Pathway Capital Management

Special thanks to our employees, clients, and managers for your continued support. We are excited to achieve more milestones together in 2025!

In Q3, we saw the Fed implement the first rate cut since March 2022, following similar actions taken by many central banks globally. Positive economic growth pushed global equity markets higher and continued to boost private equity deal activity. While the fundraising market has continued to pose challenges, private equity managers have remained active in targeting complex corporate carve-outs and take-privates, particularly in the large-cap and middle-market segments. The secondaries market has served as another bright spot in 2024 and is forecast to hit an all-time high amid growing interest from a diverse range of investors. Looking ahead, we expect the industry to remain disciplined overall in the coming quarters and believe that experienced managers with a proven approach to creating value will continue to perform well in the prospective market. To read more, check out our full environment report, click here: https://bit.ly/3Vn8ZOh

Join us at the upcoming Markets Group conference in Frankfurt on Thursday, where Stefan will be presenting “Long Winter or Early Spring?: What Are the Current Conditions and Forecasts for Private Equity?” Given that market conditions are shifting, and uncertainties lie ahead, Stefan will explore the current temperature of the market and why now might be the right time to commit to private equity. He will also share his perspective on where GPs are finding value, when distributions may pick up, and how LPs should approach the current landscape. This forum brings together pension funds, insurance companies, foundations, sovereign wealth funds, consultants, family offices, and other leading investment professionals from across Europe. We look forward to seeing you there!   To learn more about the event, please visit: https://lnkd.in/gpCJxym7

We are proud to sponsor Markets Group’s 7th Annual Germany Institutional Forum on December 5 in Frankfurt, Germany. Our own Stefan Goettl will be presenting at the event, keep an eye out next week for more details! For more information on the event, please visit: https://bit.ly/3Z1VZif

Don’t miss Preqin’s “The Future of Private Capital Performance” webinar tomorrow to gain valuable insight into key trends and how they will impact the market. Our Brett Richardson hopes to see you tune in!

We are excited to share our 3Q24 Private Market Environment Report. The secondaries market has served as another bright spot in 2024 and is forecast to hit an all-time high amid growing interest from a multitude of investors.   Check out Pathway’s Market Minisode below, covering the highlights of this quarter’s report and sign up to receive this and future editions here: https://bit.ly/3pz2U0j

Pathway is pleased to announce that it has closed on a $155 million customized fund of funds for an Asia-based institutional investor. This fund will focus on building a diversified portfolio, emphasizing primary fund investments and co-investments in both the small and middle markets globally. The fund signifies a continuation of Pathway’s more than 30-year history of investing in the private markets, which includes more than $120 billion in commitments in over 105 customized portfolios for investors around the globe.

Join Pathway’s Benjamin Dreyer and Jérôme Simon at SuperInvestor 2024 in Monaco, November 5–8, 2024. We are looking forward to the packed, content-driven agenda that includes market intelligence and insights from speakers across the private capital universe and academia, as well as from independent innovators from the world of sport. We are excited to dive into the key summits at the event, including the private debt and secondaries summits, and to network with GPs and LPs from around the globe. This year, key topics being tackled include LP allocations, small-cap and mid-cap strategies, ESG and impact investing, and private wealth. We are excited to see you there! To learn more about the event, please visit: https://bit.ly/3C2MRCa

Tuesday Morning Reflections 💡   Recently, Alex Casbolt delivered a talk at the 4th Annual Italy Investors Forum.   In his talk, Alex highlighted the shifts in the private equity landscape since the 2021 peak. Pathway believes slowing distributions have created a more challenging fundraising environment. But there are green shoots: despite a decline in investment activity, GPs have continued to find several opportunistic ways to deploy capital, and private credit has provided stability in a constrained lending environment.   While the chill of market uncertainty is still lingering, there have been encouraging early signs pertaining to investment activity, valuations, exits, and IPOs and we believe that there are still opportunities for managers to generate attractive performance through uncertain environments.   Special thanks to the Markets Group organizers for inviting us to this fantastic event.

We are excited to share that Pathway’s Bruce Emken, will be speaking at CFA Society Los Angeles’s event, “Santa Barbara Lunch & Learn: Potential Pitfalls in Private Equity Investing” in Santa Barbara, California, October 17, 2024.   The session will aim to identify the most common drags on private equity returns, compare fund structures, explore the nuances of secondary and co-investment deal flow, and discuss the potential negative impact on returns that can be avoided. We will wrap up the event with an open Q&A session—we look forward to answering your questions! To learn more about the event, please visit: https://bit.ly/409757j