Saturday, 30 August 2014
Last updated 1 day ago
Oct 25 2013 | 11:26am ET
The Blackstone Group's private-equity chief does not like what he's seeing in his industry these days.
"Right now in Europe, something like 75% of deals above US$500 million in enterprise value are sponsors selling to each other," Joseph Baratta said at a Bloomberg summit in London. "That's not a sign of health in our market."
Secondary buyouts have totaled US$29.9 billion in Western Europe this year, compared to US$27.6 billion in primary buyouts, according to Allen & Overy.
"I'm rooting for a large-scale resumption of corporate M&A because that's the lifeblood of our business in private equity," Baratta said. "Large corporate mergers result in non-core asset sales or some corporations who don't have ready access to capital need our help. That's a healthy functioning private-equity market."
"The way the private-equity market in Europe is operating is problematic," Baratta continued. "There is a lot of capital, there is no corporate M&A of any substance, there is very little primary private-equity deal flow. And these is this generic belief that Europe is out of favor."
Baratta said bluntly that p.e. was not the place to be in Europe right now.
"Europe, in certain asset classes, presents a once-in-a-generation opportunity," he said. "Unfortunately, it's not in private equity."
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...