Paceline Equity Partners ’s Post

Chicago is home to several of the best middle-market private equity fund managers in the world and Wynnchurch Capital, L.P. is amongst those leaders. Congratulations on the $3.5 billion raise of Wynnchurch Capital, L.P.'s sixth fund, over the target of $3.0 billion! Disciplined private markets fund managers with proven track records across market cycles will continue to be differentiated amongst the plethora of fund managers and supported by limited partners. Wynnchurch Capital, L.P. has been successfully investing in middle market companies for twenty-five years and has closed six private equity funds since its founding in 1999. Fund VI investors include: state pension funds, sovereign wealth funds, endowments, insurance companies, corporate pension plans, investment advisors and family offices from around the globe. #fundraising #chicago #fundmanagers #privateequity #middlemarket #limitedpartners #alternativeinvestments #privatemarkets #midwest #capitalmarkets #institutionalinvestors #pensionfunds #insurancecompanies #allocators #trackrecord

The Fidelity Magellan Fund returned 29% annually over 13 years, yet the average investor in the fund lost money!? This sounds far fetched, but this was indeed the case for the fund from 1977 to 1990, whilst overseen by legendary investor Peter Lynch. The average investor sold at the dip, and bought at the peak - losing money at the exact worst times. Lesson #1: take the time to understand your circumstances, and put an investment plan together that reflects this. Lesson #2: stick to it - from peak to trough. #investing #peterlynch #primewealth

As the saying goes, it’s always darkest before the dawn. And that may be especially true of first time private equity fund managers. It has become tougher to raise money, but first time managers may be set to rake in oversized returns. #privateequity #investments

Some of the most influential investors are giving the world’s largest private equity firms a message: if you want money for your next fund, here’s our list of demands. Sovereign wealth funds and state pension providers are among investors telling money managers they’ll only commit in their upcoming fund raises if their capital tied up in old funds is released, according to people with knowledge of the matter. https://lnkd.in/gcJMj2TD #large #backers #privateequity #asking #funds #release #demand #sovereignwealthfunds #statepension #providers #investors #telling #moneymanagers #commitments #upcoming #fundraising #rounds

Yesterday, the SEC passed new rules to provide more transparency and accountability on private funds like Private Equity and Venture Capital funds. Two of the big changes are requiring detailed quarterly reporting (mainly around financials) and an annual audit. This is a smart move and hopefully foreshadows more oversight. Even as a very small fund we've been doing both of these since day one at Connetic Ventures (shout out Brad Zapp, CFP®) and I personally wouldn't be an LP in a fund that doesn't have this. While the audit brings extra expense, which hurts GPs of small funds, this should be table stakes in you want to be a fiduciary and manage other people's money. I've discussed valuation and reporting with 40+ VCs (including discussing book value of shared portfolio companies) and the differences would blow your mind. VC is still a young asset class and will mature over time, this is a good first step. The next big shift will likely be a move away from the 2/20 private model to a single management fee public model (SEC registered products) like other asset classes. LPs will likely drive this transition.

As we highlighted yesterday, private markets fundraising has come under pressure since last year. Although secondaries funds are raising with impressive momentum so far in 2023, other strategies have slowed. [https://lnkd.in/gS2MtjZv] The Financial Times got an early look at Preqin’s latest data, revealing that alternative funds—encompassing private equity, hedge funds, real estate, and private credit—have raised $740bn since the year's start, down 27% from the $1.02trn recorded during the same period last year. Drew Schardt, head of investment strategy at Hamilton Lane, a key player in private markets, told the FT that the past 12 months of fundraising have been more challenging than at any time in the last 15 years. He cited market volatility, geopolitical tensions, and fluctuating interest rates among the factors that have dampened investor appetite. Alex Blostein, an analyst at Goldman Sachs, told the paper that “it is taking longer for existing raises to get done and it will take firms longer to come back to market with their next vintage”.  This supports data published by Pitchbook showing the median time spent on the road by funds that closed in H1 this year was 13.6 months. This is the highest mark since 2010, when the median fund took 15.3 months to reach a final close. Strong fundraising in 2021 and 2022 combined with last year’s stock market rout left many investors running over their self-imposed allocation targets to alternative assets like private equity. That over-allocation also means the secondary market is seeing solid volume as LPs seek liquidity and actively rebalance their portfolios, as noted in a recent Pantheon Ventures report we shared. [https://lnkd.in/gmD4iHZZ] Read the Financial Times article for more: https://lnkd.in/ebZNkVHS #privateequity #privatecapital #alternativeinvestments #secondaries

We are pleased to share our recent white paper on how continuation fund strategies offer a differentiated value proposition for private equity investors. Learn more with David Guryn, Senior Investment Director Private Equity. Read the full article below. #PrivateMarkets #PrivateEquity #ContinuationFunds #Secondaries #GPLeds Professional investors only. Capital at risk.

