Tue, Mar 26, 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. Half of real estate investors are considering investing in opportunity zone funds (OZFs) in 2019[more]

    Laxman Pai, Opalesque Asia: A survey found that 51% of real estate investors were considering investing in opportunity zone funds (OZFs) in 2019, while a further 12% are interested in the longer term. A less widely publicized part of the 2017 Tax Cuts and Jobs Act in the US was the creation

  2. New Launches: WhiteBox duo plans to launch new event-driven distressed debt fund, UBP unveils credit long/short fund, Man GLG launches high yield fund for ex-Schroders manager Scott, Caisse de d?p?t et placement du Qu?bec launches $250m AI fund, Accel Partners raises $2.5bn across three funds[more]

    WhiteBox duo plans to launch new event-driven distressed debt fund From Bloomberg: Whitebox Advisors LLC colleagues Cindy Delano and Amit Patel have teamed up to form a hedge fund focused on event-driven and special situations that could arise as credit markets tighten. Invictus Glob

  3. Morgan Creek Digital makes strategic investment in Ikigai Asset Management[more]

    Laxman Pai, Opalesque Asia: Morgan Creek Digital Assets (MCDA) has made a major new investment in another crypto-related firm. The hedge fund is committing to a new fund launched by Ikigai Asset Management (IAM). MCDA, founded by Mark Yusko, Jason A. Williams, and Anthony Pompliano, said in a

  4. People: Head of top hedge fund association to step down, Former State Street Exec to lead Equity Trust, Affiliated Managers names Thomas Wojcik next chief financial officer, MoraBanc restructures following Goldman Sachs partnership, Franklin Templeton expands emerging markets equity team[more]

    Head of top hedge fund association to step down From The Hill: Former House lawmaker Richard Baker, who has led the Managed Funds Association (MFA) for more than a decade, announced Wednesday that he will step down at the end of the year. MFA, which represents the hedge fund industr

  5. Al Breach's hedge fund rockets to $1.4bn in assets[more]

    From Intelli News: A hedge fund founded by former Russian star strategist Al Breach has seen its assets under management rocket by 70% last year to almost $1.4bn, bne IntelliNews can reveal. Gemsstock's client assets climbed to $1.37bn by September 2018 from $830mn for the prior year, according to a