Private Equity Overview
|
|
- Shanon Sutton
- 5 years ago
- Views:
Transcription
1 Private Equity Overview June 10, 2010 State Universities Retirement System Rob Parkinson, Associate
2 Agenda Asset Class Overview Market Update SURS Private Equity Portfolio
3 Asset Class Overview
4 Benefits of Private Equity Investing in private equity offers an investor the opportunity to generate higher absolute returns while improving portfolio diversification Investment Horizon: Through long-term investing in Private Equity, investors can take advantage of market cycles and are less subject to the pressures associated with investments in public securities Impact of superior returns: Investors with only a small allocation to Private Equity can considerably impact the overall returns of their portfolio Access: Institutional investors have access to a portion of the investable universe usually not available to the everyday investor
5 Asset Class Size Total Investable Capital Market December 31, 2009 $104.6 Trillion All Other Stocks 18.6% Cash Equivalents 4.0% Emerging Market Debt 3.4% Emerging Market Stocks 2.6% U.S. Stocks 14.8% Private Capital 1.0% U.S. Real Estate 4.7% U.S. Bonds 27.1% Non-U.S. Bonds 22.7% High Yield Bonds 1.2% Source: UBS Global Asset Management, Venture Economics, EnnisKnupp
6 Private Equity Strategies Venture Capital Seed An entrepreneur has a new idea or product, but no established organization or structure. Investors tend to provide a few hundred thousand dollars and perhaps some office space to an entrepreneur who needs to develop a business plan. Early Stage The organization has been formed and has employees and products are in the developmental stage. Early-stage investors back companies when they have a completed business plan, at least part of a management team in place, and perhaps a working prototype. Later Stage An established infrastructure is in place and the company has a viable product that is market-ready and generating revenues. Later-stage investors typically provide financing for expansion of a company that is producing, shipping, and increasing its sales volume.
7 Private Equity Strategies Buyouts (AKA: Corporate Finance) A fund investment strategy involving the acquisition of a product or business, from either a public or private company, typically utilizing both debt and equity. Mezzanine Financing A fund investment strategy involving subordinated debt (the level of financing senior to equity and below senior debt). Distressed Strategy A fund investment strategy involving investment in equity or debt of companies that are unable to service existing debt, often including companies in, or preparing to enter bankruptcy.
8 Private Equity Risk/Return Spectrum Rate of Return (%) Mega Buyout Large Buyout Mezzanine Medium Buyout Small Buyout Distressed Debt/ Turnaround Late Stage Venture Capital Early Venture Capital Seed Venture Capital 0-10 Lower Risk Higher Source: Thomson Venture Economics
9 Risks of Private Equity Investing Liquidity Vintage Year Geographic Portfolio Risks Sector Industry Investment Type
10 How to Mitigate Risk in PE Portfolios Concentration Risk: Limit no more than 15% of allocation to one firm and no more than 10% to any one fund. Geographic Risk: Allocate 25% or more, not to exceed 35% of entire portfolio to non-u.s. investments. Sector Risk: Allocate no more than 50% of the portfolio to any one sub sector. Industry Risk: No more than 15% in any one industry. Skill: Hiring a fund or adviser to select top performing funds Benchmarking: Peer benchmark of Venture Economics or Preqin are good indicators of relative performance. Time & Reporting: Back office and investment management services can typically be outsourced at a relatively low cost to the investor.
11 15 Year Returns As of 6/30/ % 20% 19.3% 16.3% 15% 13.8% 10% 9.4% 6.9% 6.6% 6.5% 5% 3.5% 3.3% 2.5% 0% Non-U.S. Buyouts (Venture Econ.) U.S. Venture Capital (Venture Econ.) U.S. Buyouts (Venture Econ.) Real Estate (NCREIF) Large Caps (S&P 500) Bonds (Barclays Capital AGG) Small Caps (Russell 2000) Int'l Equities (EAFE) Treasury Bills Inflation Source: Thomson Venture Economics, Bloomberg
12 Typical Institutional Allocations to Private Equity 12% 11.5% 10% 10.2% % of Total Fund Assets 8% 6% 4% 5.3% 4.4% 4.4% 3.7% 2.8% 4.4% 6.6% 7.8% 8.4% 8.4% 2% 0% Corporate Defined Benefit Plans Public Defined Benefit Plans Endowments & Foundations Source: Greenwich Associates 2009 Survey
13 Characteristics of Successful Investors We believe six elements are essential in determining private equity allocation: - Access and skill - Risk tolerance - Internal resources for supervision - Board support - Liquidity requirement - Asset size
14 Market Update
15 Private Equity Market Overview Global 1Q10 Fundraising (by Sector) $13.0 $ $3.8 $2.0 3 $3.1 Buy out Distressed Fund of Funds Secondaries Venture General Partners Fundraising. US private equity firms raised $50.4 billion in the first quarter of This is down 68% from the $76.0 billion raised during the same period in Portfolio Performance. General Partners continue to emphasize margin improvement and operating efficiency over revenue expansion in their portfolio companies. Many General Partners are starting to experience an increase in quality of deal flow. Liquidity. Global M&A activity was up 43% from the previous quarter. In addition, IPO markets have become more receptive to new offerings as over a dozen private equity backed companies went public in the first quarter of No. of Funds Aggregate Capital Raised ($B) Source: Preqin Capital Raised (USD $Bil) Global 1Q10 Fundraising (by Geography) $20.0 $18.0 $0.9 $16.0 $14.0 $5.3 $0.3 $0.7 $12.0 $2.7 $10.0 $2.4 $8.0 $1.2 $1.0 $3.3 $7.0 $2.2 $6.0 $4.0 $2.8 $2.0 $4.8 $3.1 $3.1 $0.0 North America Europe Asia/ ROW Note: Fundraising only includes funds that held a final close Fund of Funds Other Secondaries Distressed Buyout Venture Capital Limited Partners New Commitments. Many Limited Partners are more selective with new fund commitments. As a result, many fundraising efforts have been put on hold or delayed significantly. Fundraising. Currently, there are 736 North American-focused funds targeting $332.3 billion in commitments, while $152.1 billion is being sought by 388 European-focused funds. Valuations. NAVs have begun to rebound as public market comparable valuations have increased from year-ago levels. Sources: Thomson Reuters, Preqin
