Apollo’s David Sambur sees 'm odest pick-up;' Blackstone’s J onathan Gray discusses giving back while training employees

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Apollo’s David Sambur sees 'modest pick-up;' Blackstone’s Jonathan Gray discusses giving back while training employees

Good morning, Hubsters. MK Flynn here in New York with the US edition of the Wire.

Uncertainty muddied the waters in the first half of the year. How are private equity professionals navigating the choppy seas, and do they think there will be clearer skies in the second half? Those are some of the questions PE Hub is asking a wide range of sources these days.

“We have not seen the floodgates open just yet,” Apollo’s David Sambur told me.“So far, we have seen the most pristine assets begin to trade. What comes next requires more price discipline, a focus on operational value creation and a back-to-basics mindset for the private equity industry.”

I’ll share more excerpts from Sambur’s H2 outlook, below. The story is part of PE Hub’s ongoing series of Q&A with PE thought leaders. Also in the series, earlier today, we published senior reporter Nina Lindholm’s interview with Ardian’s Thibault Basquin, who said, “It is an exciting time to invest in Europe.”

Taking another tack, Blackstone’s Jonathan Gray spoke with reporter Rafael Canton in an exclusive interview about the PE firm’s annual Give Back Challenge, which sharpens employees’ pitching skills and yields donations for nonprofits.

The contest “develops a skill set,” Gray said. “There is a personal development aspect of this, in addition to its being for a good cause.”

Let’s dive into those stories.

Modest pick-up

David Sambur, partner and co-head of equity at Apollo Global Management, weighs in with his outlook for dealmaking in H2, as PE Hub’s ongoing series of thought leader Q&As continues.

Subscribers to the premium version of the Wire will find excerpts from the interview, including what Sambur says PE pros should focus on to succeed during what comes next.

For more of PE Hub’s recent thought leader Q&As, see:

Giving back

“It’s daunting,” Jonathan Gray, president and COO of Blackstone, told PE Hub moments after announcing this year’s winners of the private equity firm’s seventh annual Blackstone Gives Back Challenge, an employee contest that results in philanthropic donations. “You’re presenting, and much of the firm leadership is sitting in the front row. You’ve got an audience in the room and on Zoom, and you’re making a five-minute pitch with rapid fire questions. It develops a skill set. There is a personal development aspect of this, in addition to it being for a good cause.”

Upgrade to the premium version of the Wire to learn more of Gray’s thoughts about this year’s contest, in which nearly 400 Blackstone employees across the globe nominated 75 non-profit organizations for a total of $1.275 million in grants.

And for more on the contest and its role at Blackstone, see PE Hub‘s story on last year’s challenge.

That’s it for today. Tomorrow, Craig McGlashan will bring you the Europe edition of the Wire, and Michael Schoeck will bring you the US edition.

All the best,

MK

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Ardian has doubled down on its operational value creation program for its portcos amid a dealmaking environment where buyers remain cautious, Thibault Basquin, co-head and CIO of Buyout, told PE Hub. But while deal processes are taking longer, the French PE house considers the opportunity set in Europe to be strong for those with local relationships.

Inside the EIF’s sustainable investment engine: From venture capital to farmer financing, three senior figures at the European Investment Fund – Aubin Bonnet, Céline Lévy and Ghislain Terrier – explain how the EIF is scaling green innovation and adapting to a tougher fundraising climate. (Agri Investor)

The Pennsylvania Public School Employees’ Retirement System expects to close in on its targeted infrastructure allocation next year, having followed what it describes as a “more targeted” approach to the market. The $77.2 billion pension fund has a target allocation – introduced in 2016 – of 5 percent to private infrastructure, although the current allocation stood at 3.8 percent at the end of March. (Infrastructure Investor)

"Private-equity firms Bain Capital and Kohlberg are leading a new multibillion-dollar investment in PCI Pharma Services, a company that specializes in helping biopharma companies bring new drugs to market, executives at the firms said. The deal values PCI at $10 billion, including debt, according to people familiar with the matter." (Wall Street Journal)

"Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on It" (Wall Street Journal)

"U.S. publisher McGraw Hill is targeting a valuation of $4.2 billion in its IPO, the company said on Monday, adding to a recent line up of public market hopefuls that are looking to tap an improvement in investor sentiment." (Reuters)

"Banks are looking to sell $2.25 billion of term loans and $2 billion equivalent of bonds for Boots, to help finance its acquisition by US private equity firm Sycamore Partners, according to people familiar with the matter." (Bloomberg)

Deals

They said it

“What comes next requires more price discipline, a focus on operational value creation and a back-to-basics mindset for the private equity industry.”

— David Sambur, partner and co-head of equity at Apollo, in a thought leader H2 Outlook Q&A

Today's letter was prepared by MK Flynn

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