Buyout executives say distributions are ‘magic word’ after exit slowdown
Buyout executives say distributions are ‘magic word’ after exit slowdown
Reach Capital | Private Assets Advisor's William Barrett, CAIA caught up with the Financial Times’ Alexandra Heal at IPEM, exploring the challenges buyout managers are facing following two years of slowed fundraising and exits markets.
William explains how these dynamics are posing increasing challenges for GPs, particularly those raising generalist funds, and what this could likely mean for private equity firms with specialist strategies in the market.
Read the full article below, which explains why DPI (distributions to paid-in capital) has replaced IRR as the key metric of a manager’s performance by LPs, powered by high interest rates, and the current record level of both dry powder and un-exited companies.
Read the full piece here: https://www.ft.com/content/61a6daf9-8429-4a08-9d85-f0e34e224c75
William explains how these dynamics are posing increasing challenges for GPs, particularly those raising generalist funds, and what this could likely mean for private equity firms with specialist strategies in the market.
Read the full article below, which explains why DPI (distributions to paid-in capital) has replaced IRR as the key metric of a manager’s performance by LPs, powered by high interest rates, and the current record level of both dry powder and un-exited companies.
Read the full piece here: https://www.ft.com/content/61a6daf9-8429-4a08-9d85-f0e34e224c75