January 29, 2025, Stockholm

Pedersen & Partners and CMS Wistrand co-hosted the Stockholm Private Equity Breakfast today. The event offered a dynamic setting for representatives from local and international PrivateEquity, VentureCapital, and Infrastructure funds to engage in discussions, debates, and networking.

The panel discussion was jointly moderated by Poul Pedersen, Executive Chairman, Pedersen & Partners, and Louise Rodebjer, Partner Corporate/M&A, CMS Wistrand.

The panelists included:

• Fredrik Karlsson, CEO, Röko
• Martin Lagerblad, Managing Director, Nalka
• Staffan Mörndal, Partner, Verdane Capital
• Erik Nobel, Managing Director, Levine Leichtman Capital Partners (LLCP)
• Bita Sehat, Senior Investment Director Impact Ventures, Trill Impact
• Göran Svensson, Managing Director – Head of Corporate Finance Sweden, Nordea
• Jan Wiklund, Joint Managing Partner, Armada Credit Partners.

Key takeaways from the event:

• Exits are challenging, leading to longer holding periods. Limited Partners (LPs) are concentrating on DPI (Distribution to Paid-In-Capital), and private equity fund managers are employing continuation vehicles, secondaries, part-exits, etc., to boost the liquidity flow to LPs.
• Fundraising is easier for large-cap private equity funds but challenging for smaller ones. ESG remains significant for Nordic funds; however, it's less emphasized when interacting with US investors.
• Margins are reduced and risk increased in the private credit market. With fewer new deals, there is a greater emphasis on refinancing existing portfolio companies.
• VC and PE portfolio firms are prioritizing profitability and cash-flow over growth. For VC portfolio firms the size and timing of the next fund raising has become more uncertain.
• Deal activity remained weak in 2024. It was +50% lower compared to the record year of 2021.

In summary, the Stockholm Private Equity Breakfast highlighted key industry challenges and strategies. The expectation is that 2025 will have more deal activity than 2024.
 

November 6th, 2024, Amsterdam

Pedersen & Partners and CMS Netherlands co-hosted the Benelux Private Equity Breakfast today. The event provided a lively and agile atmosphere for representatives of notable local and international PrivateEquity, VentureCapital and Infrastructure funds to discuss, debate, and network.

The panel discussion was co-chaired by Poul Pedersen – Executive Chairman, Pedersen & Partners, and Mark Ziekman – Partner, CMS Amsterdam.

The panel members were:

• Simone Brummelhuis – Partner, Borski Fund
• Jean Diercxsens – Partner - Head of Belgium & The Netherlands, Kartesia 
• Robert Falk – Partner, Bencis Capital Partners
• Marco Gulpers – Head of Corporate Finance M&A NL, ING
• Mels Huige – Partner, Active Capital Company
• Reinaert Molenaar – Partner, 365 Capital
• Patrick Polak – Co-founder and Managing Partner, Newion Partners
• Jesse van Schouwenburg – Managing Director, Investmens, CVC DIF

Key takeaways from the event, as summarised by Hans Lodewijks, Client Partner, Country Manager for Netherlands at Pedersen & Partners:

📉 Overall Benelux M&A activity is stable compared to last year, but there is a decline in big deals. Corporate buyers have been more active than private equity funds.
🕒 Deals take longer to close, and more deals are being abandoned.
💼 Exits are difficult in the current market, resulting in a longer holding period.
💰 Fundraising is easier for large-cap private equity funds but challenging for smaller funds.
📈 Portfolio management skills are critical to help portfolio firms grow and perform.

The panel highlighted the following critical value-creation actions in 2024: 

• Add-on acquisitions
• The ability to raise prices
• Controlling costs
• Ensuring that portfolio firms maintain their focus

🔄 A majority stake in the Dutch infrastructure fund manager DIF was taken over by CVC in 2024.
🌱 Finally, ESG considerations continue to be of paramount importance in Benelux.
 

August 13th, 2024, Johannesburg

Executive Summary 

The key takeaway points summarise the key insights from a recent panel discussion on private equity in Africa, held in Johannesburg. The discussion highlighted several critical areas, including exits, fundraising, regulatory approvals, value creation, ESG/DEI, and talent development. As the African private equity landscape evolves, investors are increasingly focused on flexibility, strategic partnerships, and impact investing. This summary outlines the opportunities and challenges that shape the future of private equity in Africa.

