- P.E. 150
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- The $73B Opportunity In Mobile Phone Insurance, Evergreen fund growth, Blackstone's $22B Push
The $73B Opportunity In Mobile Phone Insurance, Evergreen fund growth, Blackstone's $22B Push
This Friday we deep dive into the investment opportunity in mobile phone insurance which is growing at a CAGR of 12.77%. Evergreen funds continue growing in the secondary market, offering greater liquidity, projected to reach 25-30% of AUM within three years. And Blackstone raised $22 billion for its Senior Direct Lending Fund.
Happy Friday !
This Friday we deep dive into the investment opportunity in mobile phone insurance which is growing at a CAGR of 12.77%.
Evergreen funds continue growing in the secondary market, offering greater liquidity, projected to reach 25-30% of AUM within three years. And Blackstone raised $22 billion for its Senior Direct Lending Fund.
Hope you have a great day and best to a great weekend!
— Gaston Brizuela & Santiago Morazzani, Senior Private Equity Analysts
In this Issue
Data Dive
Private Equity Opportunities in Mobile Phone Insurance
The mobile phone insurance market is booming, projected to grow from $31.56 billion in 2023 to $73.2 billion by 2030, at a CAGR of 12.77%. This growth is driven by rising smartphone prices, higher device vulnerability, and increasing consumer demand for digital protection solutions. For private equity investors, this presents a compelling opportunity to back InsurTech platforms that offer digital insurance products. With app-based purchasing, simplified claims, and subscription models, these platforms cater to a tech-savvy user base while creating scalable and high-margin business models. Moreover, bundling insurance with smartphone sales or telecom services unlocks valuable cross-selling potential, maximizing returns for PE-backed ventures.
Liquidity
Evergreen Funds: taking over the secondaries market?
Evergreen funds are increasingly prominent in the secondaries market, projected to reach 30% of assets under management (AUM) within three years. These open-ended vehicles provide greater liquidity options for private wealth investors, who are increasingly engaging with private markets. In contrast to traditional closed-ended funds, evergreen funds allow limited redemption options for LPs, supported by the income generated from assets, making them especially well-suited for income-generating investments.
There is a massive strategic importance of liquidity in evergreen funds, particularly as general partners (GPs) seek to access the $450 trillion private wealth market. This drive for liquidity has led major firms to launch evergreen funds, such as Apollo’s S3 Private Markets Fund and Coller Capital’s Coller Secondaries Private Equity Opportunities Fund.
Raymond James estimates that evergreen funds could soon hold 25% to 30% of global secondaries AUM, due to their ability to compound capital continuously. This shift in structure introduces competition for traditional closed-end funds, especially as evergreen funds can often pay higher prices for portfolios while targeting lower internal rates of return (IRRs).
Deal of The Week
Blackstone’s $22B Push Into Private Credit
Blackstone scored big this week, locking down $22B for its Senior Direct Lending Fund—more than double its original $10B goal. With direct lending funds outperforming most private markets at 11.1% returns, it’s no wonder they’re dominating private debt fundraising this year. Blackstone now manages over $123B in direct lending assets, solidifying its spot as a major player. As banks retreat amid shifting rates, PE players like Blackstone and Ares are happy to fill the gap, providing a lifeline for leveraged deals.
⌚ This Week in History
RJR Nabisco Buyout: The Billion-Dollar Brawl
In late October 1988, a corporate takeover saga kicked off that would redefine Wall Street: the RJR Nabisco leveraged buyout (LBO). At $31.1 billion, it became the largest LBO of its time. Kohlberg Kravis Roberts & Co. (KKR) clinched the deal in early November, outmaneuvering the management-led buyout team led by CEO F. Ross Johnson. While management bid higher at one point ($112 per share), KKR’s $109-per-share offer prevailed, thanks to a slick financing plan fueled by junk bonds and a reputation for closing complex deals. This audacious acquisition sparked debates over financial engineering, ethics, and governance—topics still relevant today.
🏆 Inspirational History
From Adversity to Impact: Strive Masiyiwa's Journey of Building a Global Telecom Empire and Empowering Africa
Strive Masiyiwa, born in Zambia and raised in Zimbabwe, overcame significant economic hardships to establish Econet Wireless, Zimbabwe’s first independent telecom company, after a lengthy legal battle. Econet has since grown into a global telecom and tech giant, operating across multiple continents. Beyond business success, Masiyiwa’s impact extends to philanthropy. Through the Higherlife Foundation, he and his wife have supported over 40,000 children's education and led health initiatives across Africa. His journey from poverty to global entrepreneur showcases how determination and social responsibility can drive transformative change.
