10+ hours of podcasts, in 5 minutes.
4 quotes from 1 episode on Private Equity Spotlight, each with a timestamped link to the source.
Erik Hirsch maintains that public markets offer no rescue for private equity assets. Most portfolio companies sit far below the $1 billion size threshold required for public trading.
The private equity industry recently experienced its second highest calendar year for absolute liquidity.
“On an absolute basis, last year calendar was the second highest year for total liquidity in the industry's history…”
An oversupply of general partners has diluted the available talent pool for limited partners.
“LPs don't need that many, and it's diluted the talent pool to some extent…”
From Erik Hirsch: Manager Dispersion Has Not Narrowed in 20 Years
Most private equity portfolio companies have enterprise values under $1 billion, keeping them below public market thresholds. Erik Hirsch mentioned that these exchanges provide no easy exit for private assets.
“The notion that the IPO market is gonna be the saving grace for the private markets is simply untrue…”
Value creation depends entirely on operational revenue and earnings growth. Erik Hirsch observed that multiple expansion and cheap debt no longer lift exit valuations.
“In order to achieve good returns, you're not getting a lot of multiple expansion…”
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The week's private equity podcasts, boiled down to one short Sunday read, for deal professionals, operating partners, and LPs.
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