Hugh MacArthur

😃 Want to learn more about have to navigate #privateequity landscapes as an #executive? Click to read this article by Gerald O'Dwyer, 'The PE Guru,' now! https://buff.ly/4b4e1Fj   💡To Learn More about BlackmorePartners at: https://buff.ly/42iNmB3

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Reflecting on the enriching discussions at the recent PEWIN - Private Equity Women Investor Network CIO Roundtable in Boston. It was a joy to hear from panelists Letitia Johnson (Amherst College), Deb Shufrin (Colby College), Abigail Wattley (Williams College), and moderator Sarah Samuels, CFA, CAIA (NEPC, LLC). Some of my key takeaways: From the CIO perspective, alignment with the board is paramount. Portfolios experience ebbs and flows, emphasizing the necessity of a board committed to long-term strategies. Data underscores the repercussions of misalignment—allocators often undermine value by prematurely exiting positions for liquidity needs or reacting impulsively to market fluctuations. Across the board, CIOs prioritize firms that can articulate their competitive edge, foster sustainable organizations with top-tier talent, culture, and succession planning, and demonstrate agility in evolving markets. A robust LP base providing long-term support and institutional guidance is also crucial. Success isn't about funding billionaires—it's about supporting determined individuals committed to sustained success. Privates demand more than short-term commitment—they require a relentless desire to succeed over time. For a deeper dive into the role of CIO, I highly recommend The Counting House by Gary Sernovitz. #CIOInsights #PEWINRoundtable #InvestmentStrategies

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An Entrepreneurial Board of Directors A Value Maximization Model For Public Companies #corporategovernance #governance #boardsofdirectors #shareholdervalue #performance #capitalism #institutionalinvestors

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PE - Key Lesson for Boards & Value Maximization Interesting book relating to public companies, investors & shareholder activism - however, there is 1 important lesson and a reminder for all of us in PE: #1: Always engage CEOs & company management collaboratively - constructive & collaborative work yields better results P.S. If this works for shareholder activism in public equities (e.g., hedge funds), it works even better in private equity value maximization, where relationships and collaboration drive Win-Win success. --------- #pe #privateequity #investing #business #ceo #finance

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Great article - 100% agree with this. My question for the APAC market on the three trends highlighted in the article; Are APAC GPs willing to be more sophisticated with how they interact with the secondary markets and are they are willing to compromise on price when selling through secondary options? I think this is also a massive question facing other asset classes in APAC, Venture Capital for one - do funds also need to be more creative with exit opportunities as well given the usual methods are less tangible right now?

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Divestment requirements have a very real cost. This reduces the ability of endowments and foundations to support their mission driven enterprises. As the list of divestment demands grow, at what point do the consequences outweigh the perceived benefits? Hiding at the end of this article is the below quote: Golden admitted the divestment had undermined Princo’s returns, saying the endowment “would have been better off” otherwise. But he pointed to a bigger concern: the pressure to “keep adding things to divest from”. “Fossil fuels are necessarily part of getting to where the overall economy needs to be [and] it would be impossible for the world to not use fossil fuels tomorrow,” he said. “Divestment is a pretty weak tool to change the economy.” https://lnkd.in/g3SeC8rg #energy #investing #vc

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Another fascinating read from my colleague Henry McVey and team that highlights the exponential growth of the alternatives industry over the last few decades. At KKR, we expect it to even surpass the current estimate that this industry will reach $24 trillion by 2028, and Henry highlights the key reasons for this, including the growing need for private capital to fund the massive investment needs in both existing and new infrastructure to support the mega trends of digitalization and energy transition. While the alternatives industry has a bright future, the report highlights how this must be managed by a commitment to disciplined portfolio construction, including the timely deployment of capital: no such thing in private investing as “timing the market”! For more insights, read the full report here: https://go.kkr.com/4gGI3BY

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I am fully on board with the article from the Sorenson Impact Institute detailing the authentic combination of purpose and profession behind impact investing. It's really worth calling out from the piece that as assets under management (AUM) of sustainable and impact investing are growing faster than in any other sector, investment organizations are responding to this accelerating client demand. #ImpactInvesting

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Why diversification and creativity matter in today’s credit markets A persistent supply/demand imbalance continues to shape the credit landscape. This creates opportunities for those willing to think outside the box. Here’s how investors are responding: Leveraging creative and scaled origination to uncover value in growing market segments. Allocating to non-correlated credit assets like asset-based finance (ABF) to their portfolios. As highlighted in #KKRCredit’s Q3 Market Review, segments like private ABF are gaining momentum. These non-correlated private asset classes—especially higher-yielding options —are becoming essential to strategic asset allocation. Why? Because like the tortoise in the race, they offer steady progress toward long-term success. https://go.kkr.com/4fxoM5d

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Interesting view on impact investing :) In this episode of Deal Volume, McKinsey’s podcast on private markets, host and McKinsey partner Brian Vickery speaks with David Su, a managing partner and cohead of the impact investing team at Apax. The two discuss the evolution of impact investing, the importance of measuring impact, the case of AGI portfolio company Swing Education, and a key lesson for impact investors to keep in mind. An edited version of their conversation follows.

