By John Brennan and Jason Babcoke, Sumeru Equity Partners In Silicon Valley, nothing is sexier than a hot sector, and one of the hottest is business software. Contrary to headline-stealing, consumer-facing brands, much of the durable performance “heat” is coming from midsized growth companies that are rapidly innovating and disrupting established business processes with newer, better […]
Now that we’ve arrived at the end of the year, I want to take a moment to look back at some of the interesting themes we tracked here at Buyouts. Many of these will spill over into next year but some may be unique to this time and place. Three important issues come to mind. […]
By Kapila Ratnam, NewSpring Capital In an era where women run some of the world’s most successful companies, the numbers in some industries just don’t add up – private equity prominent among them. We’ve likely all seen the Preqin research that women make up less than 18 percent of the PE industry, with only 9 […]
Two thirds of institutional investors responding to a recent survey picked the “level of general partner financial commitment to the fund” as the partnership term they focus on most when deciding whether to invest in a fund or to advise a client to do so. Investors like to see a healthy GP commitment because it so neatly […]
By Gary Moran, Accordion, and Joseph St. Denis, Baseline Insights ASC 606 is the most important thing you’ve never heard of. Hyperbole? Perhaps. In fairness, you’ve probably heard of the new revenue-recognition standard, if not its uninspired acronym. But what you know of the new standard probably can be boiled down to three points: It’s […]
The private equity market in Europe remains at least as buoyant as in Canada and the United States and, despite political and market uncertainty, PE M&A activity remains high, Osler, Hoskin & Harcourt LLP Partner Mary Abbott writes. However, the realities of sourcing and executing on deals remains a challenge, as it does globally. Despite this shared reality, deal-making in Europe has some features or norms not common in North America that prudent businesses (and investors) can leverage to their advantage. Some of them arguably make deal execution more predictable and completion more certain.
Don’t call them first-time funds. I found that out the hard way over the past few months, in talking to countless GPs starting their own shops. These folks aren’t first-timers; most of them have been in the industry for years. It’s just that now they are cutting out on their own, raising money under their own […]
Earlier this year, I opined that CalPERS’s tough stance on fees would limit its selection of quality GPs. The theory goes like this: The best GPs in the business don’t need to concede on terms and conditions; they can dictate terms. Lesser GPs need to offer a buffet of sweeteners to persuade LPs to come […]
Many buyouts and growth equity firms added staff this year, taking advantage of a buoyant fundraising market to bulk up their operations, fundraising and credit teams. The overall pace of industry hiring seems “modestly robust,” said Heather Hammond, managing director-financial services at executive recruiter Russell Reynolds Associates, as firms add mainly to their junior ranks. According to […]
By Joanne Baginski, EKS&H When a private equity buyer acquires a company, a key concern is ensuring that the management team, with all the knowledge and experience, sticks around to grow it. That factor alone can be the difference between a great investment and a lackluster return. So it is critically important to create incentive […]