Sanjeev Krishnan

#Private_equity #boom Private equity has had quite a boom over the last couple of decades. Here are some stats: The number of private equity firms has grown from just 24 in 1980 to 17,000 in the U.S. alone today. In 2000, the global private equity market was $579 billion. Today it’s over $8 trillion. We’ve reported on how private equity firms have bought up companies in everything from nursing homes to restaurants and real estate. But is there trouble ahead for private equity? Jared Dillian, a financial author and trader, has been looking into private equity, and he does not like what he sees. His new report is called “The Next Big Short: Hidden Risks Behind Private Equity’s $8 Trillion Market.” Dillian discussed his views on the industry with “Marketplace Morning Report” host David Brancaccio. The following is an edited transcript of their conversation. https://lnkd.in/dGG3D3-U

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#PE Sentiment among PE dealmakers rose in Q1 due to more macro clarity, increased visibility into interest rates and a perceived valuation gap. Though tech still dominates sectors, its investment percentage of total deployment dipped slightly in the last 12 months. Rising activity in coming quarters will be boosted by greater availability of financing. https://lnkd.in/dNY7zD2E

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#orion #Sweetwater_Royalties Orion Resource Partners, a global investment firm specialising in metals and materials, has sold an 8% minority interest in Sweetwater Royalties, a private industrial minerals royalty company, to a Canadian pension fund for $100m. The transaction implies an approximately $1.9bn enterprise value for 100% of Sweetwater Royalties, with Orion retaining a 67% majority ownership share in the asset, having sold a 25% stake to Ontario Teachers’ Pension Plan in March 2023 for approximately $220m. https://lnkd.in/gkKMP3Tr

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Key Investment Highlights from The Seraphim Space Index Q2 2024 🌌 Let's take a closer look at the key highlights from the latest quarter: 💰 $8.5bn invested in TTM to Q2 2024 👩‍💻 174 deals in Q2 2024 🛰 $2.4bn invested in Q2 2024 🤝 385 deals in Q2 2024 compared to 320 in Q1 2024 🚀 Space Pioneer closed the biggest deal of $208m in Q2 2024 💲 Average deal size is $18m ◾ Median deal size is $5m in Q2 2024 Check out the full Index here - https://lnkd.in/d-vf-mVN

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#KKR Markets go up and down, trends come and go, and luck can change. But when it comes to creating value in a portfolio company, we have developed repeatable processes that help us make our own luck. Our formula includes industry-specific playbooks for capturing upside, mitigating downside, and unlocking step changes in performance within our portfolio companies. Fundamental to our approach is using our toolkits and experience to support operational improvement in our investments. https://lnkd.in/ddsYp2ZH

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Why the power law is not so all powerful in VC. Everyone has seen hundreds of takes on why the “power law” should be one of “the investors’ commandments”... Here are my thoughts on why it should not the only way! Disagree? Let me know! https://lnkd.in/eHRzQast

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“About every ten years we face some financial crisis or reckoning, during which around 20% of the GPs fail to re-raise another fund” per Bain & Co’s private equity practice. Investors are growing restless, and the increasing pressure to return their capital is creating a critical juncture for many general partners. Distributions, the return of capital to investors, are at their lowest in over a decade. Early data for 2024 suggests a bleak outlook, with the year on track to be the second-worst for exit value since 2016. Private equity's business model depends on a continuous cycle: raising money to make acquisitions, exiting via sales or initial public offerings, and then returning capital to investors. When one part of this cycle stalls, it risks disrupting the entire system. This situation is putting a strain on pension funds, endowments, and other investors, known as limited partners. Cash-strapped, these investors are hesitant to commit to future funds without seeing current returns. And at the SuperReturn conference more general partners attended than limited partners! #privateequity #privatecapital #privatemarkets #pe #vc #growthequity #institutionalinvestor #liquidity #sponsor #limitedpartner #generalpartner #superreturn #distribution #m&a #realization

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