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I had the pleasure of speaking recently at the PEI Operating Partner Forum in London about the challenges and opportunities to support our portfolio companies in building greater resilience. Thank you to Jim Corey from Blueridge Partners, and my co-panelists Alan Roux, Peter Colman and Kristen Paladino. Some thoughts from this session: -There is further opportunity to deepen our collaboration with our deal colleagues and portfolio management teams on what will move the dial on performance - active joint problem solving is key to unlocking value with greater speed; -Cash is king in this environment where leverage is going to be more expensive for longer - our CFOs are front and centre, along with trusted partners in our ecosystems; -Ensuring our portfolio companies have the right talent in place to anticipate and deal with multiple continued headwinds is critical; -There are some innovative opportunities to drive value through new digital technologies, like Gen AI, which we should experiment with over the coming period. It's not tomorrow's problem.

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Our 2023 Sustainable Investing Report is already available. In 2017, CDPQ first announced its climate targets. In 2021, we decided to be more ambitious, and we raised them. Our 2023 Sustainable Investing Report published today shows that we are very close to meeting them faster than expected! On the diversity front, 57% of CDPQ’s actively managed public companies count at least 30% women on their Boards, an increase of more than 39% in three years, and 30% of its nominee directors are women.

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Honored to be featured in Vishesh Raisinghani's article on Mergers and Acquisitions - themiddlemarket.com discussing the changing dynamics in mid-market private equity.     With fierce deal competition among firms of many sizes, we have aligned our focus on attractive opportunities to launch partnerships with businesses and ambitious business leaders who are aligned with our core values of #BuildingBetterTogether !     Thank you, Vishesh, for speaking with me and shedding light on this important topic.    #PrivateEquity #MidMarket #Strategy #UnityPartners 

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#KKR #Varsity_Brands Private equity firm KKR & Co agreed to acquire Varsity Brands, a U.S. maker of sports uniforms and school yearbooks, from buyout firm Bain Capital for about $4.75 billion, including debt, people familiar with the matter said on Wednesday. KKR will own Varsity Brands through its Americas private equity fund, the sources said, requesting anonymity because the deal has not yet been announced. KKR has committed to offering rank-and-file employees of its North America portfolio companies equity in these companies, and will do so with Varsity Brands, the sources said. This is an incentive the corporate world traditionally reserves for senior executives. https://lnkd.in/dnFHhGH2

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AI will play a large role in Private Capital at the fund level, in how they do deals and in how they digitally transform their portfolio companies.  If funds are on the fence with how GenAI can create value, explore this PwC perspective that breaks down 6 myths about GenAi that will make you rethink everything: https://lnkd.in/gjW5S_d2  #PrivateEquity #PrivateCapital #GenAI Sanjay Subramanian I Nate Barnes I Toby Popplewell I Jennifer Richards

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The digitalization of Private Capital accelerated in 2024, with firms advancing significantly in their digital maturity. Alongside, the technology and services that support this growth have also rapidly evolved. To help firms navigate these changes, Holland Mountain reviewed the operational challenges and goals of a record number of Private Equity and Private Debt firms.   In my latest article, I reflect on the key themes that emerged in 2024 and priorities for 2025:    ▶ Scaling #AUM efficiently with outsourcing and automation  ▶ “Deleveraging” investment teams  ▶ Advancing #AI readiness with better data management  ▶ Eliminating shadow bookkeeping  ▶ Offering white-glove services to #investors   Read our recap on how we helped asset managers achieve their operational goals 👉 https://lnkd.in/esWhcYFQ Barnaby Piggott | Harpreet Lakhan | Tim Friedman | Jonathan Connelly #privateequity #privatemarkets

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🔍 Want to land a role in private equity or create your own deal? Our playbook for executives offers a comprehensive roadmap to enter the PE field, emphasizing networking, strategic positioning, and leveraging resources effectively. Read more here: https://buff.ly/4flClVy 💼 Learn more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton here: https://buff.ly/4cpKqHv #PrivateEquity #CareerGrowth #ExecutiveRoles #BlackmorePartners #PECareers

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🚀 Pleased to share the latest issue of Growthink Capital's M&A Observatory! Here are key highlights: 🤝 Deal Activity: March 2024 saw 784 closed M&A transactions in the U.S., indicating continued momentum. 🏢 Top Industries: Commercial Services, Enterprise Software, Media & Information Services, Consumer Services, and Distributors. 💰 Revenue and Earnings Multiples: Median multiples of Revenue stood at 3.3x, while EBITDA boasted a median of 12.8x, indicating healthy valuations. 💼 Biggest Deals: Notable acquisitions included a $28 billion deal, showcasing strategic moves in connectivity solutions. 📈 From companies founded in the 1800s to those emerging in 2023 and 2024, M&A activity spans across generations and industries, displaying the dynamism of the market 🎯 To explore the sale of your company, liquidity for shareholders, or growth-by-acquisition opportunities please get in touch directly with me, Eddie Clay or Jeff Jones

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