Episode 31

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Published on:

10th Aug 2020

Ep. 31 Fireside Chat on Global PE Challenges & Opportunities

51 Labs hosted a fireside chat on global PE challenges & opportunities. 

TOPICS: (1) Developments in M&A and private equity across Asia, Europe, Africa, and the US, (2) Regulatory dynamics

See below for key takeaways from a unique panel of 3 global PE firms, a global investment banking advisor, and the largest & most active global PE legal practice.

Panelists:

  • BDA Partners, Euan Rellie, Co-Founder
  • Kirkland & Ellis, Duncan Enista, Partner
  • Cathay Capital, Andre Puong, Partner, $4bn AUM, 143 investments
  • DPI, Joanne Yoo, Managing Director, $1.6bn AUM, pan-African
  • Riverside Company, Bob Landis, Founding Partner (Origination), $10bn AUM, 650+ transactions
  • 51 Labs, Jordan Selleck, CEO & Co-Founder, a digital marketing agency for the middle market

 

Here are some of the key takeaways:

  1. Global buyout transactions fell 60% from January to April and transaction volume is now trending around 1/3 of the five-year monthly average
  2. Uncertainty in the US is hampering deal flow relative to other markets
  3. Deals are getting done, but largely for add-ons and platforms known pre-COVID
  4. Earn-outs: Not seeing a significant uptick in earn-outs; however, Duncan is seeing them as a way to get sellers back to the table when the valuations weren’t what they had hoped for during the lockdown
  5. Hong Kong: The mood is bleak, according to Euan. Firms are moving out and there’s a feeling that it’s quickly becoming less of the multinational hub that attracted people for decades. In the short term, tying Hong Kong closer to China might not be all bad. For example, Chinese companies which may have be reluctant to do IPOs in Western markets might favor listing in Hong Kong
  6. China: Doing most cross-border deals with China is incredibly difficult now. Also, 20 years ago you do a business meeting in a hotel lobby in China and you would find partners knocking on your door if you had a good product/brand in Western markets. Today, you have competitive local brands that are going to eat your lunch if you're not extremely aggressive and localize your business. You can't use the playbook of 20 years ago
  7. Africa: Joanne Yoo, Managing Director at DPI, made it clear that Africa is not as connected to the rest of the world so the pandemic hit later and caused less damage. DPI's deal activity is actually busier than before. Their portfolio companies have largely been deemed as essential businesses and, like many lower/mid market company in Africa, they hold more inventory than other markets
  8. What impact will the upcoming US election have on their business and strategies, based on a scale of 1-5? Joanne 2, Bob 3, Andre 3, Duncan 2, Euan 2
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About the Podcast

Investors & Operators
A Podcast by 51 Labs
The M&A market can be boring, but everyone has a story. The Investors & Operators podcast is about discovering the stories people were holding back, didn’t know how to tell, or forgot about. The goal is simple: fresh, authentic storytelling to bring people together in the M&A community.

With over 1M organic views and counting on LinkedIn, 51 Labs is disrupting the M&A market through the use of videography and content creation. In a market that longs for authenticity, 51 Labs helps strengthen your brand and tell your story. From concept to distribution, we strategize and produce thoughtful content to be used across a multitude of channels, to help you stand out in an otherwise traditionally boring market.

New episodes every other Thursday at 6:00am Eastern.

About your host

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Jordan Selleck

Founder. Recovering Investment Banker. 3x Entrepreneur. Philz Coffee Enthusiast.

Jordan Selleck is a recovering investment banker turned 3x entrepreneur. While teaching English in China, Jordan met an investment banker in a bar and before he knew it he’d spent six years in cross-border investment banking advising global corporates and private equity firms on M&A deals up to $250 million.

As much as Jordan loved investment banking, he always knew he was meant to do something more. In 2016, Jordan founded Debtmaven, a deal management platform for debt financing in the lower middle market. It was while he was marketing Debtmaven on LinkedIn that Jordan found his true passion: building meaningful relationships in the lower middle market.

Seeing over 50% of Debtmaven’s $450million+ in deals come from LinkedIn, he realized he’d found an untapped market and began his journey with LinkedIn consulting. Dozens of clients and a handful of extraordinarily talented employees later, 51 Labs is a thriving marketing agency for the lower middle market that produces captivating content and generates organic traffic across LinkedIn.

Jordan was born in San Diego, grew up in North Carolina and attended UNC-Chapel Hill. He has traveled to 32 countries, lived in China for 18 months, trains Brazilian Jiu-Jitsu, is a fourth-generation private pilot, SCUBA dives, speaks Mandarin Chinese, and is a husband and father of 2.