PE HUB Wire Highlights, 12.18.18

Credit Suisse Americas secondary chief to leave bank; Vista Equity is most active software buyer; CalPERS sets aside another $500 mln for emerging managers

We have only a couple weeks left in 2018. So it’s time for predictions.

PitchBook anticipates that buyers of GP minority stakes will continue to innovate in 2019, with investors looking to develop new ways to tap into smaller targets and promising new managers, according to the Private Equity Outlook Report. PitchBook is also predicting an exit, likely an IPO of a portfolio of GPs stakes, as pioneering investors seek liquidity options for early LPs.

PitchBook expects someone will take the AMG route, which calls for taking and listing a holding company composed of initial assets of minority GP interests. This one I’m not too sure about, Hubsters. I agree with the innovation aspect but the timing of an IPO seems a little too soon, especially considering all the volatility right now.

Secondaries activity will also likely hit an all-time high next year, the data provider said. I also agree that there’s lots of activity in this sector (just look at Chris W’s reporting) and the transactions have gained much acceptance. Secondaries funds distributed more than $10 billion back to investors in Q1 2018, PitchBook said.

Hubsters, what are your predictions for 2019? Will Steve Schwarzman ever retire? Email your thoughts to me

Now that we’ve mentioned secondaries, Chris has a story today about
Chris Areson, head of the Americas secondary advisory strategy at Credit Suisse. Areson is leaving the bank, Chris says. Anyone know what are Areson’s plans? Read Chris’s story here.

Funds: Ridgemont Equity Partners has closed its latest flagship on $1.65 billion in commitments, beating its target of $1.25 billion for Fund III. Read our brief here.

I have a story on Equus Capital Partners, a real estate investment firm, which expects to complete marketing for its 11th fund by mid-2019. Find out how much is seeking here.


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