There are a notable number of LPs taking the European direct investment market by
storm, setting up direct platforms and strengthening teams across all levels. The
definition of direct investment still varies from one institution to the other: some
focus on traditional syndicated co-investments but more and more we are seeing a
strong commitment towards co-underwriting / co-sponsoring and pure direct – a la GP style!
This transformation is largely led by some of the highly capitalised North American Pension Funds and some of the long-standing independent fund investors that have evolved and changed strategies to get further access to the economics around direct transactions. In some cases, this transition has had a positive impact on the LP/GP relationship by bringing them closer, and in others not so much, as tension around the competition for deals starts to build up.
For potential and experienced private equity professionals alike, this presents an exciting new opportunity in the market.
In the last 12 months, PER has placed over a dozen investment professionals within the direct teams of what traditionally used to be limited partners. Some of the benefits of moving into these teams include:
In short, these are highly capitalised investors providing access to great deals, getting involved in origination and all aspects of execution and an ability to complete deals in a competitive environment. They are also competitive when it comes to compensation and long term incentives. So, if you enjoy being surrounded by all the above and like the thrill of a deal, a new alternative opportunity has now become available to you.
Come and talk to us if you want to learn more!