Dona Ferentes
Did the Thessalonians write back?
- Joined
- 11 January 2016
- Posts
- 20,009
- Reactions
- 27,529
still at a discount
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I think the old axioms apply; if you don't understand it, don't bother investing.
...lots of jargon, complexity and footnotes
Outlook
Private equity deal activity returned in 2024 after two years of decline and enjoyed its third most active year on record in terms of deal value. While macro-uncertainty stemming from tariff-related concerns, geopolitical uncertainty, and an uncertain outlook for inflation and growth has limited the private equity dealmaking frenzy many predicted would occur following the US presidential election, 2025 is off to a strong start, with aggregate announced US private equity deal count and deal value up by over 8 and 28%, respectively, in the first half of 2025 compared to the same period last year. This increased deal activity suggests an increase in private equity exits year-over-year, with 2025 exit activity in the US expected to surpass 2024 levels based on annualised H1 2025 activity.
This data is supported by PE1’s experience. Not only did since inception aggregate distributions received by PE1 from its investments increase 50% over the last 12 months, they have continued to be strong at the start of the new fiscal year – PE1’s investment in GCM Grosvenor Multi-Asset Class Fund II LP (MAC II), which makes direct and co-investments, alone distributed $12M to PE1 in the first 45 days of the year, stemming from several transactions including partial sales of our positions in Instacart and the National Stock Exchange of India. ... we currently expect distributions to materially increase over the next 12-18 months as we continue to look for, and find, opportunities to monetise PE1’s investments at attractive valuations.
Further, with some of PE1’s prior commitments still to be drawn and meaningful dry powder expected as a result of the aforementioned realisations, PE1 is well-placed to tactically take advantage of attractive, differentiated private equity opportunities that present themselves in the current market environment. We believe that because PE1 focuses on the middle market, which typically has lower purchase price entry multiples and requires less leverage, and targets investments in market leading companies with pricing power that operate in sectors with resilient demand drivers and/or secular tailwinds, PE1 should be positioned for success in any market environment.
We are pleased with the quality of PE1’s underlying portfolio and believe that our disciplined build out of a well-diversified portfolio of private equity investments should enable PE1 to achieve its NAV-based investment objective. Coupled with our ongoing buyback initiative, unitholders are also well-placed to benefit from NAV accretion and an increase in the ASX unit price.
.
I think the old axioms apply; if you don't understand it, don't bother investing.
...lots of jargon, complexity and footnotes
Outlook
Private equity deal activity returned in 2024 after two years of decline and enjoyed its third most active year on record in terms of deal value. While macro-uncertainty stemming from tariff-related concerns, geopolitical uncertainty, and an uncertain outlook for inflation and growth has limited the private equity dealmaking frenzy many predicted would occur following the US presidential election, 2025 is off to a strong start, with aggregate announced US private equity deal count and deal value up by over 8 and 28%, respectively, in the first half of 2025 compared to the same period last year. This increased deal activity suggests an increase in private equity exits year-over-year, with 2025 exit activity in the US expected to surpass 2024 levels based on annualised H1 2025 activity.
This data is supported by PE1’s experience. Not only did since inception aggregate distributions received by PE1 from its investments increase 50% over the last 12 months, they have continued to be strong at the start of the new fiscal year – PE1’s investment in GCM Grosvenor Multi-Asset Class Fund II LP (MAC II), which makes direct and co-investments, alone distributed $12M to PE1 in the first 45 days of the year, stemming from several transactions including partial sales of our positions in Instacart and the National Stock Exchange of India. ... we currently expect distributions to materially increase over the next 12-18 months as we continue to look for, and find, opportunities to monetise PE1’s investments at attractive valuations.
Further, with some of PE1’s prior commitments still to be drawn and meaningful dry powder expected as a result of the aforementioned realisations, PE1 is well-placed to tactically take advantage of attractive, differentiated private equity opportunities that present themselves in the current market environment. We believe that because PE1 focuses on the middle market, which typically has lower purchase price entry multiples and requires less leverage, and targets investments in market leading companies with pricing power that operate in sectors with resilient demand drivers and/or secular tailwinds, PE1 should be positioned for success in any market environment.
We are pleased with the quality of PE1’s underlying portfolio and believe that our disciplined build out of a well-diversified portfolio of private equity investments should enable PE1 to achieve its NAV-based investment objective. Coupled with our ongoing buyback initiative, unitholders are also well-placed to benefit from NAV accretion and an increase in the ASX unit price.
