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Ryan Van Wagenen - Global Trends in Private Equity

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Ryan Van Wagenen, Director at Global Private Equity. Internal Training Material - Ryan Van Wagenen shares recent trends within private equity. Overview of the deal flow in 2017 and 2018 YTD.

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Ryan Van Wagenen - Global Trends in Private Equity

  1. 1. Global Trends in Private Equity Ryan Van Wagenen - Director at Global Private Equity
  2. 2. Ryan Van Wagenen - Global Private Equity •  Closed-end funds that invest in property. Includes core, core-plus, distressed, opportunis8c, and value-added real estate as well as real-estate debt funds. •  Note that real estate as an overall asset class grew when accoun8ng for growth in open-ended funds as well as separately managed accounts.
  3. 3. Ryan Van Wagenen - Global Private Equity •  Buyout funds based in the US that closed above $5 billion. •  Includes venture, growth, other private equity (balanced, hybrid, private investment in public equity). •  Includes closed-end real estate, private debt, natural resources, infrastructure.
  4. 4. Ryan Van Wagenen - Global Private Equity •  Solid growth was also seen in the middle market. Buyout funds of between $500 million and $1 billion raised $31.8 billion globally in 2017 •  Middle-market fundraising was strong but was overshadowed by global megafund buyouts, which jumped 93 percent over the same period from $90.1 billion to $173.7 billion.
  5. 5. Ryan Van Wagenen - Global Private Equity •  Includes fundraising in private equity only, and includes 2 firms that are now defunct.
  6. 6. Ryan Van Wagenen - Global Private Equity •  Europe and North America combined raised more than $50 billion, mostly targe8ng vast projects to renew and expand exis8ng assets •  The outstanding ques8on is not demand, but supply; while many new projects are seeking investors
  7. 7. Ryan Van Wagenen - Global Private Equity
  8. 8. Ryan Van Wagenen - Global Private Equity •  It is safe to assume that the largest firms are also capturing a dispropor8onate share of these funds. •  If the top 20 firms account for more blind pool capital than at any point in the past 15 years
  9. 9. Ryan Van Wagenen - Global Private Equity
  10. 10. Ryan Van Wagenen - Global Private Equity •  The falling deal count reflects a few factors. First, deal size has increased, driven mostly by mul8ples, making each deal a more significant commitment for GPs •  Second, targets are harder to find and some (though not all) GPs are more cau8ous, pursuing only those deals where they think they can realis8cally achieve a[rac8ve IRRs
  11. 11. Ryan Van Wagenen - Global Private Equity •  Indeed, dry powder has grown by 10 percent on average every year since 2012. •  If we compare dry powder to other measures, such as funds raised and AUM, “stocks” of capital available for investment have changed li[le over the past few years vis-à-vis the size of the industry.
  12. 12. Ryan Van Wagenen - Global Private Equity
  13. 13. Ryan Van Wagenen - Global Private Equity •  However, making this shia can be challenging, and success depends on LPs’ governance model, capabili8es, size, and risk tolerance. •  The value of co-investment deals has more than doubled since 2012 (totaling $104 billion in 2017)
  14. 14. Ryan Van Wagenen - Global Private Equity •  One a[rac8ve feature for GPs is the poten8al to reduce fundraising costs by elimina8ng the fric8on of returning and realloca8ng capital every few years. •  Predictable income tend to trade at higher mul8ples
  15. 15. Ryan Van Wagenen - Global Private Equity Ryan Van Wagenen Professional Overview •  Global Private from 2009 to Present •  Promoted to Director within Global Private Equity in 2011 •  Oversees origina8on process team in deal assessment, modeling, due diligence and transac8on nego8a8on •  Leads execu8on by managing the transac8on process and structuring the detailed terms of the investment opportunity •  Prior opera8ons manager at Ci8 Trends from 2006-2009 -  Lead team in data entry, accounts payable, payroll, grant report entry, and helping and crea8ng organiza8onal and program budgets in collabora8on with the execu8ve director •  Westminster College alumnus where he received a Bachelor of Science in Finance •  S8ll ac8ve in the outdoor community and is an avid backcountry skier, mountaineering racer, hiker, rock climber, and mountain biker •  Loves to provide service in the local community
  16. 16. Global Private Equity Conference – New York City – March 2018

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