16 Buyouts/ Corporate Finance Value ($mil) Buyout M&A Deal Volume and Value $350,000 1,600 $300,000 1,400 $250,000 1,200 1,000 $200, $150, $100, $50, $0 0 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 Number of Deals Current Environment Slower Deal Pace. LBO deal volume picked up in Q with sponsors closing 147 deals, a 22% increase over the prior quarter. Difficult Operating Environment. Though portfolio companies continue to view the current environment as difficult, there have been fewer defaults among sponsor-backed companies. Exit/liquidity. Exit options are starting to emerge as strategics focus on acquisitions and markets become more receptive to IPOs. There were 65 exits, totaling $13.0 billion, from buyout funds in Q % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6% 11% 16% 17% 50% Value Sources: Preqin Number of Deals Number and Aggregate Value of Buyout Deals by Value (Q1 2010) Number of Deals 29% 33% 23% 10% 6% Aggregate Deal Value $1b or More $ m $ m $ m Less than $100m Fundraising. Buyout funds raised $13.0 billion in the first quarter of Limited Partner Considerations Leverage. Announced deals are utilizing more leverage than deals in the past 18 months. Banks have started to lend to larger more conservative transactions. Focus on Strategy. Operational value-add is required for managers to be successful. Financial engineering is more difficult in the current environment. Attractive Sectors. Lower and middle-market deals, growth equity, and de novo strategies utilizing little-to-no debt are appealing opportunities in this market environment. Sources: Thomson Reuters, Preqin
17 Venture Capital $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Venture Capital Deal Volume ($MM) $8,022 $5,836 $6,334 $5,846 $5,753 $7,791 $7,071 $5,493 $6,580 $4,939 $5,841 $5,177 $4,737 $7,077 $7,377 $7,359 $5,100 $6,121 $6,293 $4,837 $4,142 $4,211 $5,212 $5,036 $6,343 $7,450 $7,745 $3,364 $4, Quarter 1 Quarter 2 Quarter 3 Quarter 4 Venture Capital Industry Focus Bus. Service Consumer 2% 3% Telecom Financial 3% Services 5% Current Environment Investment Pace. Venture capitalists invested $4.7 billion in the first quarter of 2010 down 6% from the previous quarter. Investment was up versus the first quarter of Exit Environment. 9 VC-backed IPOs in 1Q 2010 vs.12 VC-backed IPOs in all of Represents best quarterly total for venture-backed IPOs since 4Q Fundraising has slowed. US venture capital firms raised $3.6 billion in the first quarter of 2010 from 32 funds. This level marks a 31% decline, by dollar commitments, compared to the first quarter of 2009 and 44% decline by number of funds. Industry Focus. Healthcare and technology continue to attract the bulk of venture capital investment. Limited Partner Considerations Valuations. Entrepreneurs valuation expectations and venture capital buyer expectations have seemingly converged, which may increase deal activity. Technology 33% Healthcare 29% Investment Strategies. Funds that invest in capital-efficient businesses are better able to weather the crisis as these companies require less capital and spend it more slowly. Industrial/ Energy Media and 14% Entertainment 7% Slower Deployment of Capital. In preparation for potentially longer holding periods, funds maintain additional capital reserves for portfolio companies. Sources: Thomson Reuters, National Venture Capital Association
18 Distressed High-Yield Issuance ($ in billions) Basis Points Jan-94 Jan-95 Jan-96 High-Yield Loan Volume vs. Default Rates YTD Jan-97 High-Yield Issuance ($ in billions) Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 BB B CCC Jan-04 Jan-05 Default Rates U.S. High Yield Corporate Bonds by Quality Jan-06 Jan-07 Jan Current Environment Timing the Market Opportunity. Covenant-lite terms have delayed triggering events until financial default occurs. Restructuring situations should start to emerge over the next 24 months as debt needs to be refinanced. Bankruptcies. There were just nine bankruptcies of buyout-backed companies in the first quarter of 2010 vs. 27 bankruptcies during the first quarter of Default Rate. The 1Q 2010 default rate was 0.134% on $1.6 billion of defaults, the smallest quarterly default rate since the third quarter of The trailing 12-month default rate decreased to 7.3%, down from 10.8% as of year end Limited Partner Considerations Cyclical Investment Strategies. Mezzanine and distressed debt opportunities become increasingly attractive during economic downturns and wide credit spread environments. Attractive Investment Opportunities. Refinancing needs for struggling companies provide opportunity for buyers to strengthen balance sheets. Credit Spreads: Distressed investors realized significant gains through debt positions that traded up in late The tightening of credit spreads have reduced the attractiveness on acquiring debt in struggling companies. 1 Dow Jones LBO Wire 2 New York University Salomon Center, First-Quarter 2010 Review Source: New York University Salomon Center Jan-09 14% 12% 10% 8% 6% 4% 2% 0% Jan-10 Default Rate
