Capital Dynamics

[#Award] We are excited to have been shortlisted for the “Best Energy Transition Fund” at the inspiratia Awards. Stay tuned for updates! Barney Coles Dario Bertagna #EnergyTransition #InspiratiaAwards #CleanEnergy #Solar #Wind

[#ThoughtLeadership] chene yvan, Managing Director, Secondaries, is featured in the latest “2024 Secondaries Report” from Investec. On continuation funds, he stated: “As secondaries managers, we strive to provide liquidity and value for our investors. Continuation funds are a powerful tool in achieving this. They allow managers to offer an exit and liquidity to current LPs while continuing to hold and manage high-quality assets that are difficult to source. For LPs, it provides the option to take liquidity or maintain exposure to these trophy assets. Continuation fund deals are delivering buyout-like returns at lower risk.” The secondaries market continues to show resilience and innovation, and we are excited to see its growth and potential in 2024 and beyond! #PrivateEquity #Secondaries #Investments #Liquidity #Value

[#Conferences] Capital Dynamics at IPEM Paris Conference! We are delighted to attend the IPEM Paris conference from September 9-11. We invite you to visit our booth at Level 2, H211, to connect with our team and discuss the latest trends in private equity and clean energy. Don't miss the opportunity to join our panels featuring our esteemed colleagues: - chene yvan Chene, Managing Director, Secondaries, will join a panel on “Secondaries Valuations” on September 11 at 10:30 AM - Andrew Bernstein, Senior Managing Director, Head of Private Equity, will contribute to the panel titled "How the 2020s Vintage will be Remembered?" on September 11 at 11:00 AM. We look forward to engaging with you and sharing insights at this premier event. See you in Paris! #IPEM #PrivateEquity #Networking #Conferences #Finance

[#PressRelease] We are pleased to announce that our Clean Energy business has successfully acquired a 100% equity stake in six solar photovoltaic (PV) assets in Spain, totalling approximately 317 MWp. These acquisitions mark a significant milestone in our growth and commitment to driving energy transition. The assets, located in Andalucía and Aragon, have entered Pay-as-Produced (“PaP”) power purchase agreements with an S&P 500 company. With these additions, we are expanding our Spanish solar footprint to nearly 1GWp of capacity.   For more details, please read the full announcement on our website.   Dario Bertagna #CleanEnergy #Renewables #SolarPV #TrulyInvested #PrivateAssets

🚀 [#SolutionsToSuccess] 🚀 Welcome to our July edition of #SolutionsToSuccess! This month, we are diving into the average invested cash of private equity funds in the U.S. and in Europe. When committing to a private equity fund, it’s generally expected that the full committed amount will be called. However, the scenario changes when distributions come into play.   We have plotted the cumulative net invested capital for vintages between 1993 and 2023. Both European and U.S. buyout funds see their net invested cash peak at around 60% of the commitment, as distributions occur before the full committed capital is called. Interestingly, newer vintages behave similarly to older ones, despite the increased use of liquidity facilities. Top-performing funds show a slightly lower peak, aligning with expectations since a strong IRR is often linked to early distributions.   For investors looking to deploy capital in private markets, it’s crucial to consider that net invested cash peaks at around 60%. To maximize invested capital, an overcommitment strategy is advisable. Private equity funds of funds typically use a 15% to 20% over-commitment approach, minimizing the risk of calls from underlying funds exceeding open commitments. More aggressive over-commitment strategies bring funding risk, which can be managed with tools like cash flow simulations considering extreme market conditions.   We look forward to your thoughts and questions on this topic! Philippe Jost, PhD #TrulyInvested #PrivateAssets

[#AnnualInvestorMeeting] We want to extend our heartfelt thanks to everyone who joined us for our DACH Annual Investor Meeting last week! It was fantastic to connect with all of you and spend real quality time together. We truly appreciate your continued support and trust! Thank you once again for your commitment and partnership. Here's to many more successful years of close collaboration! 🚀   *** Wir möchten uns ganz herzlich bei allen Investoren bedanken, die letzte Woche an unserem DACH Annual Investor Meeting teilgenommen haben! Es war uns eine besondere Freude, diese inhaltlich wertvolle Zeit mit Ihnen zu verbringen. Wir wissen Ihre Unterstützung und Ihr Vertrauen sehr zu schätzen. Vielen Dank für die erfolgreiche Zusammenarbeit und wertvolle Partnerschaft bisher und in Zukunft! 🚀

[#NewJoiners] We are delighted to welcome Bennett Tiedy as Analyst in our Business Development team at the New York office. A warm welcome to Capital Dynamics, Bennett, we are happy to have you join us!   #TrulyInvested #OneTeam

[#Events] Thank you to our esteemed investors, GPs, and business partners for joining us at our Drinks Reception during #SuperReturn. It was a pleasure connecting with you, sharing insights, and engaging in such enjoyable conversations! Please reach out to the team Martin Hahn, Oliver Schumann, Mauro Pfister, Klaus Gierling and Markus Langner to connect this week.   #TrulyInvested #PrivateAssets #StrongPartnershipsMatter

[#Article] We are pleased to share that Mauro Pfister, Managing Director on our Secondaries team, was recently featured in “Mergers & Acquisitions”! He shared interesting insights alongside other industry experts on the topic of long-hold funds vs. GP-led secondaries. A decade ago, long-hold funds were the talk of the private equity sector, offering more flexibility in exit timing compared to traditional 10-year closed-end funds. However, the rise of GP-led secondaries has since taken center stage. “It’s not just about the liquidity,” he explains. “LPs place great importance on relationships when they invest with a specific GP. However, over such a long period, the team may undergo significant changes. The macroeconomic environment may also shift dramatically, and the LPs’ own investment strategies may evolve as well.” Check out the full article, “Long-Hold Funds vs. Secondaries: Who Wins?” on our website: Mergers & Acquisitions: Long-Hold Funds vs. Secondaries: Who Wins? | Capital Dynamics (capdyn.com) #PrivateEquity #PrivateAssets #Secondaries #TrulyInvested 

🚀 [#SolutionsToSuccess] 🚀   Welcome to the second edition of #SolutionsToSuccess! Today, we want to dive into the topic of Benchmarking and its critical role in validating investment strategies.   Benchmarking compares the performance of an investment to a suitable alternative, and in private equity, this often means assessing a fund's performance against a public equity index. The unique cash flow patterns in private equity present challenges for benchmarking, leading to the development of various methods by academics and industry professionals.   At Capital Dynamics, we have been at the forefront of this effort with our development of PME+ (Public Market Equivalent Plus). PME+ addresses the limitations of traditional PME, particularly its mathematical issues with well-performing funds or during poor public market conditions. By scaling distributions by a factor lambda, PME+ ensures that the final private and public NAVs are equivalent, allowing for a consistent and meaningful comparison between private equity portfolios and the public market.   Given the frequent requests for guidance on implementing Capital Dynamics PME+, we have prepared an example available for download on our website: Private equity benchmarking with Capital Dynamics PME+ | Capital Dynamics (capdyn.com) Additionally, Philippe Jost, PhD will be presenting a detailed demonstration of PME+ computation during his session today, part of the “Applications of the PME Benchmarking Method Live Online Classroom Training” organized by Invest Europe. For more information on this training, please visit: Applications of the PME Benchmarking Method | Invest Europe   Looking forward to your thoughts and questions on this topic! #TrulyInvested #PrivateAssets