Sun, Jan 20, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private Equity may have run its way

Wednesday, December 19, 2018

Laxman Pai, Opalesque Asia:

Investing in private equity may have run its way in the current cycle with valuations having become very high and given the amount of dry powder waiting to be invested.

Daniel von Allmen, Chairman & CIO, Progressive Capital, said at a recent Opalesque Switzerland Roundtable in Zurich that as a value and contrarian investor he would not be interested in private equity at this point. "We are talking about more than a trillion dollars waiting to be deployed in private equity. The larger private equity investments are now valued at 14 times EBITDA, so this is definitely not a great time to buy private equity, I think. But if you talk to clients, they are not really attracted to hedge funds, neither to quants or trend followers, but they love private equity," he said.

"People tend to lose sight that assets move in cycles - we have always experienced cycles and we are just experiencing another one, being actually pretty close to the end of that cycle," he added.

Changing demand patterns

Cyclical investments will be causing issues when the cycle starts turning and private equity is cyclical as well, said Sebastian Schaefer, Managing Partner & Founder, Green Shoots Capital: "The visible demand patterns currently are actually supporting my thesis here. It's quite evident in the industry that there is demand for equity replacement, for fixed income replacement, and for more alternative allocations becaus......................

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. Gundlach's Forecast for 2019[more]

    Jeffrey Gundlach said that 2019 will mark the start of a period when bond markets must recon with the rising federal deficit. In his most passionate comments ever on this topic, he said the exploding national debt and liabilities involving pension funds, state and local government governments and So

  2. Institutional Investors: Texas Teachers allocates $1.9bn to 12 strategies, $53.6bn LGPS asset pool readies double global equity launch, The rise of co-investment SPVs for institutional investors, Wisconsin commits $500m to alternatives[more]

    Texas Teachers allocates $1.9bn to 12 strategies From Texas Teachers Retirement System, Austin, committed a total of $1.871 billion to 12 private market investment strategies managed by existing managers, a transaction report showed. The biggest move by investment officers o

  3. News Briefs: The Jeff Bezos divorce: $136bn and Amazon in the middle, Bridgewater Associates partners with consulting firm, Cyprus no longer Mediterranean haven for Russian businesses, Goldman Sachs on course to launch cash management in mid-2020[more]

    The Jeff Bezos divorce: $136bn and Amazon in the middle From Mint: The announcement by Amazon founder Jeff Bezos, the world's wealthiest man, and his wife that they will divorce has captivated the imagination -- how will they split his giant fortune, estimated at $136 billion? And what wi

  4. Institutional Investors: Institutional investors plot large property allocations, Qatar Investment Authority aims to reach $45bn in U.S. investments, Louisiana Teachers assigns $200m, SoftBank move to slash WeWork investment sends shockwaves[more]

    Institutional investors plot large property allocations From FT: Institutional investors plan to make large allocations to property in 2019, taking them closer to their desired targets. At least €72.4bn of new capital is expected to flow into real estate this year, according to a

  5. Legal: Attorney sues after Tampa hedge fund goes under, Hedge funds showing increased interest in litigation claims, Argentina sued again by hedge fund on bonds tied to GDP growth[more]

    Attorney sues after Tampa hedge fund goes under A Tampa hedge fund company may be in legal trouble after the firm that was holding its money was sued by a lawyer who claimed "gross negligence" caused the fund to lose tens of millions of dollars. James Cordier, the head of optionseller