19 Mezzanine Debt Median Net IRR 25% 20% 15% 10% 5% 0% Mezzanine Performance and Credit Spreads Year Median Net IRR of Vintage Year US High-Yield Option-Adjusted Spreads Over Treasuries Spread over Treasuries (bps) Current Environment Refinancing Needs. About $1.1 trillion in leveraged loans and high yield bonds are expected to mature from While a portion will be lost or converted to equity in restructurings, refinancing needs have been estimated at $700.0 billion over this timeframe. Bank Capacity Constraints. Banks invested $1.5 trillion in leveraged loans between 2004 and Assuming leveraged loans comprise the historical average percentage of bank assets, banks will have only $300.0 billion to invest in leveraged loans over the next five years. Dry Powder. Buyout firms raised around $700.0 billion in equity capital between 2006 and 2008, while mezzanine firms raised less than $100.0 billion. If the average buyout includes $1 of mezzanine for every $2 of equity, the shortfall is meaningful. Maturities (USD$ Bil) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $17 $33 $44 $101 $66 $72 Loan Maturity Expectation $173 $94 $279 $45 $136 $136 $122 $109 $26 Bank Loans High Yield Bonds $1 $1 $ and beyond Limited Partner Considerations Fundamental Risk Compression. Mezzanine capital is most at risk when the enterprise value of a company declines below the company s total outstanding debt. With senior lenders providing less capital to new transactions, borrowers are less encumbered by higher priority debt than mezzanine thus decreasing the largest risk of mezzanine investments. Asymmetric Returns. Mezzanine investments are currently generating coupon payments between 15-17% with equity participation adding to the return. Total expected gross returns for 2009 mezzanine investments are approximately 20-23%. Sources: Morgan Stanley, Thomson Reuters / Venture Economics, Preqin Private Equity Intelligence, JP Morgan
20 Secondaries $ (in billions) 120% 100% 80% 60% 40% 20% 0% Source: Private Equity Analyst, Probitas Partners Transaction Volume (USD $B) Secondary Bid Spreads (Buyout LP Interests) Median High Median Low H '08 2H '08 1H '09 Q3 '09 Q4 '09 Current Environment Fundraising. During 1Q 2010, secondary funds collected $3.1 billion vs. the $3.8 billion collected in 1Q Pricing. The bid-ask spread between buyers and sellers was very wide in Pricing was the main driver behind the low number of closed transactions. Performance. Due to the rebound in the public markets over 2009 many secondary transactions received an immediate increase in value after closing due to mark to market valuations. Strong Deal Flow. In 2010, deal flow will likely be originated from financial institutions, particularly banks, versus the high net worth's and family offices activity in Limited Partner Considerations Valuations. With discounts narrowing, we would expect to see additional secondary activity in Diversification. Secondary funds remain a option for investors who are seeking additional vintage year and private equity subsector exposure. Strategy. Seasoned secondary strategies will exhibit additional transparency versus other secondary strategies. Source: Probitas Partners
21 Summary of Opportunities Overweight Neutral Underweight Small-Market Corporate Finance Middle-Market Large Mega Seed / Early Stage Venture Capital Growth/Expansion Late Stage Multi-Stage Mezzanine Distressed Debt Secondaries Special Situations Royalty Clean Technology Energy Infrastructure Sector Focused
22 SURS Private Equity Portfolio
23 Private Equity SURS Exposure As of 12/31/2009 Current Policy Allocation Average Public Fund Allocation to Private Equity 1 Current Portfolio Market Value Current Dollar Amount as a Percent of Total Fund Total Commitments Over the Life of the Program 2 Total Assets Drawn by the Investment Managers 3 6.0% 7.8% $1.1 billion 8.0% $2.3 billion $1.7 billion 1 Per Greenwich Associates 2009 Survey, Public Fund Dollar-Weighted Asset Mix 2 Total Commitments represents assets committed to private equity since Total Assets Drawn represents assets invested by the managers since 1990.
24 Performance as of 12/31/ Private Equity SURS Long Term Record Account Vintage Year Since Inception IRR Venture Economics Median IRR Venture Economics Top Quartile IRR Adams Street Sep Account % 10.3% 19.3% Adams Street Global Secondary % 0.8% 1.0% Adams Street Non-U.S % 1.0% 1.5% Muller and Monroe Illinois PE FoF % 1.9% 11.5% Pantheon Ventures Separate Account % 1.4% 12.1% Pantheon Europe III FoF % 1.0% 1.5% Pantheon Global Second II FoF % 0.9% 1.0% Progress % 10.0% 32.2% 1 Performance is on a quarter lag. Performance for ASP 2009, ASP 2008, ASP 2007 Global Opportunities, Pantheon Europe VI, Pantheon USA 8, and Muller & Monroe MPEFF is not yet meaningful.
25 SURS Experience The nature of private equity dictates that assets be committed several years before they are actually invested. It is rare that 100% of assets committed are actually invested at any given point of time. Therefore, over-commitment is required to reach and maintain the policy target. Commitments have been made over several years instead of in a single year to allow vintage year diversification. SURS performance history has been favorable.
Part 3: Private Equity Strategies
Private Equity Education Series Part 3: Private Equity Strategies Reports in this series Report Highlights Page Part 1: What is Private Equity (PE)? Part 2: Investing in Private Equity Part 3: Private
More informationPerspectives JAN Market Preview: Private Equity
Perspectives JAN 2019 2019 Market Preview: Private Equity POISED FOR ROBUST DEPLOYMENT Private equity investors in 2018 benefited from strong overall industry performance, with U.S. funds up 8.3% YTD.
