• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • GPs

Haul of large funds closings in Q1 2023 clouds new managers outlook – conference

  • Rachel Lewis
  • 21 November 2022
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

With a haul of large funds now expected to hold closings in the first quarter of next year, emerging and midcap managers are likely to endure an even tougher fundraising environment, participants at the SuperInvestor conference told Unquote.

Allocations could be dragged further away from new managers as established GPs with delayed fundraising process suck up the new money expected to made available by institutional investors in the new year.

According to one placement agent that spoke to Unquote, many of the big-ticket private equity funds that have been on the road through 2022 are due to hold final closes as the new LP allocations become available in the new year.

Bridgepoint, which is on track for a H1 2023 close of its EUR 7bn Bridgepoint Europe Fund VII, is expected to be joined by the likes of EQT, CVC, Cinven and Astorg in the closing of their flagship strategies in the new year, according to the placement agent.

Many LPs during SuperInvestor last week said that they are focused on high-quality, well-established managers in the ongoing capital crunch, further compounding ongoing liquidity problems for emerging and mid-market sponsors. 

Funds of all sizes are, however, unlikely to see huge size increases as LPs flinch even from existing relationships.

“We’re writing smaller average commitment sizes,” one US pension fund told Unquote, echoing the comments of many LPs. “Flat is the new up, we’re moving slow and committing less, transitioning to be a bit more down market.”

Good vintages

In parallel, a plethora of cheap assets expected to come to market could feed good vintages in the coming years, participants at the conference said.

The growing gap between buyer and seller expectations – the biggest one large GP executive said he has seen in his career – alongside low public market valuations and distressed situations mean that GPs are expecting to feed good vintages in the coming years.

“2023 could be a very interesting year to deploy capital,” said the same GP executive. “There will have to be a reset and we expect to be back full-on by the middle of next year.”

Another UK-based GP said there is an “interesting source of deal flow” in companies that cannot refinance and end up in the hands of creditors and under-invested, as well as orphan divisions in listed conglomerates that are trading at a discount.

A less competitive M&A auction market will feed into less punchy valuations that will ultimately feed into better returns, said another large-cap GP executive. “The auction dynamic of paying more has tempered. There is the same number of competitors, but there won’t be this one guy who needs to buy so goes in 50% above the other offers.”

In the midst of the cash crunch, LPs are exploring different ways to capitalise on the opportunities. Although being about 300-400 bps overallocated to private equity due to the denominator effect, the US pension fund executive is also growing its co-investments strategy as a means to get access to access to the coming vintages.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • GPs
  • LPs
  • Funds
  • Deals
  • Fund financing
  • Bridgepoint
  • Cinven
  • CVC Capital Partners
  • Astorg Partners
  • EQT

More on GPs

EU foreign subsidies regulations
EU FSR could impact PE fundraising with potential rise in ‘clean funds’

FSR could lead GPs to create funds without foreign LPs; red tape around sovereign wealth funds likely

  • Regulation
  • 01 September 2023
Jan Cerny of BHM Group
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • Investments
  • 01 September 2023
Bettina Curtze of Redalpine
Redalpine expands leadership team amid CHF 1bn-plus fundraise

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • Venture
  • 31 August 2023
Canary Wharf and the financial centre of London
IPO offers CVC chance to become multi-asset consolidator

Potential IPO also offers monetisation solution for founders and GP stakes investor Blue Owl

  • GPs
  • 25 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013