Here we answer some additional questions from the audience we didn't get time for in the live discussion between Steffen Pauls and Johannes Huth.
Q: How would you rate the competition now with respect to deal sourcing? Are you seeing fierce competition for assets and if so how are you keeping an edge?
A: Yes, competition is tough but we think we have developed some key differentiating angles in our European business that really help us. I would cite three of these in particular:
Q: In terms of the quality and size of the opportunity set, are there particular geographies that stand out for you right now?
A: In Europe, the DACH region has always been an incredibly active region for us and we expect this to continue. Also, in spite of the uncertainty caused by Brexit, the UK has historically been the largest buyout market in Europe by deal volume, and we do think we will continue to see interesting opportunities emerge there.
One region where we have recently further stepped up our efforts is France. I am personally spending a lot of my time in France today and we have grown the team in our Paris office which is really starting to bear fruit in terms of deal flow.
Q: You mentioned the idea of monetary policy and its effect on asset prices. What do you tell friends or partners who believe they can get rich in the stock market, or who think they should be overweight public equity to participate in these increasingly high public equity prices?
A: In my opinion private equity has had and will continue to have a risk/reward profile that makes it a valuable addition to a portfolio, for investors with a long horizon. Private equity’s performance reflects the illiquidity premium and the value added by the sponsor through M&A support, internationalization, digitization, and other tools of active ownership. And for investors who want access to fast-growing companies, private markets can offer a greater range of opportunities than public markets.
It’s getting better, but European public markets still have a relatively small share of fast-growing, technologically enabled companies, for example. Many of those kinds of companies are still in private ownership. So, my advice would be to consider the whole spectrum of potential opportunities, not just public markets.
Q: Could you name 2-3 trends you expect to emerge this year in the private equity industry?
View the conversation between Steffen Pauls and Johannes Huth below and feel free to share within your network. To stay informed about future Deal Talk events, follow Moonfare on LinkedIn. And if you haven’t yet created your Moonfare account, you can register in a few minutes by clicking here.
This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Your capital is at risk.
¹ Past performance is no guarantee of future returns.
Please read this important information. By selecting I AGREE this indicates that you have read and understand the below, before accessing the rest of this website.
This disclaimer is intended for UK readers accessing this website who should be aware that Moonfare cannot guarantee all information displayed on its website will be relevant or suitable for UK audiences. Moonfare cannot guarantee the information contained on its website is up to date, and makes best efforts to ensure it sources and data are accurate at the time of publishing.
The information on this website may not be suitable for all investors and we therefore need to ensure that you are sufficiently aware of the risks and are of a suitable category as defined by the Financial Services and Markets Act 2000.
The information set out in this website does not constitute or form part of any offer to issue or sell, or any solicitation of an offer to subscribe or purchase any investment, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with any contract.