Explore a new report from Apogem Capital investigating the impact of private equity ownership on employment in small and mid-sized companies.
Find inside: an analysis of 20 years of portfolio company data to understand the potential impact of PE ownership on job creation, the relationship between EBITDA and employment growth, and employment growth through recessions at PE backed companies.
Read the full report here.
Explore a new report from Apogem Capital and Coalition Greenwich analyzing how middle market private equity sponsors are navigating an environment characterized by volatile public markets, geopolitical uncertainty, and persistently high inflation. The report features trends and insights from more than 100 interviews with managing directors and partners at middle market private equity sponsors in the US.
The research revealed sponsors in the middle market could benefit from less competition for assets and more consistent opportunities for attractive exits relative to larger peers and sponsors operating in other segments of the market. Overall, participants articulated five strategies they are adopting to maximize the advantages in the middle market to negotiate challenging market conditions, outlined below:
- Build diversified portfolios emphasizing recession-resilient sectors
- Focus on creating value through operational improvements
- Lean into Environmental, Social and Governance (ESG) and Diversity and Inclusion (D&I) initiatives
- Capitalize on fundraising by larger private equity sponsors for attractive exit opportunities
- Cultivate relationships with reliable partners
Based on the findings, it is clear that middle market sponsors are preparing for a challenging period ahead. We believe cycle-tested managers with unique value-add should be well-positioned to navigate this complex environment, mitigate risks, and potentially produce attractive results.
View the full report here.
Apogem Capital believes that ESG considerations can help provide better risk-adjusted returns to investors over the long term, and we are committed to continually advancing and improving responsible investing practices.
View our full report here.
Explore the current state of private markets and potential opportunity in the US middle market in Apogem’s inaugural mid-year outlook. Find inside: an overview of the macro environment and risks to returns, performance of private markets during prior recessionary periods, and the evolution of this segment since the Global Financial Crisis.
View Full Report Here.
Each quarter, we survey managers across the New York Life Investments platform to gather views, identify priority themes, and pressure-test investment ideas.
The rapid return of abundant liquidity and high valuations in private markets has been a focus for our U.S. managers. Despite the likelihood of modestly rising interest rates in the coming years, factors driving demand for private asset classes are likely to endure, raising concerns about future sources of return.
The story is slightly different in Europe where decentralization, geographic fragmentation, and a still-maturing market provide ample opportunity to harvest an illiquidity premium, particularly in the mid- and lower-mid market.
While the illiquidity premium may be durably lower in some markets in years ahead, the business risk premium for investors is alive and well.
This piece examine show the oft-cited “search for yield” is playing out in a new economic cycle, how managers are adapting, and priorities for excelling in a highly competitive market.
View Full Report Here.
About New York Life Investments Alternatives
New York Life Investments Alternatives LLC (“NYLIA”) is a registered investment advisor that provides comprehensive capital solutions and other alternative strategies to a broad range of institutional clients. NYLIA is comprised of three highly specialized, alternative investing boutiques: GoldPoint Partners, Madison Capital Funding, and PA Capital, collectively managing over $35 billion in assets, as of 7/31/21.*
Q3 2021 – The COVID-19 crisis forced middle market private equity sponsors to make rapid changes to core business and investment processes to keep their businesses running and their portfolios intact. Because many of these changes proved successful under the most trying circumstances, some will remain in place long after the pandemic recedes, permanently altering the industry.
To better understand how the crisis affected the middle market private equity industry, and how sponsors responded to COVID-19-related challenges, New York Life Investments Alternatives (NYLIA) partnered with Coalition Greenwich to conduct more than 100 in-depth interviews with senior professionals at U.S. middle market private equity sponsors.
This report presents the complete results of that research, including an assessment of the most important changes triggered by the crisis across core functions such as investing, deal sourcing, transaction financing, exit strategies, and fundraising. It also provides a deep analysis of which changes will persist into the post-pandemic era, as well as key learnings, including:
- A sharpening of the investment process
- New ways of using technology
- The importance of relationships
- Opportunities in ESG and DEI
View Full Report Here.
About New York Life Investments Alternatives
New York Life Investments Alternatives LLC (“NYLIA”) is a registered investment advisor that provides comprehensive capital solutions and other alternative strategies to a broad range of institutional clients. NYLIA is comprised of three highly specialized, alternative investing boutiques: GoldPoint Partners, Madison Capital Funding, and PA Capital, collectively managing over $35 billion in assets, as of 7/31/21.*