More informationPrivate Equity. Panel Detail: Monday, May 2, :30 AM - 10:45 AM
Private Equity Panel Detail: Monday, May 2, 211 9:3 AM - 1:45 AM Speakers: Leon Black, Founding Partner, Apollo Management, LP David Bonderman, Founding Partner, TPG Capital Jonathan Nelson, CEO and Founder,
More informationQuarterly Asset Class Report Private Equity
Quarterly Asset Class Report canterburyconsulting.com Canterbury Consulting ( CCI ) is an SEC registered Investment Adviser. Information pertaining to CCI's advisory operations, services, and fees is set
More informationQuarterly Asset Class Report Private Equity
Quarterly Asset Class Report canterburyconsulting.com Canterbury Consulting ( CCI ) is an SEC registered Investment Adviser. Information pertaining to CCI's advisory operations, services, and fees is set
More informationTHE U.S. MIDDLE MARKET
THE U.S. MIDDLE MARKET An alternative source of income, growth and diversification ALTERNATIVE THINKING FS Investment Solutions, LLC (member FINRA/SIPC) is an affiliated broker-dealer that serves as the
More informationLEVERAGED LOAN MONTHLY
LEVERAGED LOAN MONTHLY THOMSON REUTERS LPC AUGUST 2013 Colm Doherty Director of Analytics colm.doherty@thomsonreuters.com 646-223-6821 Hugo Pereira Senior Market Analyst hugo.pereira@thomsonreuters.com
More informationPerspectives JAN Market Preview: Private Equity
Perspectives JAN 2018 2018 Market Preview: Private Equity RELATIVE OPPORTUNITY FUELING GROWTH Private equity investors in 2017 benefited from strong overall industry performance, with U.S. funds up 12%
More informationAlternative Investments in a Changing World
NORTHERN TRUST 2010 PROGRAM SOLUTIONS CONFERENCE Investment Solutions in an Uncertain World: WHAT S NEXT? Alternative Investments in a Changing World Andrew C Smith, CFA, Chief Investment Officer, NTGA
More informationPrivate Equity (PE) Annual Program Review
Item 6a - Attachment 1, Page 1 of 27 Private Equity (PE) Annual Program Review Sarah Corr Interim Managing Investment Director Mahboob Hossain Investment Director November 13, 2017 1 Program Performance
More informationEx US Private Equity & Venture Capital Index and Selected Benchmark Statistics. June 30, 2017
Ex US Private Equity & Venture Capital Index and Selected Benchmark Statistics Disclaimer Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge
More informationUniversity of Illinois. Fourth Quarter 2016 Investment Update Board Report. March University of Illinois
University of Illinois March 15, 2017 Fourth Quarter 2016 Investment Update Board Report March 2017 University of Illinois 1 (This page left blank intentionally) University of Illinois 2 Table of Contents
More informationEx US Private Equity & Venture Capital Index and Selected Benchmark Statistics. September 30, 2017
Ex US Private Equity & Venture Capital Index and Selected Benchmark Statistics Disclaimer Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge
More informationI-4 UC Private Equity Program Review
I-4 UC Private Equity Program Review Committee on Investments / Investment Advisory Group February 22, 2011 Presentation Outline Industry Update Strategy Overview Portfolio Review Performance UC Private
More informationMaterials for Discussion May 26, 2011 Eliot Kerlin, Bud Moore
Private Equity: Current Environment, Trends and Expectations Private Equity: Current Environment, Trends and Expectations Materials for Discussion May 26, 2011 Eliot Kerlin, Bud Moore AGENDA I. Current
More informationMorgan Stanley Financial Services Conference
Morgan Stanley Financial Services Conference Glenn Youngkin, Managing Director and Chief Operating Officer June 2012 Important Information This presentation has been prepared by The Carlyle Group L.P.
