| Orlando Bravo, Goldman's Mark Sorrell on the state of M&A, OTPP's PhyMed awaits final bids, Altamont banks on return to fashion
Happy Friday!
Perspective: As lots of data outlets have now reported, Q1 deal activity and valuations were as robust as they’ve been in a while.
Although that may true, according to Mark Sorrell, co-head of global M&A at Goldman Sachs, very little activity is being driven by a one or two quarter view, but rather, the structural growth of a business. “A lot of what is driving activity now is clients taking a fundamental view about long term things,” he said at FT's Global Boardroom digital conference on Wednesday. “Volatility is a challenge. As that picks up, then the window for execution is more tricky,” he cautioned. As Thoma Bravo co-founder Orlando Bravo pointed out at the virtual event, there have only been two short periods of time over the last 25 years in which people have not complained about valuations: 1999 to 2000 and again during the financial crisis. "When you look at the overall valuation environment, what is really...
On the deal front, Ontario Teachers’ Pension Plan is awaiting final bids for PhyMed Healthcare Group, the provider of anesthesia services it bought more than six years ago, according to people familiar with the matter. Elsewhere, Altamont Capital Partners has joined the growing list of private equity firms finding renewed opportunity in apparel as stores reopen and consumers’ discretionary spending increases. “As there’s a return to normalcy folks are excited about dressing up,” said Keoni Schwartz, managing director at Altamont.
Read the full wire commentary on PE Hub...
Also of note (may require subscriptions) Inflation: Prices across sectors are on the rise, and businesses are experiencing wage pressure as they compete for talent amid trillions of dollars in government assistance flowing into the economy. Buyouts spoke with several GPs, who stressed they couldn’t predict whether the economy was entering a prolonged inflationary period, but talked about how they are factoring potential inflation into their existing portfolio, and into future deals. Read on Buyouts how - and in what pockets of the private equity market - the effects of rising prices is being felt.
In remembrance: The death of Yale University chief investment officer David Swensen sent reverberations through the investment industry this week. Tributes rolled in not only for his groundbreaking role in making alternative investments an integral part of public investment portfolios but for his friendship and willingness to mentor others. Read about his powerful legacy here on Buyouts.
Oil & Gas: EnCap Investments, a traditional energy private equity firm, found a way to successfully tap into rising limited partner demand for green strategies. Finishing shy of its $1.5 billion target, EnCap Energy Transition Fund I nonetheless marks one of the few examples of a long-time investor in hydrocarbons raising LP money for a low-carbon platform. Read it here.
PE Deals 
They said it “It’s really important to be invested in a business that has pricing power,” he said. “If you are facing those input costs rising, you can pass that through to the next user or buyer of that product.” Ethan Vogelhut, head of buyout investments Americas at Schroder Adveq, told Buyouts
Today's letter was prepared by Sarah Pringle Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. Please visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC. 
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