Introduction 

Private equity (PE) in Africa is gaining traction as investors recognize the continent’s potential for high returns and growth. However, navigating this landscape requires a nuanced understanding of local markets, regulatory environments, and socio-economic factors. The Johannesburg panel discussion brought together industry leaders to explore these dynamics and share insights on achieving success in African private equity. 

Overview of Private Equity in Africa 

Africa’s private equity market has experienced significant growth, driven by an increasing number of deals, a rise in investment opportunities, and a focus on impact investing. Key markets include South Africa, Nigeria, Kenya, and Egypt, with sectors such as technology, healthcare, and consumer goods attracting the most interest. Despite the opportunities, challenges remain, including regulatory complexities, political instability, and a scarcity of experienced talent. 

Key takeaways from the event:

Exits 

• Preferred Exit Strategies: While sales to management are less favored, trade sales and strategic exits are more common. Recapitalizations have become prevalent due to assets held for over seven years. 
• Buyer Synergies: Identifying synergies with potential buyers is crucial. Investors should collaborate with those lacking a platform in Africa to understand their needs. 
• Strong Management Teams: A robust management team is vital for successful exits, as is educating buyers on local market conditions. 
• Successful Secondaries: There have been notable successes in secondary sales, particularly in smaller deals that are easier to execute. 
• Quality over Scale: While scale matters, the quality of the business is paramount. Investors should focus on enhancing the intrinsic value of their assets.

Fundraising 

• Challenging Market Cycle: Despite challenges, fundraising is achievable with a strong track record and positive LP relationships. 
• Role of DFIs: Development finance institutions (DFIs) play a significant role, accounting for approximately 80% of funding. Their sector-focused teams improve GP interactions.
• African Pension Funds: African pension funds are increasingly interested in PE, emphasizing the need for investments that benefit local communities. 
• Tailored Fundraising: Customizing pitches to the audience and maintaining transparency with LPs are essential strategies. 
• Co-Investment Opportunities: Offering co-investment opportunities to LPs has proven beneficial. Another strategy involves raising funds around a key asset. 

Regulatory Approvals 

• Changing Regulatory Environment: Investors must stay informed about shifting regulatory landscapes affected by economic and technological forces. 

Value Creation 

• Control and Alignment: Achieving value creation requires alignment with management and proactive decision-making. 
• Impactful Investments: Investors should consider the impact they can bring to businesses, including empowering leadership teams and retaining talent through ESOPs.
• Courageous Conversations: Open dialogues and alignment with management should occur early in the investment process. 

ESG/DEI 

• Diversity and Inclusion: GPs have made progress in improving gender balance and diversity. ESG considerations have evolved from mere box-ticking to a practical, common-sense approach. 

Talent 

• Succession Challenges: Succession planning remains a challenge, and talent in the African PE/VC community is scarce. 
• Empowering Junior Team Members: A successful strategy involves empowering junior team members, trusting them, and providing opportunities for growth. 

Panelists: 

• Florent de Boissieu – Partner, Adenia 
• Stuart Bradley – Managing Partner, Phatisa 
• Arshad Essa – Head, Nedbank Private Equity 
• Maruping Mangwedi – Executive Director, Affirma Capital 
• Nonhlanhla Mvuyana – Investment Manager, Sithega 
• Vuyo Ntoi – Co-Managing Director, African Infrastructure Investment Managers (AIIM) 
• Edward Pitsi – Co-Founder and CEO, Infinite Partners 
• Samantha Pokroy – Founder and CEO, Sanari Capital 

The panel discussion was co-chaired by Kabelo Dlothi – Director, Co-Head of Corporate & Commercial, CMS and Michael Al-Nassir – Partner, Head of Private Equity Practice APMEA, Pedersen & Partners.

July 26, 2024 - Johannesburg, South Africa - The second Sub-Saharan Africa Private Equity Breakfast hosted by Pedersen & Partners and CMS South Africa is set to take place on the 1st of August in Johannesburg. This year's event will delve into the theme: "Navigating the African Investment Landscape: Opportunities, Trends, and Strategies." 

Private Equity experts from a range of domestic and global institutions will gather to explore critical topics, valuation in African markets, strategic exit strategies, value creation and the latest trends in investment, finance, and M&A activities in Sub-Saharan Africa. Key sectors to be addressed includes energy, digital infrastructure and food security. 

