Pablo Garcia Olalla’s Post

Illiquid and semi-liquid alternative investment fundraising totaled approximately $87.5 billion through September 2024 led by non-traded business development companies at an estimated $26.4 billion; interval funds at $20.6 billion; and other private placements, including infrastructure and private equity offerings, at $16 billion. Non-traded BDC fundraising is up nearly 92% as compared to this time last year, while non-traded real estate investment trust fundraising is down 49%, respectively. The industry continues to transform as investors shift their portfolio allocations to private placement offerings, infrastructure, private equity, and higher-yielding, credit-focused investments. Robert A. Stanger & Company, Inc. Kohlberg Kravis Roberts & Co. L.p. Ares Management Corporation Blackstone Blue Owl Capital Cliffwater Randy Sweetman Michael Covello, MBA Michael O'Neil #alternativeinvestments #Ares #BDC #Blackstone #BlueOwlCapital #businessdevelopmentcompany #Cliffwater #fundraising #intervalfund #KohlbergKravisRobertsCo #privateequity #privateplacement #realestateinvestmenttrust #REIT #Stanger

Alternative Investment fundraising totaled nearly $57.4 billion through June led by non-traded business development companies at an estimated $18 billion, interval funds at $13.6 billion and other private placements, including infrastructure and private equity offerings, at $10.3 billion. Non-traded BDC fundraising is up nearly 133% as compared to this time last year while non-traded real estate investment trust fundraising is down 61%, respectively. Capital formation in public non-traded REITs has contracted in part due to investors shifting toward private placement REITs. Private REITs have raised $2.5 billion year-to-date, which already exceeds the total raised for the full year in 2023. Robert A. Stanger & Company, Inc. Blackstone Blue Owl Capital Ares Management Corporation Kohlberg Kravis Roberts & Co. L.p. FS Investments Apollo Global Management, Inc. LaSalle Investment Management HPS Investment Partners, LLC Kennedy Lewis Investment Management LLC First Eagle Investments Randy Sweetman Michael Covello, MBA Michael O'Neil #Stanger #alternativeinvestments #fundraising #businessdevelopmentcompany #BDC #REIT #realestateinvestmenttrust #privateplacement #privateequity #intervalfund #Blackstone #Ares #Cliffwater #BlueOwlCapital #KohlbergKravisRoberts&Co

What's the future of private equity fundraising likely to look like? AltAssets has broken down the latest data to decipher capital constraints, stretched fundraising timelines and what GPs are doing to prepare. Private equity fundraisers are increasingly pessimistic about the time it will take to raise their next fund, amid a macroeconomic environment which has led to shrinking liquidity from exits. About 58% of GPs surveyed by Investec for its latest PE Trends report said they expect their next fundraise to take more than three months longer to close than their last, with over a quarter of respondents anticipating it to take at least six months longer. Read the full story here: https://lnkd.in/ebfEHniu Read the full story here:

Turbulent market conditions earmarked by expensive borrowing costs and low asset valuations are causing investment returns in the private equity industry to decline. These agitated conditions are having a particular knock-on-effect in fundraising efforts, which is projected to continue a downhill trend. Fund specialists Jérôme Mullmaier and Mathilde Scheirlinck have written an article looking back at the impact of such trends on fundraising over the last year, while looking into potential ways to bounce back. They are covering this topic by diving into the developments impacted by this tumultuous market, such as: innovative solutions to fill in the liquidity gap, adaptation of the fund terms to secure commitments, and a forward-looking view on emerging market trends. You can read the full version of the article on our website 👉 https://lawand.tax/3TpVLyv Shorter versions of the article can also be found on the AGEFI and Paperjam. #lawandtax #luxembourg #funds #fundraising #privateequity

Sluggish exit and fundraising environment: Jérôme Mullmaier and I discuss how to bounce back. Check out our article and reach out should you have any questions!

