Mid-Year Market Updates
News, insights and updates from the team at Bloom Equity Partners
Founders & Friends, Happy Friday!
We are back with another week of SaaS insights, news, and updates from the team at Bloom Equity Partners. This week, we’ll be sharing some insights from Bain's midyear PE update (GPs this one is for you!), as well as sharing our favorite content from the past week.
If you've been enjoying these newsletters, would you mind sharing with a fellow SaaS entrepreneur, investor or capital allocator that you feel would enjoy them too?
We’ve got a weekend’s worth of content for you so let’s get into it 🔥
Midyear Global Private Equity Update
Earlier this week, the Bain PE team shared a global midyear update. It’s a gold mine of insights and if you aren’t familiar with their yearly PE reports, we suggest you give them a read.
It’s a long report so here’s what you need to know:
With $3.6 trillion in dry powder generating fees, general partners (GPs) are well positioned to ride out a downturn and prepare for the recovery (see Figure 2). And that can spell opportunity: Deals done coming out of recessions tend to deliver strong returns.
Globally, private equity generated $512 billion in buyout deal value during the first half of 2022, putting it on pace to produce the second-highest annual total ever (2021 was the highest year ever). Average deal size remained close to $1 billion.
Global fund-raising showed a sharp decline, especially among buyout funds. Private capital raised globally came in at $645 billion vs. $789 billion during the first half of 2021. Buyout fund-raising dropped from $284 billion to $138 billion for the same time period.
The report also outlined a few strategies for fund managers:
Plan for scenarios, not certainties.
Avoid the straight-line mistake.
Disaggregate price and volume.
Look for inflation winners.
Challenge your intuition about market growth.
The takeaway here is that PE funds need to manage proactively to anticipate change and get ahead of it. That will be critical in weathering this period of turbulence and taking full advantage of the recovery to come.
Well said 👏👏
What We’re Reading and Listening To…
📚 Roper Technologies- Reinvesting Cash Flow into Software Assets
📚 Bain Global Private Equity Report 2022
Favorites from the Ecosystem
Investors👇…..
Founders👇…..
Operators👇….
A Masterclass for delivering bad news👇….
News from the Industry: deals, deals, and more deals 💰
TA pays $400-million-plus for 30 per cent stake in imaging software provider Intelerad
Private equity fundraising 'is getting harder'; M&A activity falls off 2021 pace
Bow River Capital Completes Altiva Recapitalization
End Note 🔚
As always, if you're enjoying The Weekly Bloom, we'd love it if you shared it with a friend or two. We try to make it one of the best emails you get each week, and I hope you're enjoying it.
And should you come across anything interesting this week, send it our way! We love finding new things to read through members of this newsletter.