This event is a significant milestone for stakeholders in the private equity and legal space as it fosters crucial discussions and robust debate about private equity in the region. Such conversations are vital for expanding the market and providing a platform for those poised to enter, or re-enter. The potential for the private equity industry in sub-Saharan Africa is immense, and events like this ensure that the topic is top of mind with relevant stakeholders. 

Kabelo Dlothi, Director, and Co-Head of Corporate & Commercial at CMS South Africa and Michael Al-Nassir, Partner, Head of Private Equity Practice APMEA at Pedersen & Partners will be co-chairs at the event. 

“This event is important for the development of South African businesses as it equips them with the necessary tools and knowledge to grow," says Kabelo Dlothi. “By knowing your options and being aware of the opportunities and associated risks at hand, you give your business and yourself room for opportunity and development.” 

"Through the joint CMS-Pedersen & Partners Private Markets events held in over a dozen countries, we invite investors and entrepreneurs from various Private Markets asset classes to share their experience,” says Michael Al-Nassir. “The upcoming event in Johannesburg aims to foster the further development of the investment ecosystem on the African continent and bring together senior Private Markets professionals to network in an informal setting.” 

About CMS 

CMS lawyers work across sectors and borders in more than 40 countries worldwide to deliver advice to you wherever you operate. We see ourselves as more than just legal advisers. We are your business partners. Our focus is on helping you mitigate risk and benefit from innovation, enabling your business or organisation to thrive. 

For media queries please contact Alecia Stander: alecia@irvinepartners.co.za. 

About Pedersen & Partners 

Pedersen & Partners is a leading global Executive Search and Leadership Consulting firm. We operate 56 wholly-owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values of Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. 

July 1st, 2024 - São Paulo, Brazil - Pedersen & Partners, a leading global Executive Search and Leadership Consulting firm, is proud to announce that it has become a member of ABVCAP, the Brazilian non-profit organization that represents the Private Equity and Venture Capital industry and promotes the development of long-term investments. 

"We are delighted to join ABVCAP. With Pedersen & Partners' extensive global experience in the private equity market, we look forward to contributing to local discussions. Moreover, through our interactions with other members, we aim to enhance our readiness to support organizations in the private investment industry with their human capital challenges,” stated Leonardo de Souza, Client Partner, and Country Manager - Brazil. 

Pedersen & Partners is a leading global Executive Search and Leadership Consulting firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values of Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

June 11th, 2024, Frankfurt am Main

Pedersen & Partners and CMS co-hosted the German Private Equity & Venture Capital Breakfast on 11th June 2024, in Frankfurt am Main. The event provided a lively agile atmosphere for representatives of well-known local and international private equity funds to discuss, debate, and network.

The panel discussion was co-chaired by Poul Pedersen – Executive Chairman, Pedersen & Partners, and Tobias Schneider – Partner, CMS Germany.

The panel members were:

• Anja Böhme – Investment Director, Halder
• Fritjof Franz – Partner, capiton AG
• Linda Hoegener Schinwald – Director, Deutsche Beteiligungs AG
• Jenz Krane – Head of M&A, Commerzbank AG
• Philipp von Mitzlaff – Partner, NORD Holding

Key takeaways from the event, summarised by Guido Bormann, Partner, Head of Western Europe and Country Manager, Germany at Pedersen & Partners:

• The German private equity market has seen a decline in deals in 2023, which has unfortunately failed to pick up in H1 2024. However, there is hope for improvement in H2 2024 and 2025.
• Several other private equity markets in Europe are outperforming Germany, such as Poland and Southern Europe.
• External factors that have had a negative impact on the market include increased interest rates and energy prices. There is uncertainty and risk regarding the outcome of elections in several European countries and the USA.
• A scarcity of exits is resulting in longer holding periods. Continuation vehicles are being used to ensure liquidity for LPs.
• While fundraising is easier for large-cap private equity funds, it remains challenging for smaller funds.
• In a rapidly changing macro environment, there are several windows of opportunity for attractive exits that should not be missed.
• ESG considerations continue to be of paramount importance.