More informationASSET ALLOCATION REPORT
2018 ASSET ALLOCATION REPORT INTRODUCTION We invite you to review Omnia Family Wealth s 2018 report on expected asset class returns for the next 10 years. While we believe these forecasts reflect a reasonable
More informationSecondary Market Update Q All securities transacted through Sixpoint Partners, member FINRA/SIPC
Secondary Market Update Q3 2014 All securities transacted through Sixpoint Partners, member FINRA/SIPC Secondary Market Environment 2 Executive Summary 2014 is shaping up to be a banner year for the private
More informationAlbourne Update Private Equity SDCERA Board of Retirement. February 20 th 2014
Albourne Update Private Equity SDCERA Board of Retirement February 20 th 2014 Agenda 1) Program History 2) Current allocation vs. targets 3) Portfolio composition 4) Performance 5) Future Pacing 6) Market
More informationSEPTEMBER 2017 Private Equity Outlook
SEPTEMBER 2017 Table of contents VERU.S.INVESTMENTS.COM SEATTLE 206 622 3700 LOS ANGELES 310 297 1777 SAN FRANCISCO 415 362 3484 Executive summary 3 Market update: Other 19 Fund finance: Subscription credit
More informationUS Venture Capital Index and Selected Benchmark Statistics. September 30, 2016
US Venture Capital Index and Selected Benchmark Statistics Note on Company Analysis Update Starting this quarter, we are including company IRRs both by CA industry classifications and Global Industry Classification
More information2011 Pan-European Private Equity Performance Benchmarks Study. June, 2012
2011 Pan-European Private Equity Performance Benchmarks Study June, 2012 About Thomson Reuters and EVCA About Thomson Reuters Thomson Reuters is the world's leading source of intelligent information for
More informationPrivate Equity Trends
Third Quarter 2018 INSTITUTE Private Equity Trends Analyzing private equity activity through all the stages of the investment cycle, from fundraising to exits. Fundraising: Mild Slowdown Driven by Fewer
More informationPrivate Equity Fund of Funds Process and Review
Private Equity Fund of Funds Process and Review March 2012 Andrew Junkin, CFA, CAIA Managing Director Tom Toth, CFA Managing Director Introduction Key Terms Capital (VC) Illiquid investments in high potential,
More informationGlobal Buyout & Growth Equity Index and Selected Benchmark Statistics. September 30, 2015
Global Buyout & Growth Equity Index and Selected Benchmark Statistics Note on Methodology Changes: Beginning this quarter, we have updated our approach for the calculation and display of select data points
More informationEUROPEAN LEVERAGED LOAN MARKET IMPACT OF THE CREDIT CRISIS
AVOCA CAPITAL LEVERAGED LOANS EUROPEAN LEVERAGED LOAN MARKET IMPACT OF THE CREDIT CRISIS OUTLOOK 1 AVOCA CAPITAL INTRODUCTION Avoca is a large and long established European leveraged loan manager Top 5
More informationMadison Capital Funding Market Overview
Communicate. Commit. Deliver. Third Quarter 2014 Table of Contents Loan Volume 2 CLO Issuance, Investors 3 Madison Capital Funding Market Overview Yields, Debt and Equity Multiples 4 Madison Capital Overview
More informationAn Overview of Private Equity Investing
An Overview of Private Equity Investing White Paper October 2017 Not For financial FDIC Insured professional May Lose and Value accredited No Bank investor Guarantee use only. For Not financial FDIC Insured
More informationThe Northern Trust Experience
The Northern Trust Experience ACCESS. EXPERTISE. SERVICE. Are Alternatives Still Alternative? November 4, 2010 Robert P. Morgan SVP, Director of Private Equity 2010 Northern Trust Corporation northerntrust.com
More informationPrivate Debt: The opportunity for income and diversification with illiquid assets
Winter 2018 Private Debt: The opportunity for income and diversification with illiquid assets Heather Davis President and CIO Nuveen Private Markets Brian Roelke Head of Private Capital Jason Strife Head
More informationPlus ça Change, plus c est la Meme Chose
Plus ça Change, plus c est la Meme Chose Private Equity s Evolving Role in the Economy and in Investor Portfolios July 2010 Cash Flows for Investors Valuations Net Returns for Investors Short Term, Long
More informationAMERICAN INVESTMENT COUNCIL. Performance Update 2017 Q1
AMERICAN INVESTMENT COUNCIL Performance Update 2017 Q1 Private Equity Performance Benchmarks (as of March 31, 2017) Private Equity Benchmark Returns (Horizon IRR) 1 1-Year 3-Year 5-Year 10-Year BISON Private
More informationIntroduction to Private Equity
Introduction to Private Equity www.pantheonprivatewealth.com October 2014 1 Private equity defined Market overview Types of private equity Value creation Structure guide Accessing private equity Evaluating
More informationComprehensive Annual Review Process
Agenda I. Private Equity Program: A Year in Review II. PE Performance, Portfolio, and Compliance III. Private Equity Market Review IV. Forward Looking Plans V. Conclusions 2 Section I 3 Comprehensive Annual
More informationPresentation Global private equity trends
Presentation Global private equity trends Alex Scott Partner Pantheon Ventures Global Private Equity Trends Alex Scott July 2018 Hitting the headlines IPOS ARE DWINDLING, SO IS THE NUMBER OF PUBLIC COMPANIES
More informationCraig D. Frances, M.D McGuire Woods Annual Conference October 10, 2009
The Financial World s View of ASCs Craig D. Frances, M.D. 2009 McGuire Woods Annual Conference October 10, 2009 Agenda What is private equity and its utility? Why consider a private equity partner? What
More informationPrivate Equity. How to unlock the potential of private companies? David Maréchal Private Equity Investment Manager. 18 September 2014 München
Private Equity How to unlock the potential of private companies? David Maréchal Private Equity Investment Manager 18 September 2014 München Table of contents 1 Private Equity An overview 3 2 Why invest
More informationTEACHERS RETIREMENT BOARD. INVESTMENT COMMITTEE Item Number: 14 CONSENT: ATTACHMENT(S): 1. DATE OF MEETING: February 3, 2016 / 20 mins.
