SmithNovak’s Post

🕶️ “The sun is out, the grill is hot, and the pool is luke…” 🔥 GP Stakes sizzle as activity picks up 🥩 M&A at 2022 already at levels 🥩 Control transactions 45% of total deal count, highest in 10yrs lead by TPG / Angelo Gordon $2.7B deal 🥩 Blue Owl Capital’s GP stake in $55.7B AUM infrastructure specialist Stonepeak topped minority transactions Source: PitchBook Data Q223 #gpstakes #gpstaking #privateequity #privatedebt #alternativeinvestments

Coming up we have "GPS for Alpha: Investing on a Global Basis". 🌎 In this panel, Adam Lowensteiner, Vice President at Lytham Partners is joined by Jake Barfield, Managing Partner at Asheville Capital Management and Doug (Douglas S.) Weiss, Principal & Managing Member at DSW Investment, LLC to discuss the pros and cons of investing on a global basis, what to look for, and how this differs with #SmallCap and #MicroCap markets. ⏯ Watch here: https://lnkd.in/gdwsWSMc #GlobalInvesting #Alpha #Investors #InvestingOverseas

What does the future hold for GP Stakes? Co-President & Head of GP Strategic Capital Michael Rees spoke with Private Equity International about the factors that contributed to the formation of the asset class and its continued growth today. Learn below how our scale, focus and value-accreditive proposition helps enable our platform to capitalize on this growing opportunity. https://lnkd.in/g65tFgRj

A big process moving toward close: Vestar Capital Partners is running a #privateequity single-asset secondary process on its minority stake in Circana, which is also backed by New Mountain Capital and Hellman & Friedman. The deal is in the range of $1.2bn, and has investors. Evercore and Jefferies are advising on the process. GP-led deals represented about 44% of the approximately $109b in total volume last year, with single-asset transactions representing the majority of such deals, according to Lazard. “We believe that the second-half volume in 2023 is a harbinger of a new, elevated normal for the GP-led segment,” Holcombe Green, Lazard's global head of private market advisory, said in the survey. Read more here on Buyouts: https://lnkd.in/eVJSTTMP

Blue Owl / GP stakes: The document attached below is worth a read. The only part I’d add to would be the “innovations in the industry” question at the end, where the answer is very much addressed at the large cap space. For me, the biggest innovation is the overall development of the concept of often highly structured GP solutions. GP stakes are one of a number of grades of variation between NAV lending, pref equity and diversification of ownership of management companies. A lot of the innovation I see happening is around smaller GPs with less AUM who are seeking GP finance for specific situations. #gpstakes

Virtus partner, Westchester Capital Management’s Co-CIO Roy Behren discusses several announced deals, the likelihood of them closing and which deals are among the best bets in this Seeking Alpha article. Read more - https://ow.ly/jy1x50QL0uj

What carry % is market for direct deals? McGuireWoods LLP data suggests that 61% of all direct deals used tiered carry structures. For processes with "straight carry" i.e. no tiering, 20-25% carry is by far and away the most common, in 58% of cases. #directdeals #fundlesssponsor #independentsponsor #privateequity #pe #venturecapital #vc #alternatives Ternion

- W H I T E P A P E R - 🥩 GP Stakes: A New Path to Private Equity - by Christopher Zook, Founder & CIO, CAZ Investments 👀 An educational look into the asset class of Private Market GP Stakes. #GPStakes #RealAssets #PrivateCredit #PrivateEquity #PrivateMarkets #AlternativeInvestments #ThematicInvestmenting

GP staking is an umbrella term – here are the shades of grey. 🌳 GP staking Investments made by the likes of Blue Owl Capital, Petershill, Blackstone into the largest asset managers are fundamentally the acquisition of a stream of cash flows. The ability to buy well is driven primarily by the value at which the staker acquires those cash flows – enterprise value growth will be a factor, but the ability of a $30-40B AUM firm to double or triple its AUM is difficult to underwrite and for external investors, hard to directly influence. It is less common for such stakes to include material commitments to underlying funds. 🌳 GP growth equity Investors such as Bonaccord Capital Partners and Hunter Point Capital LP take growth equity stakes, still minority equity, into managers with $1-10B of AUM are seeking to value the potential for an existing stream of cash flows to the management company to grow over time, through a combination of carried interest, but also the growth of AUM and related management fees. Investments will often take the form of management company and fund-level commitments. Target managers benefit from capital invested into the management company to launch new strategies, as well as fund-level capital to turbo-charge an upcoming fundraise process. It is important that investors can support managers with a combination of capital, but also distribution support, as many firms of this scale will be growing IR and capital raising functions, and will benefit from the network of the investing firm. 🌳 GP seeding Ternion has seen a significant growth in GP seed constructs. Capital can be invested across both equity and debt, usually with large amounts of structure. The most significant driver of returns for seed investments are carried interest share and enterprise value growth of any equity invested in the target firm. The ability for a newly seeded firm to double or triple AUM may only be 2-3 direct deals away, but the investing firm will not benefit from a stream of cash flows on day 1 – just the potential to share in the upside from future investments and management fees. Market participants include GP House, Grafine Partners. #gpstaking #gpseeding #privatemarkets #privateequity #alternatives #emergingmanagers GP Stakes News GP Staker British Emerging Manager Institute (BEMI)

M&G Platform up for sale Numerous Sandringham Advisors recently received their ultimate payout after the acquisition by M&G. However, amidst the departure of three prominent leaders since last May and the current listing of the platform for sale, the future appears uncertain. OR are these positive moves ? I would welcome conversations with Ex Sandringham Advisors to gain more inside knowledge on this matter, and if you are feeling unsettled then maybe I can help https://lnkd.in/egZ73M8X