Nomura Asset Management’s Post

A few years ago, I wrote my business school thesis on the outlook of private equity ultimately predicting its impending growth. In a world where predictions are often difficult and tricky to make, I predicted that dry powder pouring into private equity would reach record levels. And (perhaps with a bit of luck on my side) my conclusion was quite spot on. According to McKinsey & Company, fundraising went up by nearly 20 percent year over year in 2021 to reach a record of almost $1.2 trillion despite (or perhaps because of) pandemic-driven turbulence. In the same year, Global buyout and growth equity deal volume grew nearly 50 percent year on year to over $2 trillion in more than 14,000 transactions. Global private equity net asset values also grew by record levels outstripping growth in public equities by almost 10 percentage points. My conclusion was primarily based on stereotypical business cycles which often have a significant impact on the availability of affordable debt, a key driver for many private equity deals. Now, I’m thinking about yet another prediction, this time with a bit more experience under the belt. My forecast is not exactly novel and is something I think most seasoned asset managers already know or would agree with. And that is that private equity would lead the way in energizing the current and much needed energy revolution. Whether we like it or not, a near complete shift towards cleaner energy is inevitable. Resources are dwindling and the science, around which our lives are inextricably intertwined, is overwhelmingly clear. With the support of the Fed, Congress, and with innovation and activism from most asset managers including trailblazers like BlackRock and Blackstone, it’s only a matter of time before new records are set. Courtesy: McKinsey & Company

European private equity groups forced to keep assets longer. We have seen the average hold period increase to about 6 years, with historical periods being 3 to 5 years. As the exit environment remains difficult and pressure on valuation multiples this will continue; important to note about a third of value creation was generated simply through multiple expansion. As such hold periods have increased and a different or at least reviewed perspective of value creation must be taken. Given that ESG and Sustainability are in focus already, the need for long term value creation for stakeholders has definitely impacted the attention its getting from investors as they review, revise and pivot their investment thesis. #leadership #strategy #finance #leveragedfinance https://on.ft.com/3QU9UTY via @FT

Three big questions for multi-asset investors: US equities, bond performance and ESG. #MultiAsset #Investors #USEquities #Bonds #ESG Analysis from Shane O'Brien, Senior Investment Director & Head of Multi-asset & Macro Investment Specialists at Aviva Investors.

🤔 Curious about the connection between MSCI Inc. and Morgan Stanley? Dive into the details and uncover the relationship between these financial giants.💼🔍 🔽 Learn more in our latest featured article or check out www.knowesg.com for more sustainability news 🌏♻️ #MSCI #MorganStanley #FinancialConnections #ESGInsights #FinanceNews #InvestmentAnalysis #CorporateOwnership #FinancialGiants #KnowESG #MarketInsights #InvestorKnowledge #ESGResearch #FinancialWorld #SustainableFinance #StockMarket #InvestmentFacts #ESGInvesting #CorporateControl #FinancialMarkets #OwnershipDetails #EconomicConnections #MarketLeaders

Private markets play a significant role in environmental investing - at the forefront of innovation, they provide diverse, lateral approaches to tackling the climate crisis, amongst other distinct advantages to investors. Join our Pictet Asset Management experts Marc-Olivier Buffle, Head of Thematic CPMs and Research, and Nicolas THOMAS, Private Equity Thematics Principal, in an on-demand webinar in which they outline the new technologies and strategies for success in these specialised and emerging sectors. Watch now: https://lnkd.in/ekvPZYAr #Pictet #Innovation #Innovationsintechnology #ThematicInvesting #PrivateEquityCompanies #PrivateEquity #ESG

"The investment industry has entered a new, uncertain, and transformational era" So says the CFA Institute in its Future State of the Investment Industry report 📖 If the industry doesn't build trust, it risks radical disintermediation 🚨 4 scenarios the CFA sees coming: - Diverging Worlds - Sustainable Finance - Digital Transformation - The End of Cheap Money I'd say these are already playing out 👀 Key 5 principles for success 📌 1️⃣ Build a purpose-driven culture with a fiduciary mindset 2️⃣ Align performance measurement with end-investor goals 3️⃣ Integrate sustainability risks & opportunities and consider the alignment of incentives & time horizons 4️⃣ Enhance innovation by prioritising technology & data science 5️⃣ Address system-wide industry challenges through collaboration with coalition organisations To avoid irrelevance, you have to become truly client-focused What will you do differently? #assetmanagement #investment #cfa ___________ Follow me, tap the bell 🔔 on my profile Lucy Walker, CFA You will be notified when I post. ___________

World's largest Asset Management Firms. The top two firms Blackrock and Vanguard alone control around 18 trillion dollars of assets. That's mind boggling !!! Maybe... not the various governments, but these firms control the world. #economics #assetmanagement #blackrock #vanguard #government #india #globaleconomy #gdp

The Janus Henderson Portfolio Construction & Strategy Team discuss how thematic investing provides access to the forces reshaping the global economy. #InvestingInvolvesRisk

Global private equity is now seeing the beginnings of a pick-up in activity, with 'green shoots' emerging for prospects this year and beyond, despite 2023 having seen PE's sharpest drop-off since the global financial crisis of 2008-09.

Pepper MarketScope Private Markets Gaining Momentum: Key Takeaways from the Morningstar Investment Conference The recent Morningstar Investment Conference highlighted the growing interest in private markets, with both opportunities and challenges discussed. Here are some key takeaways: 1) Strong Demand: Financial advisors and fund managers are increasingly interested in private credit and equity due to their potential for higher returns and diversification 2) Undiscovered Potential: Private direct lending offers attractive yields and the ability to exploit inefficiencies in the market 3) Evolving Landscape: Evergreen funds are emerging as a way to increase accessibility to private markets with lower minimums and some liquidity 4) Careful Selection Crucial: Manager selection is paramount due to the complexities and lack of transparency in private markets Pepper can be extremely beneficial for Asset Managers in navigating the private markets space. Our platform can help with: 1) Selecting the right deals through superior data analysis and market insights 2) Maintaining clear visibility on your portfolio with real-time performance tracking 3) Ensuring accurate valuation of your assets with our robust valuation tools Let Pepper empower your private market investments. To know more, talk to us Pulak Sinha Ann Eberle Thomas #privateequity #privatecredit #alternativeinvestments #institutionalinvesting #financialadvisors #assetmanagement #investmentconference #managerselection #privatemarkettransparency #dataanalysis #marketinsights #portfoliovisibility https://lnkd.in/g-Pp6PNZ