Are co-investments the next area of growth for secondary market? ; Bregal Fund II raises $650 mln; Martis Capital Fund III closes on $545 mln
We have some end of Q1 data, which shows that private equity deal activity fell below any quarter in 2018. GPs closed on 993 deals totaling $121.4 billion, a drop of 26.7 percent in value, PitchBook said. Add-ons and take privates dominated investment activity, the report said. Add-ons accounted for a 71 percent of Q1 deals, PitchBook said. Exits slowed in Q1 with GPs selling out of 164 companies for a total value of $41.1 billion, the data company said.
Joseph Weitemeyer has a private equity slideshow with key stats in the industry including fundraising, deals and exits for Q1. See the slideshow here.
Hot market: GP-led secondary fund restructurings have gotten really popular. To help firms navigate this sector, ILPA has issued guidance, which it says is meant to offer specific parameters for an “efficient and transparent process” and to encourage productive dialogue. ILPA’s recommendations address issues like adequate disclosure of information, allocation of fees and expenses and the role of third party advisers. I wonder if that last one means bankers.
On that note, Chris has an interview with Gerald Cooper, a partner with secondary adviser and placement agency Campbell Lutyens, who talks about how the next area of growth in secondaries could be the sale of bundles of co-investments. Read the story here.
Funds: We have some fund closings this morning. Bregal Partners’ second pool closed on $650 million. See our brief here.
New Mountain Capital’s first net lease real estate fund collected $533 million.
Martis Capital, which invests in growth-oriented healthcare companies in the middle market, closed its third fund on its $545 million hard cap. Read Sarah Pringle’s story here.
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