Mergermarket | Dealspeak EMEA – Slice of Pie: New Entrants Gobble Up GP Stakes in Europe
Originally posted by Mergermarket on April 24, 2023.
Historically, North American investors were the main players that acquire stakes in private equity (PE), credit and infrastructure general partners (GPs) in Europe; however, recently European investors have been increasingly participating in deals and taking small GP stakes.
In a GP stake, an investor typically takes a 10-30% passive or active stake in a sponsor which gives it access to lucrative management fees and future carry. At the same time, the vendor benefits as it achieves some valuation objectives; such as partial monetization, funding growth, planning for succession, or increasing co-investment requirements; and gets liquidity on its balance sheet.
Antoine Dupont-Madinier, Managing Director in Lincoln’s Financial Institutions Group, commented, “GPs are increasingly trying to solve multiple objectives at the same time.”
In the current macroeconomic environment with fewer PE exits, extra liquidity is very attractive as there has been much less capital returned to vendors and limited partners. Liquidity also helps GPs raise commitments to their own funds in a difficult fundraising environment.
Additional insights can be found in the original article.
Lincoln International’s Antoine Dupont-Madinier shares with Mergermarket how general partners are trying to solve multiple objectives while dealmaking in today’s macro environment.
- Sign up to receive Lincoln's perspectives
Meet Professionals with Complementary Expertise
I am enthusiastic about creating sustainable growth and the highest value for our clients, and strive to leave a positive footprint beyond any successful M&A transaction.
Managing Director | Management Board MemberFrankfurt
I enjoy leading clients and realizing their objectives, while structuring solutions to issues that are both intriguing and challenging.
Managing Director | Head of SwitzerlandZurich
I am inspired by working with entrepreneurs and innovators who feel passionately about what they are creating.
Managing DirectorSan Francisco
Lincoln International adds Kensuke Nakatsuka as Managing Director
Lincoln International, a global investment banking advisory firm, is pleased to announce that Kensuke Nakatsuka has joined as a Managing Director in the firm’s Tokyo office. Kensuke has over 20… Read More
Education Technology & Services Market Update: Q1 2023
As it has for more than 10 years (COVID-19 aside), April once again was home to the education mergers and acquisitions (M&A) market’s largest annual gathering of executives, investors and… Read More
Cybersecurity Report: Q1 2023
Consecutive quarterly sector mergers and acquisitions (M&A) deal activity rose slightly in Q1 2023 to 44 reported cybersecurity transactions, from 41 in Q4 2022. However, year-over-year Q1 declined from 68… Read More
Real Deals | Healthcare M&A Resilience
What trends have you seen in the last quarter in relation to valuations in the healthcare space? Matthew Lee: It’s early days to get an accurate read on valuations as… Read More
Lincoln International advised Deutsche Private Equity and private shareholders on its sale of a majority stake in Green Mobility Holding to Rivean Capital
Lincoln International advised Founder, private shareholders, TUI Group and Brockhaus Private Equity on its sale of Peakwork to Vela Software, a subsidiary of Constellation Software
Lincoln International advised Medisolv on receiving a strategic investment from BVP Forge
Lincoln International advised Colmec Group, a Scandinavian distribution platform for truck tire lifecycle management, on its sale to Norvestor
Lincoln International advised Ambienta and other shareholders on the sale of Next Imaging to Azimut Libera Impresa
Lincoln International advised Private shareholders on the sale of ISM Heinrich Krämer to Protective Industrial Products, a portfolio company of Odyssey Investment Partners
Lincoln International advised Deutsche Invest Capital Partners on the sale of Loibl Förderanlagen to Martin Group