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PE HUB Wire Highlights, 12.7.18

TowerBrook to buy Orchid Underwriters from Gryphon, NYC pension system names private equity chief

Happy Friday!

How was the week? It’s great hearing from you all that, even as we move through December, the action has not slowed, whether in fundraising or dealmaking. Most folks believe activity will stay strong until a few days before the holiday break.

But … I wonder if the recent market volatility and supposed signs of an impending slow down will ripple into the private markets. It would be weird to see PE fundraising hit a lull considering it’s become routine to consider fundraising strong.

Charts: You like data? We got data! Check out my recent cover story for Buyouts about anticipated funds coming to market in 2019. The story includes two charts: anticipated funds coming back to market in 2019, and, perhaps even better, most anticipated first-time funds in market. These charts are culled from our discussions with LPs as well as our own internal research. I’m sure they’re incomplete so if you have some further ideas for emerged or emerging managers coming to market soon, reach me atcwitkowsky@buyoutsinsider.com.

Slow: I spoke to a middle market buyout executive recently who said, for the first time in the past few years, they are seriously considering the marco-environment in their calculations of new dealmaking. Not that they never considered it, but a next-level macro slump has not really been part of the consideration. That appears to be changing.

What’s interesting is that even if we move into 2019 in a worsening environment, PE has so much money “sitting on the sidelines,” that dealmaking likely won’t taper off for a while. And firms with fresh capital should be able to take advantage of falling valuations.

Have you changed anything about dealmaking because of the recent market volatility? Hit me up at cwitkowsky@buyoutsinsider.com.

New boss: New York City pension system named David Enriquez head of private equity. Enriquez had worked in the position on an interim basis along with another employee, so the system has now made it official. Enriquez formerly worked as an investment banker at Rothschild, Merrill Lynch and Bear Stearns before joining the city system in 2016.

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