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Sunaina Sinha, Global Head of Private Capital Advisory at Raymond James, talks to Ross Butler about the challenges of raising private capital funds in today’s market. Tl:dr – it’s not easy.
This episode is supported by Datasite, the leading M&A platform for dealmakers. https://www.datasite.com/en
Fundraising cycles have extended to 22-23 months on average, reflecting the challenging environment. Firms must offer co-investments, fee discounts, and management fee holidays to attract investors. The tenor of fundraising conversations has shifted, with private equity firms needing to provide various incentives to secure commitments.
We cover dry powder, the rise of co-investments, and the influence of Middle Eastern and private wealth in the market.
2023 was marked by significant challenges due to a liquidity squeeze and reduced exit activities.
This environment has been tough for institutional limited partners, leading to a shift in investment metrics. (i.e. DPI is the new IRR)
Rise of Co-Investments
How investors are leveraging their power to demand fee-free co-investments.
Sector Focus: Private Credit and Infrastructure
Private credit is booming due to bank pullbacks and high-interest rates, while infrastructure investments are attractive due to their tangible nature and inflation resistance.
Thank you to our episode partner Datasite, the leading M&A platform for dealmakers.
For more information, visit: www.datasite.com
#wheredealsaremade
#privateequity #fundraising #raymondjames #investmentstrategies #marketdynamics #businessstrategy
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Contact Information: About Fund Shack: Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.
Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group