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Private Equity 101
Private Capital, Private Equity & Private Debt
Fund accounting, Fund administration, Fund raise
Fund accounting, Fund administration, Fund raise
Forwarded from Private Equity 101
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2025 Private Equity Outlook
https://www.debevoise.com/-/media/files/insights/publications/2025/01/private-equity-report-2025-outlook.pdf
https://www.debevoise.com/-/media/files/insights/publications/2025/01/private-equity-report-2025-outlook.pdf
Private Equity in 2025: Trends, Challenges & Opportunities
https://grata.com/resources/private-equity-trends
https://grata.com/resources/private-equity-trends
Grata
Private Equity in 2025: Trends, Challenges & Opportunities
Private equity outlook for 2025: Explore trends in deals, sector opportunities, valuation shifts, and innovations like Grata’s Deal Network.
U.S. Private Equity Market Recap - January 2025 | Insights | Ropes & Gray LLP
https://www.ropesgray.com/en/insights/alerts/2025/01/us-pe-market-recap
https://www.ropesgray.com/en/insights/alerts/2025/01/us-pe-market-recap
Ropesgray
U.S. Private Equity Market Recap - January 2025 | Insights | Ropes & Gray LLP
Read our latest insights into the U.S. private equity market. We cover monthly deal activity and size, fundraising, exits, leveraged loans, and a look ahead.
Private Capital in Focus: 2025 Trends to Watch - MSCI
https://www.msci.com/www/blog-posts/private-capital-in-focus-2025/05274349366
https://www.msci.com/www/blog-posts/private-capital-in-focus-2025/05274349366
Msci
Private Capital in Focus: 2025 Trends to Watch | MSCI
Investors in private markets enter 2025 with USD 2 trillion in dry powder but also challenges such as historically low distribution rates and elevated interest rates. MSCI Research highlights four trends across asset classes that deserve investors’ attention.
PE firms are stuck in a “sell now” loop. After holding investments for ~5 years (up from 4.2 pre-pandemic), they’re racing to return cash to investors.
Exits jumped 22% in 2024, but 2025 could see IPOs and “continuation funds” (keeping good assets longer) take off. Watch for PE-backed companies like Smartsheet ($8.4B sale to Blackstone/Vista) to hit the stock market.
Meanwhile, tariffs on Chinese EVs and Trump’s trade wars are complicating green mobility investments—59% of which are in Asia.
Exits jumped 22% in 2024, but 2025 could see IPOs and “continuation funds” (keeping good assets longer) take off. Watch for PE-backed companies like Smartsheet ($8.4B sale to Blackstone/Vista) to hit the stock market.
Meanwhile, tariffs on Chinese EVs and Trump’s trade wars are complicating green mobility investments—59% of which are in Asia.
Private Equity—2024 Review and 2025 Outlook
https://corpgov.law.harvard.edu/2025/01/24/private-equity-2024-review-and-2025-outlook/
https://corpgov.law.harvard.edu/2025/01/24/private-equity-2024-review-and-2025-outlook/
PE Newsletter
1. Brookfield Joins $3bn Tussle for Insignia
Australian wealth manager Insignia Financial is caught in a bidding war. Brookfield Capital Partners entered with a $3.1 bn bid, matching offers from Bain Capital and CC Capital. Insignia has shared its financial details with Brookfield to encourage a higher offer. The competitive process continues as due diligence and regulatory approvals are completed.
Source | Published: Tue Feb 4 23:44:10 2025 UTC
2. KKR Raises Its Direct Stakes in Three Companies
KKR is adding $1.1 bn to its direct investments in companies like USI Insurance Services, 1-800 Contacts, and Heartland Dental. By using its own funds instead of pooled capital, KKR aims to boost earnings in its Strategic Holdings group. Despite a brief stock dip, this move shows strong confidence and a focus on long-term in-house investments.
Source | Published: Tue Feb 4 20:05:00 2025 UTC
3. UK Pension Fund Pledges £5bn to Australia’s IFM
The UK pension fund Nest has committed £5bn to invest with Australian infrastructure firm IFM Investors. This deal will help launch a Europe-focused infrastructure debt fund and broaden Nest’s exposure to private markets. The move supports government efforts to boost alternative investments, aiming to improve returns and support economic growth.
