PRIVATE EQUITY

PRIVATE EQUITY 

 

Ownership or interest in a company that is not publicly listed. It is often a direct investment into a company to gain significant control and influence over the company’s operations.

 

TYPES OF PRIVATE EQUITY FUND MANAGERS 

  1. Leveraged Buyout

  2. Venture Capital (early stage companies)

  3. Growth Capital (late stage venture companies)

  4. Real Estate

  5. Infrastructure

  6. Fund of Funds

  7. Co-Investment

  8. Distressed PE

  9. Secondaries

WHY INVEST IN PRIVATE EQUITY?

 

Over a ten-year period, private equity has outperformed traditional public equity markets and has been used to diversify portfolio risk. Historically investors have seen a return of 4-5% in excess of public equities over the long term.

 

INVESTING IN PRIVATE EQUITY; JP MORGAN ASSET MANAGEMENT

https://am.jpmorgan.com/blobcontent/1383531120699/83456/PI_PE_INVESTING.pdf

 

TYPES OF INSTITUTIONAL INVESTORS 

 

Public Pension Funds (43%)

Asset Manager (13%)

Insurance Companies (13%)

Sovereign Wealth Funds (7%)

Endowments (5%)

Other Institutions Include: Private Pensions, Foundations, Banks, Family offices

 

LEADING PE LPS

  1. CPP Investment Board (Public Pension) Toronto, Canada – AUM 281Bn

  2. ADIA (Sovereign Wealth Fund) Abu Dhabi, UAE – AUM 792Bn

  3. GIC (Sovereign Wealth Fund) Singapore – AUM 350Bn

  4. CalPERS (Public Pension) Sacramento, US – AUM 305Bn

  5. APG (Asset Manager) Heerlen, Nertherlands – AUM 432Bn

  6. Ontario Teachers Pension Plan (Public Pension) Toronto, Canada – AUM 124Bn

  7. CDPQ (Public Pension) Montreal, Canada – AUM 188Bn

  8. Washington State Investment Board (Public Pension) Olympia, US – AUM 84Bn

  9. National Pension Service (Public Pension) Seoul, South Korea – AUM 461Bn

  10. CalSTRS (Public Pension) Sacramento, US – AUM 192Bn

  11. John Hancock (Asset Manager) Boston, US – AUM 400Bn

  12. Teacher Retirement System of Texas (Public Pension) Austin, US – AUM 133Bn

  13. New York State Common (Public Pension) Albany, US – AUM 179Bn

  14. Oregon State Treasury (Public Pension) Salem, US – AUM 70Bn

  15. TIAA (Private Pension) New York, US – AUM 889Bn

 

PREQIN SPECIAL REPORT: THE PRIVATE EQUITY TOP 100

https://docs.preqin.com/reports/Preqin-Special-Report-The-Private-Equity-Top-100-February-2017.pdf

 

STATE OF PRIVATE EQUITY FUNDRAISING 

PRIVATE EQUITY SHATTERS POST-CRISIS RECORD; Private Equity International

https://www.privateequityinternational.com/download-2019-fundraising-shatters-post-crisis-record/

 

US PRIVATE EQUITY FUNDRAISING SWELLS; Reuters

https://www.reuters.com/article/us-fundraising-privateequity/u-s-private-equity-fundraising-swells-as-mega-funds-get-bigger-idUSKBN1WP1DE

 

WHY PE FUNDRAISING IS FOCUSED ON MIDDLE-MARKET; Generational Equity

https://www.genequityco.com/insights/why-private-equity-fundraising-is-focused-on-middle-market-businesses

 

ARTICLES OF INTEREST ON PRIVATE EQUITY 

PRIVATE EQUITY IS STARTING 2020 WITH MORE CASH THAN EVER; Bloomberg

https://www.bloomberg.com/news/articles/2020-01-02/private-equity-is-starting-2020-with-more-cash-than-ever-before

 

THE PRIVATE EQUITY MARKET IN 2019; iCapital Network

https://www.icapitalnetwork.com/insights/private-equity/the-private-equity-market-in-2019/