New York, NY, March 16, 2020 - RueOne Investments, LLC (RueOne) and Ceralen United, LLC (Ceralen) have formed a strategic partnership bringing both companies together to expand it’s platform into media, entertainment, retail, fashion, beauty, health and wellness, and the consumer sectors.
After more than three decades of growth, all signs point to a maturing private equity market. Global deal volumes have grown from around $30 billion in the mid-1990s to nearly $700 billion in 2015; the number of private equity firms nearly tripled between 2000 and 2016; and the amount of AUM under management has ballooned from almost $600 billion in 2000 to almost $2,500 billion today.
As direct and co-investments have gained in popularity among family office and institutional investors, investment firms have responded by offering a variety of options to meet this demand. But not all direct or co-investment opportunities are the same, and the challenges and pitfalls they present to an investor vary depending on the different pipes that source the deal. This piece considers the various sources for direct and co-investments to better understand the pros and cons of each so that investors – particularly family offices and small to mid-size institutional investors who often lack access to the best deals or sufficient resources to evaluate them – can better navigate this increasing complex and crowded landscape.
With public markets becoming increasingly expensive, family offices and institutional investors are turning to the private markets to meet their risk/return targets. While private equity funds have historically been the venue to access private markets for traditional LPs, there has been a desire to bypass the funds and go direct. As discussed in a recent Bloomberg article, investors have started to build out the capability to evaluate direct and co-investment opportunities, but most still prefer to participate in opportunities originated by their current GPs and given to them typically on a no fee no carry basis. In turn, PE firms use co-investment opportunities as a carrot to raise capital for their committed funds.
Everyday RueOne Investments speaks to investors, deal sponsors, asset managers, companies and deal providers from around the world in our effort to help institutional investors, family offices and select individuals find compelling direct investment opportunities. One of the topics that we seem to get asked with great frequency is: What does China want? Or, more specifically, what are Chinese investors thinking and doing with their capital? Based on our conversations with a variety of parties, here are some of our observations on the types of investments that Chinese investors are looking for.
First of New Discussion Series to Take Place on Thursday, February 9th @ 4pm EST
RueOne Investments(RueOne) will host its first Direct Investment Discussion Forum on LinkedIn’s Direct Investments & Co-Investments in Private Equity & Real Estate Group page (https://www.linkedin.com/groups/12009633) on Thursday, February 9th at 4PM EST. The Forum will provide a way for institutional investors, family offices, deal sponsors, asset managers and other interested parties to ask questions they have regarding direct investing, alternative investments, co-investment, the current investment landscape and other related topics. This will be the first of a series hosted by RueOne on the LinkedIn Group page.
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