Source | Published: Tue Feb 4 16:13:15 2025 UTC
4. ‘New Toys’ Are Back at Apollo as It Chases M&A Growth
Apollo’s CEO Marc Rowan announced a shift in strategy during the year-end earnings call. The firm is now pursuing modest mergers and acquisitions, moving away from its old “no new toys” approach. The recent purchase of Argo Infrastructure Partners, with $6bn in assets, aims to boost Apollo’s lending and offer new products for public asset managers.
Source | Published: Tue Feb 4 18:11:18 2025 UTC
5. KKR Quarterly Profit Beats Expectations on Dealmaking Revival
KKR’s latest quarterly report shows profits beating expectations. Fee-related earnings rose by 25% and net income increased by 33%. The firm also increased stakes in key investments by $1.1bn, highlighting a revival in dealmaking activity. This strong performance, achieved despite market challenges, reinforces KKR’s effective investment strategy.
Source | Published: Tue Feb 4 11:58:53 2025 UTC
Glossary
Due Diligence: The careful review of a company’s financial and operational details before making an investment.
Direct Investment: Investing company funds directly in a business rather than through a pooled fund.
EBITDA: Earnings before interest, taxes, depreciation, and amortization; it measures a company’s operating performance.
Continuation Fund: A vehicle that allows a private-equity firm to transfer assets from an older fund to a new one, letting some investors exit while retaining the asset.
Dry Powder: The cash reserves that private-equity firms keep available for new investments.
GP-led Deals: Transactions initiated by the general partner (investment manager) to restructure investments or provide liquidity to existing investors.
1. Brookfield Joins $3bn Tussle for Insignia
Australian wealth manager Insignia Financial is caught in a bidding war. Brookfield Capital Partners entered with a $3.1 bn bid, matching offers from Bain Capital and CC Capital. Insignia has shared its financial details with Brookfield to encourage a higher offer. The competitive process continues as due diligence and regulatory approvals are completed.
Source | Published: Tue Feb 4 23:44:10 2025 UTC
2. KKR Raises Its Direct Stakes in Three Companies
KKR is adding $1.1 bn to its direct investments in companies like USI Insurance Services, 1-800 Contacts, and Heartland Dental. By using its own funds instead of pooled capital, KKR aims to boost earnings in its Strategic Holdings group. Despite a brief stock dip, this move shows strong confidence and a focus on long-term in-house investments.
Source | Published: Tue Feb 4 20:05:00 2025 UTC
3. UK Pension Fund Pledges £5bn to Australia’s IFM
The UK pension fund Nest has committed £5bn to invest with Australian infrastructure firm IFM Investors. This deal will help launch a Europe-focused infrastructure debt fund and broaden Nest’s exposure to private markets. The move supports government efforts to boost alternative investments, aiming to improve returns and support economic growth.
Source | Published: Tue Feb 4 16:13:15 2025 UTC
4. ‘New Toys’ Are Back at Apollo as It Chases M&A Growth
Apollo’s CEO Marc Rowan announced a shift in strategy during the year-end earnings call. The firm is now pursuing modest mergers and acquisitions, moving away from its old “no new toys” approach. The recent purchase of Argo Infrastructure Partners, with $6bn in assets, aims to boost Apollo’s lending and offer new products for public asset managers.
Source | Published: Tue Feb 4 18:11:18 2025 UTC
5. KKR Quarterly Profit Beats Expectations on Dealmaking Revival
KKR’s latest quarterly report shows profits beating expectations. Fee-related earnings rose by 25% and net income increased by 33%. The firm also increased stakes in key investments by $1.1bn, highlighting a revival in dealmaking activity. This strong performance, achieved despite market challenges, reinforces KKR’s effective investment strategy.
Source | Published: Tue Feb 4 11:58:53 2025 UTC
Glossary
Due Diligence: The careful review of a company’s financial and operational details before making an investment.
Direct Investment: Investing company funds directly in a business rather than through a pooled fund.
EBITDA: Earnings before interest, taxes, depreciation, and amortization; it measures a company’s operating performance.
Continuation Fund: A vehicle that allows a private-equity firm to transfer assets from an older fund to a new one, letting some investors exit while retaining the asset.
Dry Powder: The cash reserves that private-equity firms keep available for new investments.
GP-led Deals: Transactions initiated by the general partner (investment manager) to restructure investments or provide liquidity to existing investors.
The Wall Street Journal
KKR Raises Its Direct Stakes in Three Companies
The firm said it would increase its investment in the companies by $1.1 billion in total as part of its unusual strategy of taking long-term stakes in businesses it likes.
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