Pedersen & Partners is a leading global Executive Search and Leadership Consulting firm. We operate 54 wholly-owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values of Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

June 5th, 2024, Abu Dhabi

Last week, we had the privilege of co-hosting the Abu Dhabi Private Markets Investment Breakfast, together with CMS Abu Dhabi. The event provided a lively atmosphere for nearly 100 representatives of leading local and international PE, VC and Sovereign Wealth funds.

The panel members were:

• Bilal Baloch – Partner, Shorooq Partners;
• Mirza Beg – Founding Partner, Ruya Partners;
• H.E. Dr. Tariq Bin Hendi – Senior Partner, Global Ventures;
• Rima Hadid – General Counsel, Emirates Investment Authority;
• Yağız Özgüven – Executive Director Private Investments, Waha Capital;
• Jean-Philippe Syed – Partner, X12 Capital;
• Miray Zaki – Managing Director, Gulf Capital;

The panel discussion was co-chaired by Graham Conlon – Partner, CMS Abu Dhabi, and Michael Al-Nassir – Partner & Head of Private Equity APMEA, Pedersen & Partners.

Key takeaways from the event:

• The MENA region is experiencing growth fuelled by local factors as well as global geopolitical factors. The business sentiment in the region is rather positive, and a continued upward trend is expected. There has been an increase in the number of M&A transactions in the MENA region, and an increase in interest from corporate investors.
• The UAE has shown itself to be resilient, and other major markets in the region are growing (KSA) or showing growth potential (Egypt). Overall, the UAE has seen a significant inflow of capital notwithstanding the geopolitical uncertainty, and there has been little direct negative impact.
• The UAE has proven to be a maturing market, with stable leadership and clear direction. This has allowed the country’s economy to remain stable and show substantial growth, with potential for more in the future.
• The UAE is a sound launchpad in the MENA region for startups due to the ease of doing business, a culture of early adoption among consumers/users, and a “regional test lab” approach.
• The region’s sovereigns are increasingly looking at #PrivateMarkets, are increasingly investing directly or co-investing in Emerging Markets (South & Southeast Asia, Africa, etc.), and at the same time increasingly recognising the importance of the SWFs investing in-country.
• There have been a number of IPOs in the GCC, but those have usually been SoEs. The private markets have seen a predominance of strategic exits and secondaries, and there have also been examples of funds buying entire portfolios.
• Healthcare in the MENA region is attracting investor interest – not only in health services, but also in HealthTech and Life Sciences R&D. There is a significant amount of R&D in the region.
• FinTech businesses have seen growth in the MENA region; they address structural inadequacies and have demonstrated consistent growth for investors and visible exit paths.
• Other key sectors that are expected to flourish include food production and food security, renewable energy, digital infrastructure and education.
• Many start-ups claim to have “AI” in their business, but the reality is that only a minority genuinely do. It’s key for their credibility that start-ups looking to fundraise are transparent about the core drivers of their business – they should not try to sell themselves as doing something which they actually aren’t.
• While the central banks have been hesitating to lower interest rates, there is pressure to do so. The markets are expecting it to happen, although it is difficult to predict when.

Pedersen & Partners is a leading global Executive Search and Leadership Consulting firm. We operate 54 wholly-owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values of Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

April 18th, 2024, Vienna

Pedersen & Partners and CMS co-hosted the Austria & CEE Private Equity & Venture Capital Breakfast today, welcoming nearly 100 attendees from Austria, CEE and the other DACH countries. The event provided a lively and agile atmosphere for representatives of well-known local and international private equity funds to discuss, debate, and network.

The panel members were:

• Thomas Brake – Investment Director, capiton AG;
• Franz Hörhager – Founding Partner & Chairman, Accession Capital Partners;
• Benjamin Hubner – Managing Partner, Sophora Unternehmerkapital;
• Daniel Jennewein – Managing Director, AG Capital;
• Gregor Nischer – Managing Partner, MP Corporate Finance GmbH;
• Philipp Schupfer – COO, Board Member, Invest Unternehmensbeteiligungs AG;
• Anthony Stalker – Partner, CEECAT Capital;
• Katerina Zenz – Head of Austria & CEE, Mutares.

The panel discussion was co-chaired by Poul Pedersen – Executive Chairman, Pedersen & Partners, and Alexander Rakosi – Partner, Head of Private Equity, CMS.

