Evolving Market Dynamics and Strategies in Private Markets

In the changing market dynamics with a different cost of capital, leveraging P&L and balance sheet levers is crucial for creating returns. Managers are now focusing on increasing EBITDA and revenue growth as a significant part of return creation. Building deep relationships with executives is becoming essential for value creation. The industry is witnessing more thoughtfulness and productivity in transactions, especially transitioning towards public to private deals. A shift in time allocation towards portfolio companies and strategic investments is observed, emphasizing the need for thoughtful decision-making and avoiding wastage of resources. The market is experiencing a thin transaction market with fewer committed bidders, highlighting the importance of being selective in investments.