Insights from BlackRock's Latest PE Outlook Report
News, insights and updates from the team at Bloom Equity Partners
Happy Friday fellow technology investors and operators,
Welcome back to another edition of The Weekly Bloom - one of the best weekly resources for Private Equity, Enterprise Software, and Technology news. We hope that you enjoyed last week’s State of Middle Market PE.
This week’s edition features:
Chart of the Week: PE Outperforms Public Markets
A recent BlackRock report emphasizes that private equity has historically delivered stronger returns than public stocks, especially during periods of distress.
PE has tended to outperform the public markets with a greater alpha during recessions, and direct allocations that allow for focused deal selection and portfolio building are well-positioned to benefit from these times.
Beyond the potential benefits of diversification and decreased volatility, private equity has historically demonstrated superior risk-adjusted performance relative to other equity strategies. The best vintages often follow recessions, and PE tends to outperform public equity by a greater alpha during periods of distress.
Secondaries Continue to Show Strong Momentum
Partner with Bloom Equity Partners
We're big fans of mission-critical enterprise software, technology and tech-enabled business service companies with a competitive moat and a loyal, diversified, and growing customer base. Whether the business is bootstrapped, VC-backed, or a division of a larger organization, Bloom is completely agnostic to the structure. We are actively seeking investment opportunities that fall within the criteria below. We welcome the opportunity to discuss potential investments with founders, operating executives and intermediaries.
Our Investment Criteria
Industry: Enterprise Software, Technology and Tech-Enabled Business Services
Geography: North America, Europe, Australia and New Zealand
Revenue: $5M - $40M (>70% recurring)
Growth: 5%+ annual revenue growth
Retention: >80% gross annual customer retention
Profitability: Positive EBITDA or near breakeven within six months
Investment Type: Operational control required
If you or someone you know is considering selling or taking investment in their business, we would love to learn more! We just launched our referral partner program, which compensates referrers for introductions that lead to affirmative outcomes.
What We’re Reading and Listening To…
Bain Global Private Equity Report 2023
The Post-SVB Software Debt Market
Blackrock 2023 Private Markets Outlook
Bloom Equity Partners Career Opportunity
Investing from our debut Fund, we’re actively hiring for our investment team, linked below. Reach out to careers@bloomequitypartners.com or on the specific job ad if you'd like to learn more / recommend someone for a role.
Favorites from the Ecosystem
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Miscellaneous….
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