TEACHERS RETIREMENT BOARD INVESTMENT COMMITTEE Item Number: 14 SUBJECT: Review of Private Equity Portfolio Open Session CONSENT: ATTACHMENT(S): 1 ACTION: INFORMATION: X DATE OF MEETING: / 20 mins. PRESENTER(S):
More informationTo: Investment Committee From: Douglas C. Wesley, CFA Date: May 28, 2010 Re: Pantheon Ventures Private Equity Annual Review
State Universities Retirement System of Illinois Serving Illinois Community Colleges and Universities 1901 Fox Drive Champaign, IL 61820-7333 (217) 378-8800 (217) 378-9802 (FAX) To: Investment Committee
More informationLong-term performance of private equity remains strong
PRESS RELEASE: PERFORMANCE DATA Long-term performance of private equity remains strong Sharp devaluations drag down short-term horizons EMBARGOED UNTIL 01.00 CET Friday 13 th Geneva, 12 March 2009 The
More informationAMERICAN INVESTMENT COUNCIL. Performance Update 2017 Q3
AMERICAN INVESTMENT COUNCIL Performance Update 2017 Q3 Private Equity Performance Benchmarks (as of September 30, 2017) Private Equity Benchmark Returns (Horizon IRR) 1 1-Year 3-Year 5-Year 10-Year BISON
More informationChicago Teachers Pension Fund
March 31, 2015 Chicago Teachers Pension Fund Private Equity Performance Report Callan Associates Inc. prepared the following report utilizing secondary data from statements provided by the plan trustee
More informationNot created equal: Surveying investments in non-investment grade
Winter 2018 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors searching for yield and current income opportunities have increased their allocations
More informationState of the Middle Market M&A Private Equity Financing
State of the Middle Market M&A Private Equity Financing Webcast: May 10, 2011 DEBT ADVISORY GROUP The Capital Markets Desk for the Middle Market State of the Middle Market Agenda Agenda Update on Market
More informationInvestment Opportunities in Private Markets
Investment Opportunities in Private Markets 2017 NCPERS Annual Conference and Exhibition May 22, 2017 For institutional investor use only. Not for use with or distribution to the public. The mighty middle
More informationSUBSCRIPTION FINANCING OVERVIEW
SUBSCRIPTION FINANCING OVERVIEW I. SUBSCRIPTION FINANCING - GENERAL OVERVIEW Structured to address interim financing needs of PE Funds Secured by unfunded Capital Commitments of Investors in a Fund Credit
More informationM&A, Private Equity and Capital Markets Update
M&A, Private Equity and Capital Markets Update April 211 DRAFT M&A Market Drivers DRAFT Macroeconomic Conditions Favorable For M&A GDP growth expected to continue The second half of 29 exhibited the first
More informationState Board of Administration of Florida. Major Mandate Review First Quarter 2013
State Board of Administration of Florida Major Mandate Review First Quarter 2013 (This page left blank intentionally) 2 Table of Contents 1. Executive Summary 2. Pension Plan Review 3. Investment Plan
More informationCALIFORNIA STATE TEACHERS RETIREMENT SYSTEM PRIVATE EQUITY INVESTMENT POLICY
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM PRIVATE EQUITY INVESTMENT POLICY INVESTMENT BRANCH NOVEMBER 2017 H. Private Equity Investment Policy EXECUTIVE SUMMARY In accordance with the CalSTRS Investment
More informationWHAT IS A SECONDARY TRANSACTION? DECEMBER 2018 PRIVATE MARKETS INSIGHTS PRIMER SECONDARIES: RISK REDUCTION WITH ATTRACTIVE RETURNS
PRIVATE MARKETS INSIGHTS PRIMER SECONDARIES: RISK REDUCTION WITH ATTRACTIVE RETURNS The private equity secondaries market has thrived in recent years as investors search for sources of potential outperformance,
More informationMOBILIZING PRIVATE EQUITY AND DEBT FUNDS FOR SME AND INFRASTRUCTURE FINANCE IN EMERGING MARKETS AND DEVELOPING COUNTRIES
Public Disclosure Authorized Public Disclosure Authorized 101684 MOBILIZING PRIVATE EQUITY AND DEBT FUNDS FOR SME AND INFRASTRUCTURE FINANCE IN EMERGING MARKETS AND DEVELOPING COUNTRIES Public Disclosure
More informationItem 6b - Attachment 1, Page 1 of 8
Item 6b - Attachment 1, Page 1 of 8 M E K E T A I N V E S T M E N T G R O U P BOSTON MA CHICAGO IL MIAMI FL PORTLAND OR SAN DIEGO CA LONDON UK Mr. Henry Jones Chairman of the Investment Committee California
More informationFinancing ESOP Transactions- Lenders Perspective
Financing ESOP Transactions- Lenders Perspective 2015 California/Western States Chapter Conference Denver, Colorado September 24, 2015 Kurt Mair SVP and Western Regional ESOP Director Wells Fargo & Co.
More informationPRIVATE EQUITY & PRIVATE CREDIT MARKET ENVIRONMENT 2017 RECAP/2018 OUTLOOK
PRIVATE EQUITY & PRIVATE CDIT MARKET ENVIRONMENT 2017 CAP/2018 OUTLOOK February 2018 2017 in Review: Larger Funds, Fewer Deals & More 2017 was a great year for PE fundraising, particularly for large funds.
More informationPREQIN PRIVATE CAPITAL PERFORMANCE DATA GUIDE
PREQIN PRIVATE CAPITAL PERFORMANCE DATA GUIDE INTRODUCTION Preqin was founded in 2003 and pioneered the use of the Freedom of Information Act (FOIA) to collect fund level returns data from public pension
More informationNational Private Equity Program Performance Update Q3 2016
National Private Equity Program Performance Update Q3 2016 Presented to The Council Investment Committee of The New Mexico State Investment Council January 25, 2017 DISCLAIMER The following presentation
More informationThis document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project.