NFG Announces Strategic Investment Into Zodiac Partners Ltd LONDON, UK / ACCESSWIRE / January 23, 2024 / NFG Sarl ("NFG"), a global diversified private investment holding company announced today that its subsidiary, NFG Partners SA ("NFG Partners") has entered into an agreement to acquire a minority equity stake in Zodiac Partners Ltd. ("Zodiac"), a United Kingdom based securities broker and wealth manager. This strategic investment marks a significant milestone for both companies and sets the stage for a synergistic partnership that will enrich their product offerings and elevate the overall client experience. The collaboration aims to take advantage of the recent financial services trade deal between Switzerland and the UK. By leveraging their combined, services, expertise, and market insights, the two firms aim to create a strategic alliance that will redefine the landscape of wealth management for their respective clients. Zodiac, founded in 2017 by Christopher Panayiotou and Wayne Davis CFA, specializes in providing trading, pension fund management and institutional dealing creating a one stop investment house for the professional investor. NFG Partners is a Geneva-based asset and wealth management firm regulated by FINMA servicing corporate, family offices, UNWI and institutional clients including its parent, NFG. The agreement allows NFG Partners to increase its equity stake over time subject to regulatory approvals. As part of the agreement, in addition to providing working and expansion capital, Mr. Zameer Manji, Managing Director of NFG Partners, shall join the board of Zodiac Partners and a new Chief Legal Officer and Chief Operating Officer have been identified, and shall be appointed following regulatory approval, further strengthening the Zodiac team, from a legal, compliance and operational perspective. Mr. Manji expressed enthusiasm about the collaboration, stating, "This strategic investment aligns perfectly with our vision for growth and commitment to delivering exceptional value to our clients. We are excited about the opportunities that this partnership brings and believe that it will further strengthen our position in the wealth management industry." Mr. Wayne Davis, Co-Founder of Zodiac, added, "We are pleased to welcome NFG Partners SA as a strategic investor. This tie-up in particular enhances our discretionary management offering, benefitting from their systematic investment approach. By joining forces, we are well-positioned to offer an even more comprehensive suite of services to our clients." The conclusion of the overall transaction is subject to FCA regulatory approvals and customary closing conditions. www.nfgsarl.ch www.nfgpartners.ch www.zodiacpartners.co.uk https://lnkd.in/egD3dCsv

𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗙𝗹𝗮𝘀𝗵: - 𝗔𝗾𝘂𝗶𝗹𝗶𝗻𝗲 𝗥𝗮𝗶𝘀𝗲𝘀 𝗢𝘃𝗲𝗿 $𝟯.𝟰 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗼𝗳 𝗙𝘂𝗻𝗱 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗗𝗮𝘁𝗲: - 𝟬𝟳.𝟬𝟲.𝟮𝟬𝟮𝟰 𝗜͟𝗻͟𝘁͟𝗿͟𝗼͟𝗱͟𝘂͟𝗰͟𝘁͟𝗶͟𝗼͟𝗻͟:͟ • Aquiline Financial Services Fund V L.P. (AFS V) raised over $2.3 billion, the firm’s largest fund to date. • The fund received strong support from existing and first-time investors across the U.S., Europe, the Middle East, and Asia. • The Continuation Fund secured approximately $1.1 billion, led by HarbourVest Partners, with contributions from StepStone, Ares Management, and Commonfund. • The Continuation Fund will acquire select portfolio companies from Aquiline Financial Services Fund II and III, offering existing limited partners options to reinvest or receive liquidity. 𝗞͟𝗲͟𝘆͟ ͟𝗣͟𝗼͟𝗶͟𝗻͟𝘁͟𝘀͟:͟ • AFS V raised over $2.3 billion, making it Aquiline’s largest fund to date. • The fund received strong backing from existing investors such as financial institutions, sovereign wealth funds, public pension funds, funds of funds, and family offices, and attracted first-time commitments from investors in the U.S., Europe, the Middle East, and Asia. • The Continuation Fund secured approximately $1.1 billion, with HarbourVest Partners leading the investment. Additional participation came from StepStone, funds managed by Ares Management, and Commonfund’s CF Private Equity business. • The Continuation Fund is designed to acquire select portfolio companies from Aquiline Financial Services Fund II and III. It offers existing limited partners the option to roll their investment on status quo terms, reinvest in the Continuation Fund, or opt for full liquidity. • Aquiline Capital Partners specializes in financial services and related technologies, managing approximately $10.4 billion in assets as of March 31, 2024. 𝗖͟𝗼͟𝗻͟𝗰͟𝗹͟𝘂͟𝘀͟𝗶͟𝗼͟𝗻͟:͟ • Aquiline Financial Services Fund V (AFS V) raised over $2.3 billion, the firm’s largest fund to date. • The fund attracted commitments from existing and new investors across the U.S., Europe, the Middle East, and Asia. • Secured approximately $1.1 billion, led by HarbourVest Partners, with contributions from StepStone, Ares Management, and Commonfund. • The firm manages approximately $10.4 billion in assets as of March 31, 2024. • This capital raise highlights Aquiline's robust investor backing and strategic expansion in financial services and technology. 𝐅𝐨𝐥𝐥𝐨𝐰 Corporate Valuations 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞 𝐬𝐮𝐜𝐡 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 #Finance #Investment #AquilineCapital #Fundraising #PrivateEquity #FinancialServices #GlobalInvestors #FinancialTechnology #CapitalMarkets #InvestmentFunds #GlobalEconomy #valuations #Startup #BusinessNews #BusinessValuation

In recent years, private capital managers began a push beyond family offices into the wealthy individual channel. In early January, Blackstone raised $1.3 billion for its first PE fund for high-net-worth individuals. Last year, Apollo Global Management, Inc. launched two semi-liquid products for wealthy investors—one focused on PE and the other on private credit. The growing relevance of these #evergreen, semi-liquid products has sparked some concerns for individual and institutional investors alike. 1. My first story looks at the risk of cherry-picking--—when asset managers select more profitable deals for larger institutional funds and leave the “leftovers” to individual investors. Read the full story here: https://lnkd.in/ebZJFC42 2. The second and most recent story looks at a potential "crowding-out effect" that could push institutional investors out of co-investment opportunities. Read it here: https://lnkd.in/eWq72dMH