Bloom Equity Partners’ Post

The long awaited 2024 Bain Capital Global Private Equity Report just dropped. In this edition of the Bi-Weekly Bloom newsletter, the Bloom Equity Partners team unpack Bain's reflections and forecasts on the current volatile deal making environment, particularly through the lens of software acquirers and the technology sector at large. Sidebar - it's humbling to me that our team's perspectives are now trusted to make it into the inboxes of nearly 10,000 industry professionals twice a month. If you are interested in Technology M&A, Lower-Middle Market PE, or Software Company Building, I encourage you to take a read & sign up → https://lnkd.in/gmAqnhZh

Industry Evolution Continues: Building upon yesterday's discussion, the winds of change in the private equity industry are gaining momentum. Recent data points to a potential consolidation trend, with mega managers emerging as dominant players. In light of this shift, the question becomes even more critical: For my fellow professionals: What do you think about the evolving dynamics in the private equity landscape? The challenges and opportunities presented by consolidation can't be ignored. It's a moment for introspection, adaptation, and innovation. Let's share our thoughts and insights on how to thrive in this evolving environment. #PrivateEquity #IndustryInsights #Adaptation

🚀 Thriving in Private Equity Amid Uncertainty 🔄 Private equity confronts unprecedented challenges, urging us to adapt. Here are vital strategies for deal assessment and portfolio management in this dynamic environment: 🧩 Categorize: Sort investments based on market resilience and financial strength. Four groups emerge: ·      Survivors, facing severe impacts, require immediate attention. ·      Defenders, enduring major disruptions, expect ongoing challenges. ·      Bloomers, short-term impacted but aligned with long-term trends. ·      Capitalizers, with moderate-to-positive short-term impacts, poised for long-term success. 🎯 Prioritize: Emphasize downside protection, resilient cash flows, and value enhancement. Seek firms weathering economic storms and offering growth opportunities. 🔧 Leverage Levers: Coach portfolio companies to build cash balances. Accelerate revenues, optimize costs, align pricing, and maximize customer value management. 🤝 Invest in People: Develop skills in your team and portfolio companies. Human capital is a key success factor. At Cadence Growth Capital (CGC) we understand the shifting priorities when approaching potential investments and helping portfolio companies during uncertain times. We act and adapt always focused on long-term success. 👏🏻 Sebastian F Eiseler Maximilian Hofert #PrivateEquity #AdaptationStrategies #ThrivingInChange

What does years of McKinsey & Company Global Private Markets Review have to tell us about #privateequity and #venturecapital? 2024: Private markets in a slower era 📉 2023: Private markets turn down the volume 📉 2022: Private markets rally to new heights 📈 2021: A year of disruption in the private markets 📈 2020: A new decade for private markets 📈 2019: Private markets come of age 📈 2018: The rise and rise of private markets 📈 2017: A routinely exceptional year 📈 2016: The Private-Market Investing Revolution 📈 > Up 📈 and down📉. And what next? Up again sometime soon? 📈📈📈 #venturecapital #privateequity #slowerera #whatnext? https://lnkd.in/e3BiHEci

🔍 𝐃𝐢𝐯𝐢𝐧𝐠 𝐈𝐧𝐭𝐨 𝐭𝐡𝐞 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞: 𝐓𝐡𝐞 2024 𝐆𝐥𝐨𝐛𝐚𝐥 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 & 𝐓𝐡𝐞 𝐑𝐢𝐬𝐞 𝐨𝐟 𝐒𝐞𝐜𝐨𝐧𝐝𝐚𝐫𝐲 𝐅𝐮𝐧𝐝𝐬 The latest "Global Private Equity Report 2024" by Bain & Company sheds light on the current state and future prospects of the private equity (PE) sector. Amidst a challenging landscape, one solution stands out for its growth and potential: secondary funds. Here's what you need to know: 🌍 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐭𝐡𝐞 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐢𝐧 2023: 𝐀 𝐘𝐞𝐚𝐫 𝐨𝐟 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 ▪ Deal value plummeted by 37%, and exit value decreased even more significantly by 44%. ▪ Fund-raising across private capital saw a downturn, with 38% fewer buyout funds closing, despite a surge in dollar commitments to buyouts. ▪ A notable 525-basis-point increase in US central bank rates from March 2022 to July 2023 introduced a pause across the market. 𝐓𝐡𝐞 𝐏𝐫𝐨𝐛𝐥𝐞𝐦: 𝐀 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐂𝐫𝐮𝐧𝐜𝐡 ▪ A staggering $3.2 trillion in unrealized value across 28,000 unsold companies highlights a profound liquidity challenge. ▪ The traditional exit and liquidity avenues have narrowed, necessitating innovative solutions. 𝐓𝐡𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧: 𝐒𝐞𝐜𝐨𝐧𝐝𝐚𝐫𝐲 𝐅𝐮𝐧𝐝𝐬 🚀 Rapid Growth: Secondary funds saw a 92% increase in capital raised in 2023, signaling their vital role in liquidity solutions. 💡 Innovation and Potential: Providing about $120 billion in annual liquidity from a total industry AUM of over $20 trillion, secondary funds represent a growing, albeit currently small, portion of the market with exponential growth potential. 🛠️ Addressing the Liquidity Challenge: With over $3.2 trillion in unrealized value tied up, the growth of secondary funds is propelled by the pressing need for liquidity in the market. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: ▪ Secondary funds are not just surviving; they're thriving, offering a beacon of hope for liquidity in a constrained market. ▪ Their innovative structures and solutions have positioned them as essential tools for managing the current liquidity crunch and shaping the future of private equity. ▪ As the market evolves, secondary funds are poised for exponential growth, making them an area to watch and engage with for investors and industry stakeholders alike. The "Global Private Equity Report 2024" offers a comprehensive analysis and highlights the pivotal role of secondary funds. As we navigate these challenging times, it's clear that innovation and adaptability will drive the future of private equity. You can read the full report here: https://lnkd.in/egKizkJW #PrivateEquity #SecondaryFunds #InvestmentTrends #BainAndCompany #MarketInsights #LiquiditySolutions #FinancialInnovation

Bain notes “Nearly all the value creation between 2012 and 2022 has been attributable to revenue growth and multiple expansion. Margin expansion barely registers" Operational, tech, and financial levers (primarily driving margin) are the standards when PE firms address value creation. Organic growth (marketing and sales) is rarely considered a viable lever for smaller PE firms to pull as they assess portfolio development. However larger firms like KKR, Blackstone and Apollo are pursuing this approach with full force. Mid-market private equity firms should start integrating comprehensive organic value creation into their VCPs (value creation planning) immediately, especially as they are reset in Q1 of 2024.

The private equity industry in the United States is known for its dynamism and resilience. As we step into 2023, private equity firms face a unique set of priorities shaped by evolving market trends and regulatory changes. In this blog post, we will explore the top three priorities for private equity in the United States in 2023.

The private equity industry is constantly evolving, and with record levels of capital and a competitive deal flow, 2024 is shaping up to be no different. Here are the trends you need to know. #PrivateEquity

The private equity industry is constantly evolving, and with record levels of capital and a competitive deal flow, 2024 is shaping up to be no different. Here are the trends you need to know. #PrivateEquity

The private equity industry is constantly evolving, and with record levels of capital and a competitive deal flow, 2024 is shaping up to be no different. Here are the trends you need to know. #PrivateEquity