This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp This page intentionally
More informationVolume Report FY 2017
Volume Report FY 2017 Setter Capital Volume Report 1 Highlights The Setter Capital Volume Report analyzes global secondary market activity in FY 2017 and covers the following topics: Total Volume of Secondary
More informationLeverage Lending, Dividend Recaps, and Solvency Opinions. Jeff K. Davis, CFA September 17, 2013
Leverage Lending, Dividend Recaps, and Solvency Opinions Jeff K. Davis, CFA September 17, 2013 1 The pricing of credit is forever cyclical. Jim Grant Grant s Interest Rate Observer 2 SECTION ONE Leveraged
More informationVolume Report H1 2017
Volume Report H1 2017 First in the Secondary Market. Setter Capital Volume Report 1 Highlights The Setter Capital Volume Report analyzes global secondary market activity in H1 2017 and covers the following
More informationMAY Deal Metrics Survey. A survey of Australian VC and PE deal activity from AVCAL Deal Metrics Survey May In association with
MAY 29 Deal Metrics Survey A survey of Australian VC and PE deal activity from 25 28 AVCAL Deal Metrics Survey May 29 In association with 1 Message from the Chief Executive When AVCAL first commissioned
More informationPrivate Equity Overview
Private Equity Overview Presentation to VACo/VML Pooled OPEB Trust Annual Meeting September 9, 2016 John Shearburn Managing Director Legal Considerations This presentation (this Presentation ) is being
More informationSTATE OF THE MARKET TODAY AND WHAT TO EXPECT TOMORROW
STATE OF THE MARKET TODAY AND WHAT TO EXPECT TOMORROW Thomson Reuters LPC s Second Annual Middle Market Loan Conference Ioana Barza Director of Analysis ioana.barza@thomsonreuters.com OVERVIEW From 40,000
More informationSecondary Market: Evolution and Recent Trends
Secondary Market: Evolution and Recent Trends Emmanuel Roubinowitz, Ponte Partners Internet Securities Event March 16, 2016 1 Secondary Overview Acquisition of shares in PE/VC funds or PE/VC backed companies
More informationEndowment Investment Review as of March 31, 2017
UNIVERSITY OF CALIFORNIA Office of the Chief Investment Officer Endowment Investment Review as of March 31, 2017 Growing Portfolios Building Partnerships UC Investments Table of Contents GEP Executive
More informationState Board of Administration of Florida
State Board of Administration of Florida Major Mandate Review Fourth Quarter 206 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Table of Contents.
More informationIn association with: Pan-European Survey of Performance. - From Inception to 31 December
RESEARCH NOTES In association with: Pan-European Survey of Performance - From Inception to 31 December 2004-27 October 2005 These research notes present the main findings of the 2005 Pan-European Investment
More informationPresentation to KCAP Investors
Presentation to KCAP Investors January 2, 2019 BCP Important Information Forward-Looking Statements Statements contained in this Presentation (including those relating to the proposed transaction, the
More informationCapital Market Review
Capital Market Review September 3, 215 Percent Percent MARKET/ECONOMIC OVERVIEW Risk Reprices Rapidly 2,2 1,9 1,6 1,3 S&P 5 April 29, 211 to Oct 3, 211 157 Days -19.4% May 21, 215 to Sep 3, 215 132 Days
More informationNot created equal: Surveying investments in non-investment grade U.S. corporate debt
Winter 2016 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors seeking yield and current income opportunities have increased their allocations
More informationPrivate Investments - A Potential Alternative to Frothy Public Markets. January 22, 2018
Private Investments - A Potential Alternative to Frothy Public Markets January 22, 2018 Session Aims Review the context for why and the degree to which leading practitioners allocate to private markets
More informationTHE ALTERNATIVES BASKET
THE ALTERNATIVES BASKET Real Assets Real Estate Private Equity Hedge Funds Infrastructure Distressed Debt Alternatives: a spectrum of opportunities from low risk fixed income substitutes to high risk/high
More informationCapital Markets Outlook 100 LOWDER BROOK DRIVE SUITE 1100 WESTWOOD MA FAX
M E K E T A I N V E S T M E N T G R O U P 00 LOWDER BROOK DRIVE SUITE 00 WESTWOOD MA 02090 78 47 3500 FAX 78 47 34 Investors are faced with three primary issues in the near-term: ) historically low bond
More informationAustralia Private Equity & Venture Capital Index and Benchmark Statistics. June 30, 2017
Australia Private Equity & Venture Capital Index and Benchmark Statistics Disclaimer Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge
More informationAMERICAN INVESTMENT COUNCIL. Performance Update 2017 Q4
AMERICAN INVESTMENT COUNCIL Performance Update 07 Q4 Private Equity Performance Benchmarks (as of December 3, 07) Private Equity Benchmark Returns (Horizon IRR) -Year 3-Year 5-Year 0-Year BISON Private
More informationPan-European Survey of Performance. - From Inception to 31 December
In Association with: RESEARCH NOTES Pan-European Survey of Performance - From Inception to 31 December 2005-27 July 2006 These research notes present the main findings of the 2005 Pan-European Investment
More informationMIDDLE MARKET PANEL DISCUSSION LSTA S 18 TH ANNUAL CONFERENCE. Ioana Barza Director of Analytics
MIDDLE MARKET PANEL DISCUSSION LSTA S 18 TH ANNUAL CONFERENCE Ioana Barza Director of Analytics ioana.barza@thomsonreuters.com 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
More informationSOFTWARE MIDDLE-MARKET UPDATE 3Q2018
SOFTWARE MIDDLE-MARKET UPDATE 3Q218 3Q 218 OVERALL MARKET UPDATE AND ECONOMIC REVIEW Middle-market M&A activity declined for the third consecutive quarter, continuing the same trend experienced over the
More informationUniversity of North Florida Foundation, Inc. Statement of Investment Objectives and Policies
