Predictions for 2020

Happy Monday!

If you’re working today, hope you have stuff to do. Seems fairly quiet out there! We’ll publish the Wire today and tomorrow, and then we’re off for the holidays.

Institutional Limited Partners Association, for the third year, put together predictions for the coming year from industry folks. Here’s a flavor:

In 2019, influential voices have seriously questioned private equity’s license to operate. In 2020, we must respond as an industry – explain our very real contribution to economies and to society,” said Jeremy Coller, CIO and chairman of Coller Capital.

“With firms’ fast return to the market and [less] capital for new commitments, momentum will be increasingly important in fundraising. Team, track record and strategy will be critical for emerging managers,” said Sarah Sandstrom, partner at Campbell Lutyens.

“20/20 vision? With debt now at four levels (trade finance, acquisition finance, fund finance and GPCo finance), this will be year that LPs realise PE is now a structured product,” said Eamon Devlin, partner at MJ Hudson.

“2020 will be the year of preparation. Even the best investors can’t predict the downturn but instead will prepare for the inevitable by rebalancing overweight portfolios through secondary sales in today’s attractive high price environment,” said Julien Gervaz, CEO of Palico.

Check out the full list here.

For what it’s worth, when I ask about the landscape for 2020, I generally get the sentiment that fundraising will continue to be strong. In fact, forward calendars continue to show established GPs coming back to market with new product-type funds, as well as newer shops launching second and third funds.

And as capital-raising continues to roll, dry powder will be building up because GPs will still be cautious with how they spend their money. Deal flow slowed this year compared to prior years, and I expect that will continue next year.

What are you expecting in 2020 in your slice of the market? Hit me up at cwitkowsky@buyoutsinsider.com.

New role: James Maloney, the former spokesman of American Investment Council, the PE industry lobbying group, formed a public affairs consultancy for the financial services, tech and healthcare sectors called Tiger Hill Partners. Maloney launch the firm, which has been operating since November, alongside Milan Dalal, an attorney and policy consultant.

Tiger Hill provides communications, government relations, research and policy and political risk due diligence services. Check it out here.

Top Scoops

Bertram Capital, a growth firm, is raising its fourth lower middle market fund less than two years after the final close of Fund III on $500 million. Read it here.

Ex-TPG big Bill McGlashan wants prosecutors to give up information that may help prove he is innocent of charges related to a nationwide college admissions scandal, I wrote on Buyouts. The government has been stonewalling his info requests, according to a recent court filing. Check it out.

That’s it! Have a great rest of your day. Hit me up as always with tips n’ gossip, feedback or just to chat at cwitkowsky@buyoutsinsider.com, on Twitter or find me on LinkedIn.