proactive management of the triangular relationship between PE sponsors and portco company CEOs and CFOs. (2) Early understanding of major misalignments related to the role of human capital in PE firms’ investment theses. (3) Disconnect between beliefs and behaviors with regard to predeal assessment of prospective portcos. >more


PE and Responsibility

PwC

PRIVATE EQUITY RESPONSIBLE INVESTMENT SURVEY 2019

Private equity (PE) houses and their investors are increasingly engaging with responsible investment. Environment, Social and Governance (ESG) considerations are becoming important factors in investment decision making and portfolio management. We surveyed 162 PE firms (General Partners or GPs) and investors (Limited Partners or LPs) to explore how they were implementing and developing their responsible investment approach. It’s clear that the approach is maturing, particularly in Europe. 91% of respondents have already adopted or are currently developing a responsible investment policy. And a vast majority (72%) either currently use or are developing KPIs to track, measure and report on the progress of their policy. The number of dedicated responsible investment or ESG teams is also on the rise at 35% (compared to 27% in 2016). >more


Asia-Pacific PE 2019

Bain & Company

ASIA-PACIFIC PRIVATE EQUITY REPORT 2019

Asia-Pacific private equity (PE) investors kept the party rolling in 2018, setting new highs for the industry after a record-breaking 2017. Deal value peaked, exit values hit an all-time high and returns were strong. However, fund-raising declined, and increased competition created tougher market conditions for many PE funds. Investors’ appetite for technology and Internet companies was undiminished, and deal size in these two sectors mushroomed. >more


European Start-Ups March 2019

Ernst & Young

START-UP-BAROMETER EUROPA: MÄRZ 2019

Last year, investors again invested record sums in European start-ups: The total value of start-up financing rose by 11 percent year-on-year to EUR 21.3 billion. The number of financing rounds increased by 15 percent to 4,199. Despite the threat of a Brexit, Great Britain was able to maintain its leading position within the European start-up scene: a total of 7.2 billion euros were invested in British start-ups, 12 percent more than in the previous year. German start-ups received 4.6 billion euros, 7 percent more than in 2017. >more


Private Markets

McKinsey & Company

PRIVATE MARKETS COME OF AGE

Private markets stayed strong in 2018. True, fundraising was down 11 percent. But $778 billion of new capital flowed in. Investors have a new motivation to allocate to private markets: exposure. More investors believe that private markets have become effectively required for diversified participation in global growth. Global private equity (PE) net asset value grew by 18 percent in 2018; this century, it has grown by 7.5 times, twice as fast as public-market capitalization. Private markets, including PE, debt, infrastructure, real estate, and natural resources, have graduated from the fringes of the economy to the mainstream. >more


European PE 2013-2018 and Trend 2019

PwC

PRIVATE EQUITY TREND REPORT 2019: POWERING THROUGH UNCERTAINTY

2018 was another record year for the private equity industry. As the current "Private Equity Trend Report 2019" shows, financial investors, once viewed with scepticism, have established themselves as reliable partners for thousands of companies throughout Europe. In 2018 alone, they were involved in more than 2000 transactions. At the same time, the industry is sitting on record levels of uninvested funds worldwide and is therefore once again faced with the task of reinventing itself. >more


European PE Outlook 2019

Roland Berger Strategy Consultants

EUROPEAN PRIVATE EQUITY OUTLOOK 2019

Optimism in the private equity (PE) industry is significantly down on previous years. This is one of the findings of the new European Private Equity Outlook 2019, Roland Berger's annual survey of PE experts across Europe: In 2019, less than one third of those polled anticipate an increase in the number of M&A transactions with PE involvement. And for the first time in many years, almost half (48%) of PE professionals expect the number of transactions to fall this year. Geopolitical uncertainties and concerns about the economy are behind their pessimism. >more


Global PE Report Year 2018

Bain & Company

GLOBAL PRIVATE EQUITY REPORT 2019

In 2018, the global private equity industry recorded another year of solid performance, closing with the strongest five-year period in its history. The buyout value increased by 10 percent to USD 582 billion and divestitures remained stable. During the year, $714 billion was invested by investors in private equity funds, bringing the total since 2014 to $3.7 trillion. >more


PE 2018/2019

Debevoise & Plimpton

2018/2019 PRIVATE EQUITY YEAR END REVIEW AND OUTLOOK

Private equity made another strong showing in 2018, limited only by the fierce competition for deals. To find opportunities while maintaining discipline, funds have gotten creative—through roll-up and add-on strategies, in the financing arrangements they offer acquisition targets, and in increased interest in new markets, such as impact investing. >more


Global Investment 2018 Survey

Invest Europe

2018 GLOBAL INVESTMENT DECISION MAKERS SURVEY

Europe’s attractiveness as an investment destination is on the rise compared to 2017, as the majority of global investors are more likely to invest in both the EU and the UK after Brexit, according to new survey findings. Nearly 90% of investors said Europe has become a more attractive investment destination over the last five years, according to Invest Europe’s Global Investment Decision Makers Survey 2018. >more


Global Venture Capital Q4 2018

KPMG

VENTURE PULSE Q4 2018

KPMG Enterprise’s Global Network for Innovative Startups launched the Q4’18 edition of the Venture Pulse Report. The report analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. This edition of the quarterly series provides in-depth analysis on venture capital investments across North America, EMA and ASPAC and will cover a range of issues such as financing and deal sizes, unicorns, industry highlights and corporate investment. >more


Start-ups January 2019

Ernst & Young

START-UP-BAROMETER DEUTSCHLAND: JANUAR 2019

German start-ups received more money in 2018 than ever before: a total of just under 4.6 billion euros was invested in German start-up companies last year - 7 percent more than in the previous year. The number of investments also reached a new high (615 compared with 507 transactions in the previous year). >more


Alternative Assets

PwC

REDISCOVERING ALTERNATIVE ASSETS IN CHANGING TIMES

Historically low interest rates and the enduring effect of quantitative easing are making markets expensive, so investors continue to turn to alternative asset classes where alpha looks better. But surplus capital and other factors have forced valuations up and prospective returns down. Changes in how we work and live, prompted by new technology, innovative business models, and geopolitical shifts, could render many real assets obsolete while creating opportunities elsewhere. We also see new entrants disrupting the sector, capturing value and market share.  In this report, PwC examines the fundamentals behind this transformation and the changes across several asset classes. >more


PE H2 2018

Ernst & Young

PRIVATE EQUITY: DER TRANSAKTIONSMARKT IN DEUTSCHLAND H2 2018

The German private equity market cooled down noticeably in 2018, but remains at a high level. After 227 deals in 2017, financial investors only made 216 in the current year. And the deal volume also fell from 19.4 billion euros to 17.9 billion euros. However, the previous year was exceptionally strong: it marked the highest number of deals and the second-highest transaction value since the financial crisis. >more


Global PE Winter 2018-19

Coller Capital

GLOBAL PRIVATE EQUITY BAROMETER: WINTER 2018-19

Three-quarters of the world’s private equity investors (Limited Partners or LPs) believe that international trade disputes will harm investment returns from private equity if they continue, according to Coller Capital’s latest Global Private Equity Barometer. As for Brexit, approaching half of the world’s LPs think there will be no new opportunities for private equity in Britain’s departure from the EU. A similar proportion think the opportunity will be limited to acquiring British assets on the cheap. Only 17% of Limited Partners see opportunities from a less demanding regulatory environment, and just 13% think private equity could benefit from better export opportunities for British companies. >more