ULI United Kingdom’s Post

Delighted to attend the Mergermarket Private Equity and M&A Conference today at The Langham Hotel in London. Anu Aiyengar, Global Head of M&A at J.P. Morgan, opened the conference with her thoughts on dealmaking activity globally. She cited deglobalisation, digitisation and decarbonisation as key deal drivers, despite a mismatch in valuations between public and private markets. Some of the key themes of the conference were challenges with valuations in M&A processes and discrepancies in price expectations between buyers and sellers. This is partly due to instability in baseline EBITDA of many companies in the wake of the pandemic, making financial forecasts difficult. Private equity funds are facing increasing pressures from redemptions to return value to their investors, in the midst of decreasing valuations of businesses that once delivered above-average returns. They are now turning away from financial leverage and toward operational leverage to drive value in a higher interest rate environment. Strategic corporate investors are well-positioned for M&A, with the ability to realise cost synergies and use their underlying shares as a financing tool for acquisitions. Corporate boards are now increasingly looking at 'M&A chess boards', while a growing number of activist shareholders view dealmaking as a solution to drive value. The conference featured an impressive line-up of speakers from companies including J.P. Morgan, Rothschild & Co, Deutsche Numis, Liberum, CMS, Lazard, Gatemore Capital Management, Petrus Advisers, Patria Investments, Investec, Raymond James, Palatine, Horizon Capital, Competition and Markets Authority. Thank you to Mergermarket for hosting an excellent event. #Mergers #Acquisitions #PrivateEquity #Conference

In more than 21 years of experience as a CEO, Adam Coffey built 3 national service companies for 9 private equity sponsors. During this period, he completed 58 acquisitions; and on average, the companies he ran delivered a 5x ROIC at exit. Sitting down with AlixPartners’ Connor Lott, Adam Coffey discusses the outlook for PE in 2024, and how portfolio company management can best partner with their investors and operators. #privateequity #ceoinsights #transformation #ceo #executiveleadership #csuite

the #ceo of a #privateequity #portfoliocompany has a set of special challenges: a ticking clock, a by-definition activist investor, and, often, a lot of personal upside; it's also true that a very high % of PortCo CEOs don't last in their job through the holding period. A big reason is that they don't set the right parameters, governance, rhythm, and expectations with their operating partners, and this insightful interview of Adam Coffey--a veteran PortCo CEO and operating partner--talks about some of the issues, questions, and answers. Well done by Connor Lott of AlixPartners

The wealth management industry is consolidating, impacting investment trusts where they hold significant stakes. Larger wealth managers, formed from mergers like Rathbones and Investec, struggle to invest in smaller trusts due to their substantial assets under management. This consolidation has widened investment trust discounts. **Investment trusts trading at a discount**👉 https://lnkd.in/eeR6KuMy The trend, however, is reversing. New, smaller wealth management firms emerge from previously consolidated entities. These firms, needing £100-£200 million in assets under management to be sustainable, are well positioned to invest in trusts, leveraging their smaller scale to be nimble and capitalise on opportunities. As they grow, these new firms could significantly influence investment trust demand, potentially narrowing discounts and boosting performance. William Heathcoat Amory Kepler Partners LLP #investing #business #economy #markets #money #businessintelligence Source: https://lnkd.in/eb6B9uPK

DeVoe & Company always puts together a fantastic M&A Succession Summit. The insights shared by the panel with my colleague Kara Duckworth, CFP, Matt Cooper, Michael LaMena was worth price of admission alone. Thank you all for sharing the pitfalls to avoid as well as what you should highlight when you prepare to sell your RIA firm. #DeVoeMASummit24 #RIA #MergersandAcquisitions #WealthManagement

In a recent interview with Connor Lott of AlixPartners, experienced CEO Adam Coffey shared his outlook for PE in 2024 and how portfolio company management can best partner with their investors and operators. Coffey has an impressive track record, having built 3 national service companies for 9 private equity sponsors over 21 years. During this time, he completed 58 acquisitions and delivered a 5x ROIC at exit on average. Don't miss out on the valuable insights from this PE-backed CEO. Check out the full interview here: https://lnkd.in/gmPARJMD. #PE #investors #operators #portfolio #management #CEO #interview

According to recent coverage from PitchBook, there’s a notable shift in exit strategies among #privateequity firms, highlighting a growing preference for #secondarybuyouts (SBOs). Despite a decrease in overall private equity exit volume and value, SBOs have surged to 30.5% of all exits in Q1, up from 25.2% year-over-year. This trend supports a move towards more predictable, efficient exit pathways, likely influenced by the current abundance of dry powder and a challenging fundraising environment. In our newest Foley Ignite blog post, Eric Chow and I break down what this report means for #mergersandacquisitions, delve into what these shifts mean for the future of PE and SBOs. We explore the strategic advantages of SBOs, such as speed and immediate liquidity, alongside potential risks like overpayment and leadership transition challenges. Head over to Foley Ignite to get a deeper understanding of Q1’s PE exit landscape and what it might signal for future dealmaking strategies - https://lnkd.in/gcwMP3ZK #vc #innovation #startupbusiness #techlaw #foleyforward #garage2global Foley & Lardner LLP

PE News Weekly 📈 📍 Pritzker Private Capital is aiming for $3 billion in its fourth buyout fund, closing in Q4 2024. Founded by Tony and JB Pritzker, the firm focuses on mid-market North American businesses in manufactured products and services. PPC prioritizes long-term investments and control investments with EBITDA over $15 million and enterprise values between $200 million and $1.5 billion. Recent investments include HeartLand, Lawley, and Sugar Foods Corp. 📍 Hargreaves Lansdown, the UK's largest investment platform, has endorsed a £5.4 billion takeover offer from a consortium led by CVC Capital Partners, valuing the company at £11.40 per share. The consortium includes Nordic Capital and Platinum Ivy. The board supports the offer, pending formalization. Co-founders Peter Hargreaves and Stephen Lansdown have differing views on the deal. Hargreaves Lansdown manages £150 billion in assets. 📍 Lazard seeks to acquire a private credit firm to boost its $250 billion asset management division. CEO Peter Orszag highlighted the focus on private credit, infrastructure, and real estate, stressing the importance of careful evaluation for pricing and cultural fit. He aims to double revenue by 2030 with balanced growth in advisory and asset management. JPMorgan Chase has also been pursuing private credit acquisitions. Last year, the Abu Dhabi wealth fund ADQ considered acquiring Lazard, but talks ended over concerns about independence. #privateequity #privateequitynews #rawselection