Your Experts for the European Market

🌞 30°C and a buzzing crowd in Zurich – it must be time for our annual tradition at @Private Equity Insights! This week, POLARIS Managing Partner @[Stefan Brägger](urn:li:person:tz4DJW2pSM) had the pleasure of moderating the panel "𝐋𝐏 𝐏𝐫𝐞𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬: 𝐀𝐧𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐍𝐞𝐱𝐭 𝐖𝐢𝐧𝐧𝐞𝐫" at PEI Zurich.

A big thank you to our LP panelists – @[Cyril Demaria](urn:li:person:639bkeYPlU), @[Marie Pestalozzi](urn:li:person:l9MJFaqwHO), @[Marina S.](urn:li:person:NyyT1dD6qQ), and @[Laurent D.](urn:li:person:5ijoF\_\_Ggd). The discussion was candid, timely, and rich with insight. Here are our key takeaways:

🔹𝐌𝐚𝐫𝐤𝐞𝐭 𝐭𝐢𝐦𝐢𝐧𝐠 𝐢𝐧 𝐏𝐄 𝐫𝐞𝐦𝐚𝐢𝐧𝐬 𝐚 𝐦𝐲𝐭𝐡 – consistent deployment across vintage years, not short-term timing, is still the winning strategy, according to our panelists.
🔹𝐄𝐮𝐫𝐨𝐩𝐞’𝐬 𝐦𝐨𝐦𝐞𝐧𝐭?While the U.S. still dominates many LP portfolios, Europe has delivered stronger realized performance over the past five years. Sentiment is improving, with multiple European GPs recently raising oversubscribed funds.
🔹 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 – helpful or harmful? Public initiatives like the Tibi program in France aim to drive local innovation, but they can also distort markets and lead to suboptimal outcomes. It's a double-edged sword.
🔹 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐫𝐞𝐦𝐚𝐢𝐧𝐬 𝐭𝐢𝐠𝐡𝐭 –unconventional exits and continuation funds are still viewed cautiously by LPs, unless there's clear alignment and value for all stakeholders.
🔹 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐞𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠 𝐢𝐬 𝐨𝐮𝐭; 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐯𝐚𝐥𝐮𝐞 𝐜𝐫𝐞𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐢𝐧 –our panelists agreed that the winning playbook has changed. With leverage and multiple expansion less available going forward, true value creation must come from growth and transformational strategies. 
🔹 𝐓𝐨𝐩-𝐝𝐨𝐰𝐧 𝐬𝐞𝐜𝐭𝐨𝐫 𝐭𝐡𝐞𝐦𝐞𝐬 𝐦𝐚𝐭𝐭𝐞𝐫 –LPs are increasingly focused on adding sector specialists to their \(mature\) portfolios. Energy transition, industrial tech, and healthcare were identified as attractive investment opportunities and potential future winners. 
🔹 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐢𝐬 𝐚 𝐡𝐨𝐭𝐬𝐩𝐨𝐭 – demographic trends, rising digitization, and inefficiencies offer investment potential, particularly in tech-enabled and value-based care. But high valuations and regulatory complexity require disciplined underwriting.
🔹𝐒𝐦𝐚𝐥𝐥 𝐚𝐧𝐝 𝐦𝐢𝐝-𝐜𝐚𝐩 𝐫𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 –these segments have historically outperformed during downturns and offer greater exit flexibility compared to large-cap buyouts.

👋 A huge thanks to the audience who chose our session over two others – and to our panelists for the thoughtful exchange. And of course, thank you to Private Equity Insights for the kind invitation and for hosting another standout event in Zurich!

{hashtag|\#|PrivateEquity} {hashtag|\#|LPInsights} {hashtag|\#|Zurich} {hashtag|\#|PEI2025} {hashtag|\#|PolarisInvestments} {hashtag|\#|NextWinner} {hashtag|\#|PrivateMarkets}

𝗟𝗶𝗲𝗰𝗵𝘁𝗲𝗻𝘀𝘁𝗲𝗶𝗻, 𝘁𝗼𝗱𝗮𝘆 𝗶𝘀 𝗮𝗹𝗹 𝗮𝗯𝗼𝘂𝘁 𝘆𝗼𝘂! Happy National Day from the entire POLARIS team! 🎉

On this special day, we raise our glasses to the world's sixth-smallest nation, a true Alpine gem that continuously amazes us.🍾

Liechtenstein, you size may be small, but your spirit and resilience are larger than life! 💪

August 15 is a double celebration for this incredible country – not only does it mark the Assumption Feast, but it's also the birthday of the late Prince Franz Josef II, a leader who left an indelible mark on Liechtenstein's history.

