LP Allocations Remain Strong in PE
LP Allocations Remain Strong in PE
News, insights and updates from the team at Bloom Equity Partners
Happy Friday fellow technology investors and operators.
We’re back with The Weekly Bloom - a must-read for investors, operators, and founders navigating the world of software private equity. This week we’re looking at:
LPs outlook on the private markets
Chart of the week: most active PE investors
Our teams’ favorite articles and podcasts from the last week
Rule of 40 Growth Multiplier
M&A rollups breakdown
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2022 Global League Tables: Most Active PE Investors
Last week Pitchbook released its, 2022 Global League Tables, ranking the most active investors across asset classes. Here’s a list of the most active PE firms in the US (all deal types):
Source: Pitchbook
LP Allocations Remain Strong In Private Markets
Institutional investors continue to hold a positive outlook on private equity, despite increasing challenges in the private market landscape. In the recent State Street Private Markets Study 2023, 63% of the 480 surveyed participants said they expect that their largest allocation will be to PE in the next couple of years.
Institutional investors have allocated enormous amounts to PE for the past three decades with their allocations ever-increasing. Despite growing headwinds, the private markets have remained profitable over the last 15 years, with many of the strongest vintages arising from recessionary periods. Institutional investors, therefore, will continue to allocate to private market asset classes to gain exposure to what are expected to be some of the best vintages to come.
-Alexis Weber
A few other interesting findings from the report:
68% of respondents said they plan to keep their allocations to the private markets in line with current targets over the next two to three years.
81% of asset owners agreed that the higher cost of borrowing is likely to negatively impact the attractiveness of private market investments that are highly leveraged.
This is an optimistic outlook for an asset class faced with a rising cost of capital, inflation concerns, and the aftermath of the denominator effect, which hit institutional portfolios hard in 2022.
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What We’re Reading and Listening To…
Data and Software: No Longer the Wild West
Deals From Across The Industry
KKR-backed BMC Software confidentially files for U.S. IPO
Blackstone to acquire event software firm, Cvent Holding Corp
Francisco Partners invests in payroll and accounting software specialist
Bloom Equity Partners Career Opportunity
We're looking for folks with decorated experiences as a CEO/COO/CRO/CFO, specifically with LMM B2B Technology companies ($5-50m in revenues) to join Bloom Equity Partners' internal consulting group. We are open to flexible arrangements (full-time, part-time, or contract).
This effort is to support our goal of providing stage-appropriate strategic and tactical advice to the management teams that we are fortunate to partner with, on our quest to develop already great companies into market leaders.
Please reach out if there's a fit or if you would like to learn more.
Link to job posting: Operating Partner
Favorites from the Ecosystem
Investors….
Operators….
Finders Program
Bloom Equity referral partners are our boots-on-the-ground referral network helping us scope out mission-critical, vertical SaaS businesses with $3M+ in revenue who are looking for their next phase of growth.
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End Note
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