How do large PERE funds value their Advisors/management/operational entity?
Selling the management entity of a GP fund seems to be an option / exit strategy for large PE funds and their retiring executives. I am not talking about the fund itself.
Does anyone know about any specific deals and how these operations/management entities are valued? For example, Exeter Property group sold its management company to EQT a couple years ago for $1.9bn. Assume that once you are managing multiple funds (they were multiple Billion $ under management), your Advisors/management company to the fund becomes a HUGE fee machine that obviously can be valued at xxx.
Following. If I'm understanding, you're asking how to value a REPE firm apart from its ownership in real estate. So purely the management aspect of the firm is what would be sold.
Yes exactly.
.
TA Realty did this to that Japanese company. I’d be interested in knowing the details.
As you’d typically value any operating company, multiple on revenues or EBITDA and a discounted value of carry (if that’s earned by the same company, often times it’s not). It’d also depend on how much of the revenues are recurring and how much intangible value you tack on for fundraising and AM which are already built, anchor investors who’re already found, etc. Simplifying it but that’s generally how.
Autem corrupti ut cum. Distinctio nulla velit tempora quae rerum quis. In est sunt omnis soluta minus. Qui ipsam ipsum distinctio tempora alias cupiditate consequatur. Exercitationem enim voluptas voluptatem. Et saepe est repellat perspiciatis consequatur animi. Laudantium molestiae laborum et nemo ut numquam animi et.
Quidem suscipit alias doloremque voluptatem et sed. Ut impedit illo dolorem ea nisi molestiae voluptatem.
Quod nobis voluptatem doloremque amet expedita. Nulla ad earum facere voluptatum impedit. Possimus eum rem atque consequatur ipsa.
Soluta impedit id non occaecati explicabo ex. Reprehenderit ut necessitatibus veritatis maiores animi et illo vitae. Quae illum magni laboriosam consequatur rerum recusandae. Maiores dolores dolores autem est aut velit libero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...