University of North Florida Foundation, Inc. Statement of Investment Objectives and Policies This Investment Policy Statement has been established by the University of North Florida Foundation, Inc. (the
More informationM&A AND CAPITAL MARKETS OUTLOOK SUMMER 2014
M&A AND CAPITAL MARKETS OUTLOOK SUMMER 2014 Inside this Issue: M&A Market Overview M&A Market Activity Middle Market Deal Valuations Private Equity vs Strategic Valuations Middle Market Leveraged Buy Out
More informationJUNE 2015 Private Equity Outlook
JUNE 2015 Private Equity Outlook Table of contents VERUSINVESTMENTS.COM SEATTLE 206-622-3700 LOS ANGELES 310-297-1777 Executive summary 3 Market environment 25 Strategy reviews 8 Focus: Middle market buyout
More informationBoard of Regents Report. for July Texas Tech University System Endowment
Board of Regents Report for July 2017 Texas Tech University System Endowment Contents Endowment Data Endowment Liquidity Market Data Asset Class Allocation: Actual vs. Target Asset Class Performance: Actual
More informationPractical Solutions for Today s Bond Markets VIRTUS SEIX LEVERAGED FINANCE FUNDS
Practical Solutions for Today s Bond Markets VIRTUS SEIX LEVERAGED FINANCE FUNDS The Challenge In a market environment defined by low yields, volatility, and rising interest rates, investors are seeking
More informationNCRS Tentative Transition to New Strategic Asset Allocation
NCRS Tentative Transition to New Strategic Asset Allocation May 22, 2014 Topics Review final changes to Investment Policy Statement Review gaps between current asset allocation and new Strategic Asset
More informationU.S. Venture Capital Index and Selected Benchmark Statistics. March 31, 2016
U.S. Venture Capital Index and Selected Benchmark Statistics Disclaimer Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge Associates
More informationWhy Now for European Senior Secured Loans?
Why Now for European Senior Secured Loans? Market Features, Relative Value & Portfolio Inclusion Benefits The syndicated senior secured loan market, which until 2009 was the dominant sub-investment grade
More informationDEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET LOANS
MARKET INSIGHTS 3Q 2018 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY Middle market investors continue to compete on price and less restrictive documentation, prompted by a sentiment change in leveraged lending
More informationPreqin Research Report Private Equity Investor Survey August 2009
Preqin Research Report Much has changed in the private equity industry in the past year. The global fi nancial crisis has had a massive impact on the asset class, not just on the investments made by fund
More informationPrivate Debt: The opportunity for diversification with illiquid assets.
September 2016 Private Debt: The opportunity for diversification with illiquid assets. Heather Davis President and CIO Nuveen Private Markets Brian Roelke Sector Head, Private Capital Jason Strife Head
More informationUS PE / VC Benchmark Commentary Quarter Ending March 31, 2017
US PE / VC Benchmark Commentary Quarter Ending March 31, 2017 Overview US private equity and venture capital funds had a good first quarter in 2017, as indicated by the Cambridge Associates LLC benchmark
More informationThomson Reuters LPC Loan Conference Middle Market Panel Discussion September 22, 2011
Thomson Reuters LPC Loan Conference Middle Market Panel Discussion September 22, 2011 Middle Market Panel Regions Capital Markets Terry Katon Managing Director and Group Head 704.335.9618 terry.katon@regions.com
More informationComprehensive Annual Review Process
Agenda I. Private Equity Program: A Year in Review II. PE Performance, Portfolio and Compliance III. Private Equity Market Review IV. Forward Looking Plans V. Conclusion 2 Section I 3 Comprehensive Annual
More informationThe enduring case for high-yield bonds
November 2016 The enduring case for high-yield bonds TIAA Investments Kevin Lorenz, CFA Managing Director High Yield Portfolio Manager Jean Lin, CFA Managing Director High Yield Portfolio Manager Mark
More informationPE/VC Impact Investing Index & Benchmark Statistics. June 30, 2017
PE/VC Impact Investing Index & Benchmark Statistics Disclaimer Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge Associates research
More informationCapMan alternative asset manager in the Nordic region and Russia
CapMan alternative asset manager in the Nordic region and Russia Annual General Meeting 2010 Heikki Westerlund, CEO, CapMan Plc 30 March 2010 CapMan update Market environment Contents Financials 2009 2
More informationPREQIN QUARTERLY UPDATE: INFRASTRUCTURE Q Content includes:
PREQIN QUARTERLY UPDATE: INFRASTRUCTURE 218 Insight on the quarter from the leading provider of alternative assets data Content includes: Fundraising Funds in Market Institutional Investors Deals Fund
More informationPrivate Equity CHAPTER 2
Private Equity CHAPTER 2 Concept and Emergence of private equity Structure of private equity firm Life cycle of private equity Types of private equity investments Divestment in private equity fund Due
More informationGSAM Insurance Investment Strategy: Capturing Illiquidity Premium
GSAM Insurance Asset Management January 215 GSAM Insurance Investment Strategy: Capturing Illiquidity Premium Executive Summary In today s low yield and uncertain interest rate environment, an efficient
More informationGeneralist vs. Industry Specialist: What are the trends and where does the advantage lie?
Generalist vs. Industry Specialist: What are the trends and where does the advantage lie? Generalist vs. Industry Specialist: What are the trends and where does the advantage lie? When we debate the generalist
More informationGlobal PE & VC Fund Performance Report. Data through 2Q 2017
Global PE & VC Fund Performance Report Data through 2Q 2017 Contents Key Takeaways 2 IRR by Fund Type 3 PE Fund Performance 4 VC Fund Performance 6 Spotlight: Going with the Flows 8 Credits & Contact PitchBook
More information