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Private Equity 101

Private Equity 101

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Private Capital, Private Equity & Private Debt Fund accounting, Fund administration, Fund raise

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پست‌های کانال
Private equity firms could be on the verge of joining the global M&A resurgence, with buyout groups sitting on around $1.5tn of capital that could increasingly be deployed into acquisitions. Private equity buyouts, however, have accounted for just $286bn of that total, representing 8.2% across 680 deals out of 30,384 transactions.

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The "exit problem" refers to the difficulty private equity firms currently face in selling companies they acquired during the peak valuation years of 2020 and 2021. High Purchase Prices: Deals struck during the market boom were executed at very high valuations. Rising Interest Rates: Increased interest rates have made debt-financed buyouts much more expensive, making it harder to justify the price tags and achieve the expected returns. Holding Back Assets: Many firms are choosing to hold onto these companies longer than anticipated, hoping that waiting for better market conditions will eventually yield a higher value. As a result, there is now a significant backlog of over 33,000 companies held by private equity firms, which has led to lower capital distributions to investors.
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NVIDIA Partners With Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to Establish AI Compute Infrastructure Financing Platforms to Mobilize Over $500 Billion of Third-Party Capital | NVIDIA Newsroom https://nvidianews.nvidia.com/news/nvidia-partners-with-apollo-blackrock-blackstone-brookfield-goldman-sachs-and-kkr-to-establish-ai-compute-infrastructure-financing-platforms-to-mobilize-over-500-billion-of-third-party-capital
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Mastering Rated Note Feeders https://www.valuationresearch.com/insights/mastering-private-equity-rated-note-feeder-strategies/
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Private Equity: 1H 2026 in 10 Points • Global PE investment reached US$1.0 trillion in H1 2026, demonstrating resilience despite geopolitical and macroeconomic uncertainty. • Investors became increasingly selective, prioritizing fewer, larger, high-conviction deals, pushing rolling deal volume to a five-year low. • The Americas remained the largest investment destination (US$579.2B), while EMA hosted three of the world's four largest PE deals in Q2. • Energy & Natural Resources emerged as the standout sector (US$149.2B), driven by energy security concerns and AI's growing power requirements. • AI reshaped capital allocation. Investment shifted away from software toward AI infrastructure, data centers, industrial manufacturing and enabling technologies. • Exit values remained resilient, but exit volumes stayed subdued. Sponsors increasingly relied on secondaries and continuation vehicles to provide liquidity. • The Middle East conflict and Strait of Hormuz disruptions reinforced the importance of energy resilience, influencing sector and geographic investment decisions. • India continued attracting PE capital through family-owned businesses, healthcare, financial services and precision manufacturing, although elevated valuations remained a challenge. • PE firms increasingly focused on risk-adjusted returns, favoring transparent markets with strong long-term structural growth. • Looking ahead, the industry is watching US IPO market reopening, while AI infrastructure, energy transition and digital infrastructure remain the strongest investment themes for H2 2026.
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Primer: Continuation Funds in Private Equity and Venture Capital - Lexology https://www.lexology.com/library/detail.aspx?g=4294614d-ccaa-4741-922f-ce842ae26803
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https://www.kkr.com/content/dam/kkr/insights/pdf/2026-mid-year-outlook.pdf
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https://www.blackrock.com/gls-download/literature/whitepaper/private-markets-outlook-2026.pdf
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https://assets.kpmg.com/content/dam/kpmgsites/dp/pdf/2026/kpmg-pe-pulse-q1-2026.pdf
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https://www.mckinsey.com/~/media/mckinsey/industries/private%20equity%20and%20principal%20investors/our%20insights/mckinseys%20global%20private%20markets%20report/2026/private%20equity/gpmr2026-private-equity-clearer-view-tougher-terrain_final_v10.pdf
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The State of Private Markets 2026 | MSCI https://www.msci.com/research-and-insights/paper/the-state-of-private-markets-2026?utm_source=chatgpt.com
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Carried Interest Loans Gain Popularity in Private Equity https://www.ennessglobal.com/insights/press/private-equity-leaders-turn-carried-interest-loans-payouts-slow
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Evergreen PE funds in 2026 - final.pdf https://content.moonfare.com/hubfs/white-papers/Evergreen%20PE%20funds%20in%202026%20-%20final.pdf
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Executive Summary The European Commission is exploring reforms to improve liquidity in private markets as part of its Savings and Investments Union agenda. Core issue: Private equity investors face limited exit options due to challenging IPO markets, fragmented secondary sales, limited valuation transparency, and overall illiquidity. Key proposal: Create a regulated, intermittent secondary trading platform for private company shares—essentially a private-company marketplace that opens during scheduled trading windows rather than operating continuously. Potential benefits for PE funds: Faster and more efficient exits Broader pool of potential buyers Improved price discovery and valuation transparency Reduced dependence on IPOs and M&A transactions Additional liquidity pathway for portfolio companies Consultation focus areas: Barriers to PE exits Inefficiencies in current exit routes Design of private-share trading markets Disclosure and investor-protection requirements Whether companies should be allowed to raise new capital on such platforms Why it matters: If implemented, these reforms could fundamentally improve how private equity investments are exited and valued, making private markets more attractive to institutional investors while bringing elements of public-market infrastructure into private markets. For PE fund administrators, this could represent one of the most important market-structure developments in Europe in recent years.
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WEF_The_Future_of_Venture_Capital_2026.pdf https://reports.weforum.org/docs/WEF_The_Future_of_Venture_Capital_2026.pdf
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