SuperReturn International is the world’s largest private equity event. Held for the 27th time annually, the four-day event brings together 4,000 the world’s most influential GPs and LPs – to discuss opportunities and challenges within the industry. This year, SuperReturn International took place between 4-7 June at the InterContinental Hotel, Berlin. Here are seven key takeaways from the event.
1. Fundraising trends are encouraging
Despite concerns over interest rates and valuations, LPs are increasingly putting cash reserves to work. And this trend should become more prevalent in the fourth quarter of 2024 following the anticipated reduction in interest rates in the US election. More dry powder flowing into the market may create a more favourable environment for mid-market private equity firms, many of which have lagged behind larger firms in deals recently. It could also be beneficial for start-up businesses seeking capital for growth and expansion.
2. Private debt is leading the way
Private debt continues to dominate the fundraising narrative, with the sector topping €1.5 trillion in AUM in 2023. In today’s financial environment, investors are drawn to the increased control and flexibility private debt offers relative to traditional fixed income securities as well as the high yields available. It’s worth noting that Preqin – which recently agreed to be acquired by BlackRock in a $3.2 billion deal – forecasts that global private debt AUM will reach $2.8 trillion by the end of 2028. If you’re looking for solutions in this area of the private markets, IQ-EQ’s Global Private Debt and Credit Desk has a dedicated team with expertise across the entire debt and credit spectrum.
3. Data management is in focus
GPs are increasingly recognising that robust data management is a key driver of operational success. By leveraging data effectively, they can gain valuable insights, improve decision-making, and achieve better outcomes for their investors. Data management capabilities are also emerging as a critical consideration for LPs when selecting a GP. You can find more information on IQ-EQ’s data services here.
4. North American GPs are looking at Europe
US GPs are currently looking at utilising the National Private Placement Regime (NPPR) to market to European LPs, despite the challenging macroeconomic backdrop in Europe today. Europe represents the second-largest pool of capital after the US and the NPPR provides a framework allowing non-EU Alternative Investment Fund Managers (AIFMs) to market Alternative Investment Funds (AIFs) to professional investors across the European Union. Note that the NPPR is governed by each EU member state’s national regulations, and not by unified EU regulation. Those seeking assistance with NPPR regulation may wish to contact our AIFM services team.
5. Family offices are investing directly
Private equity remains popular with family offices. And today, many firms are setting up their own investment teams to invest directly in the asset class. Family offices are also making investments in crypto-assets and commodities such as gold in an effort to further diversify their investment portfolios. At IQ-EQ, we can support family offices with multi-asset class administration and reporting tools as well as risk management and compliance services.
6. Gender diversity is steadily increasing
Gender diversity in private equity continues to increase. This was illustrated by the 300+ attendees at the SuperReturn Women in Private Markets Forum, which took place on 3 June. IQ-EQ is committed to diversity and inclusion and has developed IQ-EQ Launchpad, a unique initiative that aims to support women launching their first fund. This offers preferential service terms, access to a global network, knowledge sharing, and more.
7. LPs are demanding more from GPs
When selecting a GP, LPs are prioritising transparency, robust operational practices, and strong relationship management teams today. This stems from a growing desire to have greater confidence that their capital is being managed effectively. To meet these evolving expectations and secure capital, GPs should leverage technology to streamline their operations and enhance their reporting capabilities. They should also aim to build trust with investors.
If you’re interested in learning more about any of the topics mentioned in this article, don’t hesitate to contact us.
About the author
Andrew is Head of Sales, UK, for IQ-EQ, based in London. He has 20 years of industry experience and has specialist expertise in alternative investment and family offices, covering private equity, venture capital, real estate, infrastructure, private debt and hedge fund strategies. Andrew holds a degree in Economics from the University of Technology in Sydney and is a Chartered Alternative Investment Analyst (CAIA).
