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KKR identifies industrial automation, worker reskilling, AI, decarbonization as mega themes; Vista still likes enterprise software

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter. 

As the year wraps up, I want to draw your attention to enterprise software, a sector that, despite the tough market conditions, produced steady dealflow from multi-billion dollar transactions, midsized and smaller deals. Most of you may still remember my deep dive earlier in the year focusing on why private equity still loves enterprise software. 

To that end, and as part of PE Hub’s ongoing series of interviews, I spoke to Vista Equity Partners’ Patrick Severson for his take on enterprise software and the year ahead.

But first, we will start with a look at KKR’s 2024 Global Macro Outlook from Henry McVey, just out this morning.

And finally, I’ll share some details about ourexciting event next Spring, dubbed Nexus 2024, which you won’t want to miss.

Outlook

KKR’s Henry McVey, the firm’s CIO of balance sheet and head of global macro and asset allocation (GMAA), sees a wide range of compelling investment opportunities in a number of sectors, as detailed in the firm’s 2024 Global Macro Outlook released this morning.  

Some of the compelling opportunities as highlighted include:

Industrial Automation – which is underpinned by some companies’ search for new ways to drive productivity and efficiency in a world where demographics and cross-border connectivity are becoming increasingly challenged.

Upgrade to the premium version of the Wire to read more about this outlook report.

Enterprise software 

One of the most popular stories on PE Hub in 2023 was "Why private equity firms still love enterprise software," which I wrote back in April.

To gain some updates on investing in the sector, I turned to Patrick Severson, a senior managing director at Vista Equity Partners who is also co-head of the Vista Foundation Funds. The interview is part of our ongoing series of Q&As with PE dealmaking thought leaders. Severson spoke on many themes, including his perspective of 2023 investing environment, generative AI and enterprise software, opportunities for the year ahead, among others. 

Upgrade to the premium version of the Wire to read more about Severson’s perspectives.

Come together

Before I sign off, I’d like to highlight something for your 2024 calendars. NEXUS 2024, hosted by Private Equity International and PE Hub, will bring unmatched market insight and LP-GP connections to life in Orlando, Florida on 6-8 March. 

The agenda has been created in conjunction with PEI Group’s editors, the Institutional Limited Partners Association and our LP advisory board. It features topics front of mind for CIOs from the California State Teachers' Retirement System, Massachusetts Pension Reserves Investment Management, Maryland State Retirement and Pension System, New Mexico State Investment Council and more. 

Keynote speakers include Howard Marks, co-founder and co-chairman of Oaktree Capital Management; Jonathan Gray, president and COO of Blackstone; and David Rubenstein, co-founder and co-chairman of Carlyle Group. 

We are talking three unmissable days of one-of-a-kind agenda content covering opportunities across private equity dealmaking in North America and wider private equity markets.

For a preview of the types of discussions you’ll find at NEXUS 2024, watch PE Hub editor-in-chief Mary Kathleen Flynn’s webinar with Michael Chang, partner at BC Partners, about bringing in Apollo Global Management as a co-investor in PetSmart. You can also read coverage of a webinar hosted this month by Private Equity International and moderated by ILPA chief executive Jennifer Choi, in which decision-makers from the State of Wisconsin Investment Board and Florida State Board of Administration exchanged views on NAV loans.  

That’s it for this week. MK will be back with the newsletter on Monday. 

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

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