PE HUB Wire Highlights, 8.23.19


private equity, mergers, M&A
Private Equity Editor Chris Witkowsky reflects at home. Photo by Wendy Witkowsky

Emerging manager fundraising picks up steam, What are you reading this summer?

Happy Friday!

It’s been good spending the week with you. Luisa will be back on the Wire Monday and I’ll be on a lake in the Adirondacks hopefully fishing.

Not a lot for you this morning. As always, hit me up with tips n’ stuff at cwitkowsky@buyoutsinsider.com.

Emerging: New and mostly new private equity managers raised about $39.5 billion year-to-date as of early August, according to Buyouts research. Five emerging managers raised just over $1 billion from July 31 to Aug. 13, data czar Joe Weitemeyer reports.

New managers included Chicago Pacific Founders, which raised more than $399.6 million for its second fund. LCN Capital Partners raised more than $321 million through two funds in the market focused on North America and Europe. And Regal Healthcare Capital closed its second fund on $165.9 million, beating its $125 million target.

Some 395 first-time funds raised a combined $42.5 billion worldwide last year, down from 553 first-timers that raised $74.6 billion in 2017, according to Preqin in July.

“The vast majority of dollars are going to larger established managers,” said Mina Pacheco Nazemi, who listens to pitches from new managers as a managing director at Barings. Pacheco talked to me for my annual first-time funds feature that ran in July. “There’s so many managers out there … the competition is steep,” she said. “We’re finding first-time funds taking longer to raise funds, and it’s because LPs are taking their time making decisions on which emerging manager they’re going to back.”

Don’t forget to check out our emerging manager news archive, browsing through which gives a good illustration of interesting developments in this side of the market through the year (and prior years).

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