“Investors Prep for Active 2016, but Many Plan to Proceed Cautiously” by Laura Kreutzer of Private Equity Analyst featuring Eric Zoller
As some midmarket firms raise larger amounts for their core strategies, others are launching funds to target smaller deals, following in the footsteps of groups such as Vista Equity Partners and Riverside Co. Thoma Bravo, TSG Consumer Partners and Alvarez & Marsal have all pitched new funds in the past year that target investments that are smaller than those they back through their flagship funds.
“It’s an opportunity for GPs to leverage the halo that they already have in certain sectors or [strategies],” said Eric Zoller, co-founder and partner at placement agent Sixpoint Partners.
Although economic growth in China also poses some fundraising challenges for managers in 2016, investors view that market more favorably than Brazil, thanks partly to its size and buoyant growth rate compared to other markets. However, they add the types of funds investors favor are shifting away from those focused on export manufacturing or resource intensive investments.
“You see continued demand around consumer-driven strategies, or special situations and distressed strategies,” said Mr. Zoller of Sixpoint Partners. He added that although the latter is relatively difficult to do, given China’s regulatory regime, LPs still find it attractive.
The full article can be viewed on Private Equity Analyst’s Website: PEA