Let's dive straight into the top stories from this past week...
Advent International Closes on $26B Fund
According to a recent report, Boston, MA-based private equity firm Advent International has finished raising capital for its $26B Fund. The closing of the fund comes on the heels of rising inflation, an economic slowdown and supply chain disruptions. Chairman and Managing Partner of Advent, David Mussafer, outlines that the fund will target roughly 25 to 30 companies, primarily in North America and Europe. Below, McKinsey outlines how private equity has fared in relation to other alternative asset classes, netting more than a 30% IRR from the top 25% of funds.
“We had two years of incredible performance in the stock market that was way ahead of the underlying [company] performance, and you’ve seen that reversed out in the first quarter of this year...That swing puts enormous pressure on [chief executives] as their boards are saying, ‘What are you going to do to raise our stock price?’ I think you’re going to see a tremendous amount of take-privates."
According to multiple reports, Chicago-based wealth manager and family office, Cresset Asset Management, has announced plans to merge with Meristem Family Wealth. Meristem operates out of Minnetonka, MN as an advisory firm with over $5B in assets. The combined multi-family office will span 15 locations in nine states, forming one of the largest players in the private wealth management space. Now serving more than 1,100 clients, Cresset provides a number of family office services including personalized wealth management, private investing, peer-to-peer learning and more.
Rising Interest Rates Put Pressure on Apartment Owners
Over the past few years, real estate buyers and apartment hunters have both driven up building prices to historic levels. With interest rates rising, this has put immense pressure on landlords' ability to pay back loans. This combination gives owners no choice but to increase the monthly cost for its tenants. Nitin Chexal of Palladius Capital Management worries that many of these investors will be in over their heads if rates continue to rise or a potential market freeze occurs.
“You’re basically running to catch up to your debt...the recent rise in mortgage rates means investors need to run even faster."
Monte Carlo, a data observability platform, has raised $135M in its Series D funding round that included participation from multi-family office ICONIQ
Germany-based single-family office Pirate Impact has taken part in a $105M Series C deal with Zolar, an online provider of solar energy solutions
Maynard Webb's family office, Webb Investment Network, engaged in a Series B follow-on investment with Noyo, a health insurance tech startup, totaling $45M
Sunny Hills, Australia-based single-family office, Square Peg Capital finalizes on a $14M Series B deal with Neara, a 3D interactive model platform
DOB Equity closes on a $1.3M deal with Kenya-based healthcare company Zuri Health
The Count of Billionaires Continues to Rise, Legislation Looms
According to a new report from Oxfam, an additional 550+ people have claimed billionaire status since the Covid-19 pandemic began. This has led to political leaders, including President Joe Biden, to put forward their own proposals for an increased federal tax rate. One proposal includes applying an unrealized capital gains tax on publicly traded securities. Another approach would be to eliminate the ability for families to take advantage of the step-up cost basis adjustment that allows for individuals to avoid paying taxes on the increases in the value of assets over their lifetimes.
Cetera Financial Group Adds Two RIAs Totaling $400M
Cetera Financial Group has announced it has added a pair of advisories, Sonnenfeld Financial Group and Lincoln Capital. Cetera connects financial professionals and institutions with regional teams and provides infrastructure and operational support. Terry Sonnenfeld, President at Sonnenfeld, had this to say about the acquisition:
“The people at AdvisorNet and Cetera have been extremely welcoming and collaborative, and we are encouraged by the planning resources and tools that this new affiliation provides”
FINTRX delivers an industry-leading suite of private wealth data and research solutions to the alternative investment space and private capital markets. Engineered to help clients identify and access family office and RIA capital intuitively, the FINTRX platform ensures accurate and updated data and research on 850,000+ private wealth records globally. To learn more request a demo here.
FINTRX, 12 E 49th St., New York, NY 10017, United States, (617) 517-0789