Five key charts on the macroeconomic and political outlook in Germany
Panel - Deal strategies in a slowdown
The pace of private equity buyouts slowed in the second quarter of 2019, with the DACH region experiencing its fourth consecutive quarterly decline in entry multiples to an average 9.9x. The lower mid-market and small-cap space offer an attractive value proposition versus higher multiples for €1bn+ buyouts. In Germany, the industrials sector is seeing increased competition for strong assets which is maintaining prices for sellers. Meanwhile buyers are on the lookout for automation and connectivity in industrial sector targets.
How might buyers find value in more complex industrials and automotive targets, requiring carve-outs or turnaround?
What are the prospects for minority investments alongside founder owners?
Live Regulatory Q&A
In this interactive session, we ask the audience to rank the main regulatory factors impacting private equity funds through a live-poll, such as Brexit, CFIUS, increasing complexity of fund structures and ESG. The expert speakers will then tailor their comments to address the highest priority concerns.
Panel - Private equity as shareholder activists
The rise of US-style shareholder activism in Europe has meant listed companies are having to become increasingly adept at dealing with hedge fund agitators. Now private equity funds want in. Germany is a key target geography for take-private activity, with its family shareholder base and industrial conglomerates. In this session we explore how the origination and due diligence process differs from a private target, and whether hedge funds are allies or enemies for PE houses in take-private situations. We also look at the future of the public markets, as relative private company valuations continue to rise.
Breakout discussions will consider risks and opportunities for private equity investors in different industries in Germany. Participants will be asked to contribute to informal conversations with an expert table host before a short feedback session to the main room. It will provide a chance to build deeper connections with industry colleagues and gain first-hand insight to the drivers of future activity.
Panel - Targeting returns over the long-term
With competition for primary deals so fierce, sponsors are finding new ways to remain invested in high-quality companies and broaden their offerings to LPs. The most traditional route is partial exits that allow private equity houses to keep skin in the game on assets they know have additional upside. Other trends are emerging, however. GPs are using secondary capital for single asset funds, whilst others are testing LP appetite for dedicated long-term funds with different risk/return profiles and investment timeframes. In this panel, we ask about the relative merits of the different approaches and prospects for future activity.
Chairperson's closing remarks
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