Our team in Vaduz feels the pulse of Liechtenstein's vibrant culture and innovative spirit
every single day, and we couldn't be more grateful to be a part of this amazing community. 🙌

So, here's to you, Liechtenstein!🥂

{hashtag|\#|POLARIS} {hashtag|\#|investment} {hashtag|\#|assetmanagement} {hashtag|\#|Vaduz}

🏃‍♂️Join the 𝗣𝗢𝗟𝗔𝗥𝗜𝗦, @[Axiom Asia Private Capital](urn:li:organization:473149) and @[Portfolio Advisors](urn:li:organization:9429580) Sightseeing Run at IPEM 2024 in Paris:

Kickstart the day with a burst of energy and explore Paris like never before!

Lace up your running shoes for a sightseeing run that will take us through the heart of the City of Light. Our route will lead us from the majestic Arc de Triomphe, past the iconic Eiffel Tower, and along the scenic Seine Promenade.

‍

𝗥𝘂𝗻 𝗗𝗲𝘁𝗮𝗶𝗹𝘀:

🗓️ 𝗗𝗮𝘁𝗲/𝗧𝗶𝗺𝗲: Tuesday 10th of September at 07:00 am

⏱️ 𝗥𝘂𝗻 𝗹𝗲𝗻𝗴𝘁𝗵: Approximately 1 hour

🏃‍♀️ 𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝗶𝗲𝘀: Leisure 6km / Sport 10km

➡️ If you're interested in participating, let us know below in the comments and we'll contact you with more details. Alternatively, you can email us directly at 𝗲𝘃𝗲𝗻𝘁𝘀\@𝗽𝗼𝗹𝗮𝗿𝗶𝘀-𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀.𝗰𝗼𝗺 to sign up and get more info. 📩

Feel free to share this information with fellow runners or directly tag them in the comments! We look forward to meeting you in Paris!

P.S. Each participant will be provided with a running t-shirt.

{hashtag|\#|POLARIS} {hashtag|\#|AxiomAsia} {hashtag|\#|PortfolioAdvisors} {hashtag|\#|IPEMParis2024}

𝗛𝗮𝗽𝗽𝘆 𝗦𝘄𝗶𝘀𝘀 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗗𝗮𝘆!

From the iconic Matterhorn to the tranquil shores of Lake Geneva, Switzerland’s landscapes are as diverse as its languages. 🏔️🌊 Today, we celebrate the culture, innovation, and resilience that makes Switzerland unique.

At 𝗣𝗢𝗟𝗔𝗥𝗜𝗦, we've been part of this vibrant country for over 16 years. Our journey has been a mix of challenges and triumphs, each one shaping us into who we are today. Whether navigating the financial landscape or exploring Switzerland’s natural beauty, every moment has been worthwhile.

As we celebrate today, let’s raise a toast (or enjoy some Swiss cheese 🧀) to the place we proudly call home. Here’s to many more years of growth, and new adventures!

{hashtag|\#|POLARIS} {hashtag|\#|investment} {hashtag|\#|zurich} {hashtag|\#|switzerland} {hashtag|\#|assetmanagement}

🚀 Exciting Insights from the 11th edition of PE Insights Conference 2024 in Zurich! 🇨🇭

Last week, our Managing Partner @[Stefan Brägger](urn:li:person:tz4DJW2pSM) moderated a panel discussion with Swiss investors Maddalena Orlandini, @[Alexander Hesseling](urn:li:person:xpXtWd1C1e), @[Thomas Gnaegi](urn:li:person:UBarr1fI8i) and @[Cyril Demaria](urn:li:person:639bkeYPlU).

Here are the key takeaways:

1️. 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 𝗳𝗼𝗿 𝗣𝗘 𝗿𝗲𝗺𝗮𝗶𝗻𝘀 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲: The majority of the panelists, supported by a quick survey of the audience, are convinced that the 2024-25 vintages will be good years for private equity. It’s clear that professionals in our industry tend to be optimistic, seeing the glass half full \(when did you last hear from a PE manager that this vintage will be worse than the last?\)

2️. 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗿𝗲𝗺𝗮𝗶𝗻: Despite the positive outlook, fundraising remains difficult. Asset managers are slowly realizing that the days of ever-growing fund sizes and reaching the hard-cap easily won’t come back so quickly, if ever. GPs must now fight for LPs’ attention, focus on returning capital to investors and stand out in a very crowded and competitive fundraising market. However, there are opportunities with new investors who are building portfolios entering the PE asset class, particularly in Switzerland and Germany.

