Michael Hacker’s Post

Challenge: It’s the so-called “golden age” of private credit (fundraising) in the US/Europe…but (with investing) selectivity in credit selection is more critical today than ever before with (1) over-levered corporate balance sheets (almost 60% deals north of 5x, lots of maturities coming the next 2 years), (2) over-levered banks (commercial real estate eating up reg capital/ratios) and (3) over-levered US government with national debt >$34Tn & crossing 100% Debt-to-GDP… Considerations: (A) being high selectivity when building concentration (no one says they aren’t !!) and (B) diversification with a priority for cash flow (1) via geographic diversification like in Latin America, giving higher yield/spread in USD at 1.5-2x lower leverage with larger (generally more resilient) corporates (Juan Luis Rivera) (2) diversification via pooling of cash flows e.g. securitization for greater overall resiliency…including CFOs & structured solutions… Great to be discussing it all with intelligent, thoughtful GPs & LPs and market players from PIMCO to AlpInvest to Evercore to Thrivent and also seeing old friends! Chris Freeze, Freddie H. Lou, Andie Goh, Pramit Sheth !!

Looking forward to exchanging insights on the future of private credit with my fellow panelists at the upcoming Alternatives Investment & DealConnect Summit, hosted by @Private Markets Insider. A number of distinct themes have permeated both past and current credit cycles, and I’m excited to address forward-looking trends in what I’m sure will be a dynamic discussion.    #PrivateCredit #AlternativeInvestments #Magnetar #PrivateMarketsInsider

📢 Speaker Announcement 📢 Our CEO and Founder Joshua D. Rogers will be a featured speaker at this month's Private Markets Insider Alternative Investment & DealConnect Summit, in Arete's home city of Chicago. What makes us an expert on this topic? In addition to traditional wealth management products, Arete Wealth offers a bespoke alternative platform for qualified investors that features dozens of offerings including artwork, hedge funds, private equity, venture capital, real estate, and more. We're excited to continue leading these conversations about the evolving alts market. #alternativeinvestments #alternativeinvesting #institutionalinvesting #privatemarketsinsider #aretewealth

This week, our team at Madison 1031 Exchange attended the Blue Vault Bowman Alts Summit at the Omni PGA Frisco Resort in Texas! 👋🏽 As a proud Elite Partner of Blue Vault Madison Capital Group Holdings was excited to help unite the essential voices in the growing alternative investments industry! 🎉 Pictured: Michael Crimmins, President of Madison 1031 Exchange . . . #bluevaultaltssummit2024 #AltsSummit2024 #bluevault #alternativeinvestments #altinvestments #altinvesting #investing #investinginrealestate #investingadvice #madisoncommunities #gostoreit #madisoncapitalgroup

Will continuation vehicles eat funds for breakfast? As continuation vehicles increase in size and the market becomes ever more liquid for the highest quality assets, and sponsors, a natural question is: what does this trend mean for alternatives? This will divide opinion, but a very robust CV market presents risk for LPs only investing in closed-ended, blind pool funds. GPs will increasingly be able to take their best assets out of funds and hold them for longer in single asset structures, while slower-burn portfolio companies stay put in traditional funds. Over time, GPs will increasingly look like conglomerates. How long until we see a mid-market US or European GP with 2/3 of its capital represented by 3-5 large continuation vehicles? For LPs however, there's an opportunity to build a portfolio of high quality, large direct positions, accessed through existing fund relationships, with very low blind pool risk. It may well be that funds become efficient origination vehicles for both GPs and LPs to identify the best assets that they want to hold for 5+ years outside of traditional fund structures. #privateequity #secondaries #continuationvehicles #alternatives #emergingmanagers

Pic from yesterday's The Global 51 - Family Office Club panel discussions and mixer, fostered by Bridget Kilroy in Los Angeles. Pictured are Bridget Kilroy interviewing Paul Spradling, overview of his respected private equity best practices and methodologies. Other conversations included Andrew Fielding facilitating VC Panel with Shamin Walsh (BAM Ventures); Kirby Winfield (Ascend VC); and Alex Goldberg (AdAstral Funds). Andrew Fielding facilitating VC Panel with Gary Post (The K Funds) and Chris Bostick (OCV Partners). #familyoffice #singlefamilyoffice #venturecapital #privateequity #emergintechnology

Invest with solid performers. Invest in things that you understand or are interested in. Start young and be consistent. Surround yourself with people that share your values and are already in a place that you'd like to be while at the same time bringing up those that are not at your level.

Data from PJT Partners, Jefferies, Evercore, Setter Capital Inc., and Campbell Lutyens suggests a rapidly growing venture & growth secondary market, which may even reach $48B by 2030.   This doesn't strike me as particularly surprising. 😎   Though not a perfect proxy to volume of course, there is an immense amount of activity being covered by our news team - Easily 2x the number of stories Y/Y!   I wonder how many we'll be covering this time next year? 🤔 #Secondaries #SecondaryMarket #AlternativeInvestments #PrivateMarkets

In the current fundraising environment, VCs and LPs are adjusting their scrutiny of potential investments. 🔎 Sapphire Partners Partner Elizabeth "Beezer" Clarkson shared her perspective on how with The Wall Street Journal’s Brian Gormley in today’s WSJ Pro VC newsletter, highlighting that LPs have refined their focus to dive deeper into portfolio performance beyond just top-line numbers. Read more insights from Beezer below and the full newsletter here: https://lnkd.in/eTMRWFhy  👇 #VentureCapital #InvestmentStrategies

Great discussion with leading portfolio managers on the latest trends and strategies in the small and micro cap markets. Check out our full lineup of Spring 2024 conference panels and webcasts here: https://lnkd.in/g_sHCaiX #investing #irchat #investorrelations #investors #financialmarkets #smallcap #microcap