Interview

Challenging fundraising conditions and the growth of secondaries are leading to shifts in the LP-GP dynamic, say Davis Polk’s Sijia Cai and Alisa Waxman.

Healthcare’s growth potential and breadth of underlying sub-sectors are driving secondaries activity in the industry, says Linden Capital Partners’ Tony Davis.

The scale opportunity presented by consumer spending means there are always areas offering growth and resilience, according to Pierre-Axel Botuha, partner and co-head of the French private equity team at 3i.

The harsh economic backdrop for industrials has pushed operational discipline up the agenda for PE firms, notes MiddleGround Capital’s founding and managing partner John Stewart.

The institutional capability to convert an investment thesis into excess returns and sustainable enterprise value is the defining differentiator in PE performance, argue EFESO’s Andrea Mantegazza and Fabian Rodriguez.

Longer PE timelines, complex transactions, a difficult exit environment and the rise of AI are upending sponsors’ value creation priorities, say KPMG’s Brett Shisler and Carole Streicher.

As private markets become more data-rich, managers need to shift from gathering and reporting it to using it to improve performance, says Karine Litou, head of private capital at BNP Paribas’ Securities Services business.

Clear communication with management teams and a relationship built on trust are vital in these hands-on transactions, argue Helen Williams of Triton Partners and Trench Group’s Bahadir Basdere.

In a more discriminating environment, pressure testing is becoming crucial to getting a sale over the line, says Frank Steinherr, global private equity co-head at McDermott Will & Schulte.

While spin-out sourcing and diligence can be challenging, there is significant upside when you back the right managers early in their firm-building journey, says Taproot Capital’s co-founder and CEO, Eric Zoller.