3️. 𝗦𝗰𝗮𝗿𝗰𝗶𝘁𝘆 𝗼𝗳 𝗲𝘅𝗶𝘁𝘀: Light at the end of the tunnel?: Liquidity from PE portfolios is not expected to improve significantly over the next 12 months. However, some improvements have been made as GPs are becoming more innovative with continuation vehicles and dividend recaps.

4. 𝗟𝗣𝘀 𝗿𝗲𝗺𝗮𝗶𝗻 𝗶𝗻 𝗮 𝗯𝗲𝘁𝘁𝗲𝗿 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝘃𝘀 𝗚𝗣𝘀: The pendulum has swung in favor of LPs and this situation is expected to continue over the coming years. While access to top-tier managers was difficult in 2020-21, the current situation has made it easier for LPs to access top managers, get access to co-investments and negotiate more favorable terms, and several panelists were surprised of how much more attention they got over the last few years. Despite this shift, the 2/20 model remains largely unchallenged.

5. 𝗠𝗶𝗻𝗼𝗿𝗶𝘁𝘆 𝘀𝘁𝗮𝗸𝗲 𝘀𝗮𝗹𝗲𝘀 𝘄𝗶𝗹𝗹 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲: The trend of selling minority stakes to outside investors, either to strategic investors or newly formed pools of capital, is expected to continue. Most of our panelists expect GPs will continue using these exit windows as a tool to manage transition, finance commitments, or investments into new strategies, and they seemed relatively relaxed, as long as the interests with them as investors are aligned.

Feel free to connect directly with Stefan Brägger to discuss these insights further! 🤝

{hashtag|\#|PrivateEquity} {hashtag|\#|Fundraising} {hashtag|\#|LPs} {hashtag|\#|Investments} {hashtag|\#|SecondaryMarket} {hashtag|\#|IndustryInsights}

📝 𝗣𝗢𝗟𝗔𝗥𝗜𝗦 and Axiom Asia Private Capital are excited to have contributed to the latest Absolut\|private edition by Absolute Research: Our article, "Asiatisches Private Equity im institutionellen Portfolio," delves into the exciting investment opportunities presented by the robust growth of Asian economies.📈

Authored by Alex Sao Wei Lee, Debbi Sutuntivorakoon, and Ernest Ong from Axiom Asia, alongside our very own Rolf Dreiseidler from POLARIS, this paper offers valuable insights into the current geopolitical and macroeconomic landscape of the region. We explore the significance of Asia for institutional investors and present strategies to capitalize on the region's growth potential. 🇩🇪 While the article is in German, we highly recommend downloading the e-paper from the Absolute Research website to access this insightful content:👉 https://lnkd.in/eCN\_MZcN

𝗔 𝗳𝗲𝘄 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗮𝗿𝘁𝗶𝗰𝗹𝗲:

1️📈 𝗔𝘀𝗶𝗮'𝘀 𝗚𝗿𝗼𝘄𝘁𝗵 𝗠𝗮𝗿𝗸𝗲𝘁: Asia, home to 60% of the world's population and projected to hold 65% of the global middle class by 2030, is a dynamic growth market with GDP growth forecasts for countries like India, Indonesia, and China significantly higher than those of the Western world.

2️🌏 𝗨𝗦-𝗖𝗵𝗶𝗻𝗮 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗧𝗲𝗻𝘀𝗶𝗼𝗻𝘀: The geopolitical tension between the US and China, especially regarding Taiwan, remains a challenge. However, the strong economic interdependence between China and Taiwan mitigates potential conflicts and supports the current status quo.

3️💼 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗶𝗻 𝗔𝘀𝗶𝗮: Private equity in Asia offers significant advantages over Western markets due to lower reliance on debt and higher growth rates in sectors such as healthcare and IT. This makes the region an attractive investment option, particularly considering diversification and long-term return benefits.

As Asia continues to be a driving force in the global economy, understanding the nuances of its private equity market is crucial for investors seeking to diversify and optimize their portfolios.

To learn more about Asian private equity, leave us a message below or reach out to us directly. We also have a few hard copies to give away...

{hashtag|\#|polaris} {hashtag|\#|investment} {hashtag|\#|privateequity} {hashtag|\#|privateequityasia} {hashtag|\#|axiomasia}