Value Add

Oct 10, 2024 | valueaddpe.com | Isabel O'Brien

Family offices have been around for years – longer than private equity firms. However, in recent years the number of family offices has exploded. According to Preqin, the number of family offices in the world tripled between 2019 and 2024, managing upwards of $6 trillion in assets. By 2030, Deloitte Private expects the number of family offices to be larger than the number of hedge funds.

Oct 3, 2024 | valueaddpe.com | Isabel O'Brien

Most anti-private equity activists will cite a famous 2019 study by California State Polytechnic University researchers Rastad and Ayash that finds that private equity-owned companies are 10x more likely than their non-private equity-owned counterparts to go bankrupt. The study uses data from LBOs that occurred between 1980 and 2006, pre-Global Financial Crisis. These were the days of private equity deals like Nabisco and Toys R Us – deals that quite publicly played out in a bad light.

Sep 26, 2024 | valueaddpe.com | Isabel O'Brien

Despite the between LPs on the value of ESG in operations, Apollo has maintained an ESG-focused team within its greater operational business. According to Apollo, despite the headlines that may suggest otherwise, the firm’s LPs want to see action on ESG. “Overall, LPs don’t all have the same demands or expectations on ESG.

Sep 19, 2024 | valueaddpe.com | Cooper Smith

The Federal Reserve has begun cutting interest rates, shifting from monetary tightening to easing, as inflation slows and the US economy softens. While dealmakers have been anticipating that lower rates will spur M&A activity, recent research from Value Add suggests that buyout activity tends to actually decline as interest rates fall, highlighting that borrowing costs are only one of many factors affecting private markets.

Sep 10, 2024 | valueaddpe.com | Cooper Smith

Interest rates are often cited as having a major impact on M&A activity, and it makes sense that private equity buyouts would be correlated with borrowing costs. However, statistical analysis shows that interest rates alone likely have little impact on private equity dealmaking (at least, in the US), according to research by Value Add. This post is for paying subscribers only Subscribe now Already have an account? Sign in