Wed, Dec 12, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Nordic private equity firms take a new interest in public markets

Tuesday, November 27, 2018

Bailey McCann, Opalesque New York:

Nordic private equity firms are becoming more active in the public markets, a shift which could impact hedge funds in the region according to delegates at the recent Opalesque Nordic Roundtable.

"We have seen that some Nordic private equity firms are expanding their mandates and allowing themselves to invest in public markets, which is causing valuations to creep up," said Carl Rydin, Investment Analyst at Origo Capital. Rydin pointed to EQT's acquisition of Zeres Capital as well as the public markets team at Triton as recent examples of this trend.

Private equity firms are typically taking minority stakes in public companies. Acting as sort of patient activists, private equity sets a goal of improving company operations over a 3-5 year period as a significant but still minority shareholder. Rydin adds that as dry powder continues to build up in private equity and the competition for potential targets gets more intense, he expects to see more private equity firms change their mandates so that they can be involved in public markets in this way.

Delegates noted that investors are generally ok with an expanded mandate if the investments GPs are making in public companies are sufficiently long-term. For institutional allocators working from a very long-term investment horizon, daily liquid strategies can have some drawbacks. The minority shareholder approach gives those investors an additional stake in the public markets bu......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. People: Deutsche Bank appoints new country head in Switzerland, London's MENA Capital and Dubai's Al Mal agree collaboration deal, BlueBay appoints new CIO[more]

    Deutsche Bank appoints new country head in Switzerland From Investment Europe: Deutsche Bank has appointed Claudio de Sanctis as the new chief executive officer of Deutsche Bank (Switzerland) Ltd, effective 1 February 2019, after Peter (Pedro) Hinder decided to step down. The appoint

  2. Hedge funds pivot back to stocks, raising leverage from 2018 low[more]

    From Bloomberg: The smart money is finally warming up to U.S. equities after turning defensive in the past few months. Hedge funds' gross leverage, a measure of the industry's risk appetite, climbed 2.5 percentage points to 234.5 percent as of Nov. 29 from a one-year low reached 10 days earlier, cli

  3. Brexit: Hedge funds make big bets against post-Brexit UK economy, Hedge funds rent a lifeline to stay afloat in EU post-Brexit, Treasury green-lights sale of new EU funds into UK[more]

    Hedge funds make big bets against post-Brexit UK economy From The Guardian: A pair of hedge funds owned by prominent Brexit supporters have made significant bets against companies exposed to the British consumer including big high street names. Odey Asset Management, part-owned by Cr

  4. Trends: Licking their wounds, fund managers prep for rally in '19, Concerns rising over leveraged loan market[more]

    Licking their wounds, fund managers prep for rally in '19 From Reuters: With bond and equity markets from the United States to emerging markets all on pace to lose money this year, investors have not seen this much red on their screens since 1972, the last time no asset class returned at

  5. New Launches: Swiss boutique launches EM impact bond fund, Jungle Ventures to raise $200m third venture capital fund, CPR AM licences five funds with new climate rating, Sailing Capital seeks $1.5bn for second fund, Liquid multi-strategy alts focus of new Schroder fund, Vivo Capital rakes in $864m, Swiss group launches sustainable European small-cap fund[more]

    Swiss boutique launches EM impact bond fund From City Wire: Swiss impact investmenting boutique BlueOrchard has launched a Ucits-complaint impact bond fund. The Luxembourg-domiciled Emerging Markets SDG Impact Bond fund will allocate to companies in emerging and frontier markets and aims t