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Private markets still turbulent
Had a chat with a EUR2bn PE fund manager today, touching upon investment opportunities, the PE landscape and the fundraising environment.

He shared a couple of instances where things still seem quite turbulent, with many small/mid-market managers facing an uphill battle deploying capital at attractive IRRs in Europe. Firstly, because the operators and investors who were relying upon cheap sources of freely available capital over the last decade are realising they might have to adjust their strategy to this new environment. Secondly, LPs are increasingly getting wary of markdowns and are looking ways to rebalance portfolios/free up capital, which means lower allocations for privates.

The markets might still be turbulent, but large funds with existing investment platforms and operational expertise now have the upper hand in winning deals, raising scarcely available capital and deploy at lower multiples. Most funds and LPs are increasingly shifting towards infrastructure strategies, where they can ensure decent IRRs with lower downside risk.
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