Key takeaways from the event are summarised by Katharina Kaiser, Country Manager Austria at Pedersen & Partners:

• After three years of significant external impact from Covid, the war in Ukraine and inflation, the market is now “normalising” and deal activity is picking up.
• Add-on acquisitions are on the rise.
• Focus sectors include Industrial, Business Services and Life Sciences. For special situation funds, the Automotive sector is interesting.
• Fundraising is currently easier for large cap private equity and credit funds.
• In a rapidly changing macro environment, there are windows of opportunities for attractive exits. The value creation plan needs to be flexible in order to ensure that these exit opportunities are not missed.
• ESG is very important, with a focus on actual implementation over formalities. Portfolio firms with strong ESG policies gain a talent attraction benefit.

Pedersen & Partners is a leading global Executive Search and Leadership Consulting firm. We operate 54 wholly-owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values of Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

November 16th, 2023, Madrid

Today, Pedersen & Partners, in collaboration with CMS, hosted the Spanish Private Equity & Venture Capital Breakfast. The event fostered a dynamic environment, facilitating engaging discussions and valuable networking opportunities for international private equity leaders.

The panel discussions were led by:

• José Arango López de Letona – Partner, Teset Capital
• Leticia Bueno – Partner, Co-Head of the Junior Fund, Oquendo Capital
• Manuel Blanco – Founding Partner, ABE Capital Partners
• Jose Megia – Investment Manager, Charme Capital Partners
• Juan Eusebio Pujol – Operating Partner, Miura Partners
• Agustin Vitorica – Founder & Co-CEO, GAWA Capital

The panel discussion was co-chaired by:

• Alvaro Arias – Partner, Head of Private Equity Practice, Pedersen & Partners
• Ignacio Zarzalejos – Partner, Corporate/M&A, CMS

Here are the main key findings summarized by Alvaro Arias:

• Amidst a volatile macro environment, this year posed challenges in fundraising. Inflation and soaring interest rates escalated debt expenses, affecting potential investments and M&A activities. Spain, however, emerged as an inviting market with a rising GDP and positive global recognition. • The Private Equity landscape witnessed increased capital infusions in portfolio companies while experiencing a 30% dip in M&A operations. Amid rising prices, profitability risks loom large in future investments. Despite this, the industry remains optimistic for growth in 2024, pinning hopes on potential interest rate declines.
• Spain's Impact Investment scene has surged tenfold, underlining a remarkable shift toward responsible investing and burgeoning emphasis on ESG considerations. Long-term infrastructure investments benefited from rising interest rates, focusing on enduring returns.
• Central to successful investments is the alignment of management teams. CEOs' investment alongside Private Equity partners underscores long-term commitment and alignment.
• The rise of Operating Partners in Spanish Private Equity signifies a strategic move toward closer alignment and hands-on management for optimized profitability.

Pedersen & Partners is a leading global Executive Search, Leadership Consulting and Board Services firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

November 8th, 2023, Amsterdam

Pedersen & Partners together with CMS Netherlands hosted today the Benelux Private Equity & Venture Capital Breakfast. This well-attended event created a lively and agile atmosphere from renowned international private equity funds to discuss, debate, and network.

The panel discussions were led by

• Erik Fuchs – Head of Benelux, Ufenau Capital Partners
• Daan Gankema – Investment Director, Inflexion
• John Luijs – Partner, DELTA Equity Partners
• Brigitte van der Maarel – Managing Partner Karmijn Kapitaal
• Gerald Nijdam – Managing Director, Lazard
• Richard Reis – Partner, Argos Wityu
• Wouter Snoeijers – Senior Managing Director, Investment Originations
• Sander van Woerden – Founding Partner, Lexar Partners

The panel discussion was co-chaired by

• Mark Ziekman – Partner, CMS Amsterdam, and
• Poul Pedersen – Executive Chairman, Pedersen & Partners.

Here are the key takeaways summarized by Hans Lodewijks, Country Manager, Pedersen & Partners:

• External factors, such as high-interest rates, military conflicts, and low unemployment rates, have negatively impacted deal activity.
• While quality deals still attract considerable attention and good valuations, they are becoming less common.
• Leverage has become more expensive, and the IPO exit path is currently closed. The use of continuation funds is increasing
• Many funds have lots of dry powder, and new Benelux funds are still being raised
• ESG considerations, including diversity, are considered highly important among Benelux private equity and venture capital players. 

Pedersen & Partners is a leading global Executive Search, Leadership Consulting, and Board Services firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.