At the 2023 Global Investment Forum, ACE & Company showcased their complementary strategies of Buyout, Secondaries, and Ventures on stage, bringing them together for the first time in a decade.
ACE’s multi-stage investment approach fosters knowledge sharing and empowers the team to navigate the dynamic investment landscape with informed decisions. The ACE Secondaries strategy enhances the understanding of market dynamics, while the Buyout strategy provides specialized insights into fund activities. Additionally, the Ventures strategy offers valuable information on the ground level, enabling a deeper understanding of the experiences and perspectives of founders and entrepreneurs.
In the panel, ACE Ventures highlighted a shift in deal volumes, returning to 2017 levels, while value levels have reverted to 2019. Tourist investors have been gradually squeezed out of the market in recent years, resulting in reduced competition for new investments. The team emphasized the importance of careful selection, as even within the same sector and country, success hinges on the choice of the best business model.
ACE Secondaries observed a substantial supply of secondary funds in 2023. This surge was primarily driven by sellers seeking liquidity for other capital calls or due to overallocation to private equity. As a result of this influx of funds, the secondary market has become a hub of activity, offering a wide range of investment opportunities.
ACE Buyout drew attention to tougher fundraising conditions, with large limited partners (LPs) writing smaller checks and tighter credit conditions for leveraged buyouts. Despite these challenges, ACE Buyout has effectively maintained high deal volumes. Their success can be attributed to their relationships with emerging sponsors across diverse market segments. Leveraging these relationships, ACE Buyout has sourced over 230 investments per year, executing on less than 5% of them.