Swiss firm Partners Group Holding AG is expanding its offering of fund structures that allow investors the option of putting in and taking out their money more easily than typical private-asset vehicles as it looks to tap more retail investors. Partners Group is introducing two new funds in Europe and Asia with so-called evergreen structures, according to a statement seen by Bloomberg News. #CrossBorder #Education #Energytransition #evergreenfunds #Fundraising

Fundraising in alternative investments is recovering and seems to be increasing with debt/credit - focused offerings leading the way. These will continue to be popular, with special emphasis on debt and preferred equity investments being made post-2022 interest rate hikes vs. pre hikes. Investors should look to the future as well and start making equity investments, as commercial real estate has seen a 21% drop in values, peak to trough, and equity investors have a new opportunity to enter the market at an adjusted basis. If the "market" is down 21%, the entry point for distressed assets could be in a discount range of 30-50% from peak values, a very similar dynamic to what we saw in 2008. Considering elevated construction costs, this entry point offers a sizable discount to "as constructed" values, something Caliber tracks to understand fundamental value.

Last year was the biggest year for secondaries fundraising on record, according to data from Secondaries Investor.    Funds that held final closes for secondaries across all asset classes hit $117.28 billion last year, more than double 2022’s figures.    Secondaries have fast become a viable liquidity route, enabling limited partners (LPs) to make an early exit, liquidate assets or rebalance their portfolios. The key is technology which has unlocked this viability, automating and digitising secondary transactions, and closing the efficiency gap to public markets.    Read more about the data: https://lnkd.in/gqMA-55P     #PrivateMarkets #PrivateEquity #Secondaries #Fundraising 

🚀 How are Private Equity GPs Adapt to Challenging Fundraising Market? In response to a tough fundraising environment, general partners (GPs) are adjusting fund terms to attract limited partners (LPs). A recent study by Paul, Weiss, Rifkind, Wharton & Garrison reveals key strategies and trends in the market: Key points: 1. Fee Discounts: In 2023, 38% of GPs offered early bird discounts on management fees, up from 18% in 2022. This trend reflects the increasing pressure on GPs to provide more attractive terms. 2. Extended Offering Periods: 27% of GPs kept their funds open longer than 12 months in 2023, compared to 11% in 2022. This extension gives LPs more time to commit capital. 3. Recycling Provisions: 53% of private equity funds limited recycling based on a specified time period in 2023, down from 73% over the past two years, showing more flexibility in fund terms. 4. GP Commitments: The average GP commitment to their own funds declined from 5.2% in 2021 to 3.9% in 2023. Only 15% of GPs committed 6% or more of aggregate capital to their funds last year, down from 22% in the previous two years. Despite these challenges, there are signs of recovery. Differentiated strategies such as infrastructure, opportunistic, and certain types of technology-related strategies are appealing to LPs. The easing of the denominator effect and an uptick in dealmaking are early indicators of market improvement. 📈 According to Marco Masotti, partner and global co-head of the investment funds group at Paul Weiss, "The fundraising market is more favorable towards LPs than it has been in many years, and the outlook is uncertain. However, we are in the early stages of a recovery, with LPs increasingly finding ways to provide liquidity and recommit to new funds." (Source: Paul, Weiss study - "GPs Hope to Lure LPs with Fee Discounts and Longer Offering Periods") #PrivateEquity #Fundraising #Investment #GPs #LPs #FeeDiscounts #MarketTrends #Recovery #PaulWeissStudy

The shift towards deal-by-deal fundraising in the private equity sector reflects a strategic adaptation to the current economic environment and investor preferences. With the market downturn and the challenges in securing attractive new deals due to higher interest rates, private equity firms are finding innovative ways to attract investment. The move to single deal offerings with lower fees is a response to the difficulties faced in traditional fundraising methods, where investors are hesitant to commit large sums for extended periods due to high management fees and the uncertainty of returns. #privateequity #fundraising