Sentiment at last week’s IPEM conference in Paris was a lot more positive than in the past few years.
Diaries were noticeably busier at Europe’s flagship gathering for private markets professionals, with many GPs and LPs filling their schedules right up to the end of Friday afternoon.
Now that everyone has come to terms with the fact that fundraising takes longer, the mood is one of cautious optimism as the market starts to regain its momentum.
Our five key takeaways are:
- Money attracts money: GP scale clearly commands a premium, with inevitable consolidation ahead in what remains a very fragmented market. LPs continue to look for size and brand.
- Platform is more than just a buzzword: Beyond scale, LPs are increasingly looking for multi-specialist platforms which can offer a broad spectrum of high-quality, targeted products
- Retail sales: Retail capital stands out as the key prize, still largely under-addressed in Europe despite its depth
- DPI is still the new IRR: LPs have been starved of distributions for 3 years in private equity – the pressure grows on GPs to accelerate portfolio company exits
- No one wants to be JAMBO: With so many GPs currently raising funds, there is a real risk of investor fatigue. It’s more important than ever to stand out from the crowd. Buyout strategies are firmly back in the market – it is crucial not to be seen as Just Another Mid BuyOut
