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EQT's $14.5B Move, PE's Infinite Game (Theory), 20 Oldest Companies In The World
This week we explore how private equity must understand the game they’re playing, and adopt the mindset of an infinite game to succeed. We also cover the strength of the US economy via robust consumer spending, a strong labor market and high investment rates.
Happy Monday ,
This week we explore how private equity must understand the game they’re playing, and adopt the mindset of an infinite game to succeed.
We also cover the strength of the US economy via robust consumer spending, a strong labor market and high investment rates.
In other news, EQT Leads $14.5B Nord Anglia Deal with guidance from leading law firms.
Cheers to tackling another week filled with challenges and opportunities!
— Gaston Brizuela & Santiago Morazzani Senior Private Equity Analysts
In this issue:
📚 Data Dive
The Infinite Game of Private Equity
Private Equity (PE) isn’t about winning a single deal—it's about staying in the game. The real winners? Those who know how to play the long game. Like Simon Sinek's "Infinite Game," PE isn’t about closing the biggest deal; it’s about staying in the game. Think strategic partnerships, adaptability, and always learning. For PE firms, it’s less about “winning” today’s bid and more about positioning themselves for tomorrow's opportunities. They focus on relationships, not just transactions, ensuring they’re around for the next big move.
Want to learn more?
📈 Trend Of The Week
Continuation Funds: PE’s Not-So-Secret Weapon
GPs’ favorite trick lately? Continuation funds. These vehicles let them hold onto high-performing assets while keeping exit doors open—an irresistible combo in volatile times. By 2024, exit values are set to hit $9.0B, a massive leap from $0.2B in 2014. Meanwhile, LPs remain wary. Why? Conflicts of interest abound when GPs sit on both sides of the table, prompting 56% of failed deals to cite valuation disputes. The lesson? Continuation funds may be thriving, but for LPs, it’s still a cautious embrace.
🤝 Deal of the Week
EQT Leads $14.5B Nord Anglia Deal, Guided by Top Law Firms
Nord Anglia Education is set for a $14.5 billion acquisition, led by EQT, Neuberger Berman, and CPP Investments. Legal powerhouses Latham & Watkins, Cravath, and Ropes & Gray are steering the transaction, with EQT and CPP retaining shares in the education giant. Financial giants like Goldman Sachs and JP Morgan are backing the buyout, marking a significant milestone in private equity's push into global education. This deal underscores the strategic importance of international schools, particularly as demand spikes in emerging markets.
PE 150 Roundtable Discussion: In-House Teams vs. External Advisors: Where’s the Edge?
Join us for a private roundtable with a group of middle-market sponsors in our 150 Forum
💬 Discussion Topics Include:
The top pros & cons of in-house vs. external advisors in driving portfolio growth.
Speed and quality differences: Which approach gets results faster and better?
Operational turnarounds: Do in-house teams or external experts handle surprises better?
Deal sourcing vs. portfolio support: Where should internal diligence teams focus?
🎙️ Expert Panel:
3 Private Equity Principals, sharing war stories and tactical insights on building effective value creation teams.
📅 When: Q4 2024 – Stay tuned for details in upcoming issues!
🎧 Podcast of the week
Deal-By-Deal: Navigating Governance and Rollover Equity in Independent Sponsor Deals with Mike Palm
McGuireWoods' "Deal-by-Deal" podcast dives into private equity’s middle-market arena with a focus on the independent sponsor model. Building trust, aligning interests, and navigating board dynamics take center stage, with Mike Palm highlighting the importance of proactive communication and founder alignment. The takeaway? Start conversations with capital providers early, be transparent, and stay collaborative to seal successful deals. It’s the roadmap for private equity pros looking to make their mark in the middle-market landscape.
📈 Macroeconomics Corner
U.S. Economic Outlook
The U.S. economy continues to demonstrate robust health, with Deloitte projecting a 2.4% growth in real GDP for 2024. This optimism stems from strong consumer spending, solid business investment, and a resilient labor market. However, potential risks such as geopolitical tensions and persistent inflation could influence this positive trajectory.
🐣 Tweet of the week
Boom: Meet the 2024 Fintech 100, the most promising private fintech companies across the globe
This year’s winners are working on everything from deploying novel AI solutions to expanding access to financial services
See the 2024 cohort: cbi.team/4eTGi37
— CB Insights (@CBinsights)
1:10 PM • Oct 24, 2024
"The best way to predict the future is to create it"
Peter Drucker