Peter Dalgliesh’s Post

With investors finding creative ways to recapture equity and more stable interest rates on the horizon, 2024 could finally be a year of growth. Our partner Brian Forman, who chairs Morrison Cohen’s Investment Funds & Advisers Practice, told ACG Middle Market Growth Magazine about some ways investors are now increasing their capital returns. He said, “We have seen a pickup in real estate and infrastructure investment over the last year… Continuation funds remain very popular. We have seen clients pursuing them on multiple occasions… Discussion about NAV (net asset value) lending is also very common.” Brian noted that as we begin the new year, these are all hopeful signs that deal momentum will increase and return to normalcy in 2024. Read the full article here: https://lnkd.in/gWaXMFkb Read more here: https://lnkd.in/exftU4GB #PrivateFunds #InvestmentFunds #WealthManagement 

" You never know who is swimming naked until the tide goes out." Warren Buffett "Governance shortcomings in private equity, overlooked in the cheap money bonanza, now look pressing as institutional investors query the values private equity managers put on portfolio companies. The valuation issue has been acute since the return of more normal interest rates. Private equity managers have tended to write down their assets’ value by far less than the falls in public markets. This is a nonsense given the higher leverage and illiquidity of the asset category. The writedowns should be far greater than for public equity." #Privateequity #PE #Privatemarkets #Alternativeassets https://lnkd.in/eyMzjGcK

For UK Professional Investors only. Capital at risk. Richard Saldanha has been ranked number one manager in the Global Equity Income category based on total returns over the last two years, and number three over the last five years (Citywire Funds Insider, Global Equity Income, June 30, 2023). https://bit.ly/42sb7Xe #Equities #Investing #Income

ICG Enterprise Trust is identified as one of two private equity trusts said to be exemplifying high-quality proven performance. The article was published last week in The Telegraph. Capital at risk*. Read the full article by Jonathan Davis here: https://lnkd.in/ejRxY4YV #PrivateEquity #PrivateMarkets #InvestmentTrusts #ListedPE #Investing * Investments involve risks, including the risk of capital loss. Past performance is not a reliable indicator of future results.

"DPI is the new IRR" - the new top focus for LPs who's GPs experienced a dearth of exits in 2023. That pressure is one of the key reasons why deal activity in 2024 will be better than 2023 (along with reduced interest rates and inflation).   DPI (Distributed To Paid-In Capital) is essentially the amount of capital returned to the investors in PE funds. It's not only important as an indication of return, but also to help those investors meet their obligations eg to pensioners.   https://lnkd.in/edRS7A8g.

During the week there was some push back from funds expressing their unhappiness in disclosing detailed information about valuations on unlisted assets.  They would prefer to only talk in terms of asset classes.  It is worth noting that there are no standards around asset class definitions. This is an interesting article from Bloomberg that discusses many of the challenges in this space but is also indicating how investors are demanding better information and withholding further investment to get it.  Weekly valuation information being part of the list. The other points raised are also if interest particularly the impact around debt. See https://lnkd.in/e4SVCERm #wealthmanagement #financialplanners #financialadvisor #financialadvice #investing

Rhys Davies, manager of the newly Elite Rated Invesco Ltd. Bond Income Plus Investment Trust (BIPS), discusses the origins, goals, and strategies of BIPS. He also covers the nuances of subordinated bonds and corporate hybrids, the diversification and sectoral spread of the portfolio, and how the trust leverages opportunities in the high-yield bond market, especially during inflationary times https://lnkd.in/esDCPU5f

#showmethemoney "Distributed to paid-in capital" (DPI) has become the most valuable performance metric for #privateequityfunds who want to keep their LPs around. This article discusses why and what kinds of strategies they're using to puff up lagging distributions to their investors. NEDRA (New England Development Research Assoc) #NEDRAHiFi

Check out our latest 2024 report on the current state and future outlook of the Private Equity Industry 🚀

Great to see Chris McVey featured, alongside four other fund managers, in a recent Portfolio Adviser article. It looks at which small and mid-cap companies they expect to become some of the biggest names in the UK market over the next five years. The article discusses how in an ideal world, investors would buy shares in a company during its infancy and reap the potential rewards as it grows in size and influence. However, identifying a company that could become a future household name is a difficult skill that requires a lot of market knowledge. Please remember, investing will place your capital at risk. Click here to see what companies the managers chose: https://bit.ly/4fAi6Ub