Pure-play private equity or diversified asset manager - what next?

A highly regarded upper mid market European private equity firm asked us to assess potential growth opportunities for their business. Working closely with the Managing Partner, Development Director and Head of Investor Relations, we developed a set of parameters for a range of new geographical markets and parallel asset classes. Our brief was to then bring together a full range of supporting materials to assist in the assessment process, giving the team an objective view on the potential that each area offers.

What is the dealflow potential in a new market?

Private equity is increasingly ‘going global’. Our client was firmly established in the major Western European territories of UK, France, Germany etc, but wanted to understand what potential existed in:

Our analysis brought together industry statistics, macro-economic trends and took a view on development potential given tax, regulatory and legal environments and the level of entrepreurship. This was overlayed with the unique competitive dynamics of a given market: some markets are trickier to enter than others due to the dominance of key players.

If we moved from pure-play private equity, what asset classes should be considered and why?

Some of the world’s most successful private equity franchises have been highly successful in pushing out into other alternative asset classes. Our analysis covered the potential in:

What can be learned from our competitors?

Finally, careful consideration was given to our client’s ‘competitor peer group’. What markets and asset classes do they cover? When were these operations established? How successful have they been?

Taking stock

Initially, we presented our findings and recommendations to the executive committee. This resulted in an early set of conclusions which the Managing Partner was keen to develop with his deal teams and external advisors at the firm’s ‘off-site’. We were invited in to lead a strategy session at this event.

To find out more about projects like this, please contact Marc Whiteside:

marcwhiteside@arborsquare.com
Tel: +44 20 7993 2008