news/cms/202411/10/news-p.v1.20241108.1d0c019a15d04154a2712c514a037d1e_R.jpg" data-width="1042" data-height="692" /> Enlarge photo Michael Granoff CEO of Pomona Capital
“As M&A (mergers and acquisitions) transactions increase, the global private equity market will also grow.”
Michael Granoff, CEO of Pomona Capital, who recently had an interview with Maeil Business Newspaper, diagnosed the changing global private equity market as follows.
The explanation is that M&A transactions have slowed down as liquidity has decreased due to high interest rates, but this trend is beginning to reverse now that interest rates are stabilizing.
In particular, it is expected that so-called ‘secondary’ investment, which involves reacquiring stocks of portfolio companies invested by private equity funds, venture capital (VC), etc., will become active.
CEO Granoff said, “If the financial environment remains stable, M&A transactions will proceed more actively next year than this year.”
He continued, “However, differentiated patterns may appear in the market, with only profitable companies that can generate high profits receiving attention from investors.”
news/cms/202411/10/news-p.v1.20241108.498898b3667f4a44aab02f9d408d1314_R.jpg" data-width="1440" data-height="961" /> Enlarge photo Michael Granoff CEO of Pomona Capital
In addition, he predicted that individual investors with ample capital will also emerge as new players in the private equity market.
In the private equity market, assets that provide a certain level of return with relatively low risk are preferred over ‘high risk, high return’ assets.
CEO Granoff explains that as the search for new alternative investment assets becomes more active, individual investors are beginning to turn to the private equity market.
He said, “The proportion of institutional investors invested in private equity (PE) is as high as 30%, while individual investors are close to 0%.” He added, “Individual investors investing in PE will be a big trend in the private equity fund market.” He said.
CEO Granoff founded Pomona Capital, a global secondary investment company, in 1994. Currently, he is in charge of Pomona Capital’s strategy, investment, and management division.
Pomona Capital launched a fund that allows individual investors to invest in the private market about 10 years ago, and its current assets under management amount to $1.8 billion (KRW 2.5191 trillion).
He said, “It is necessary to pay attention to products with investment strategies similar to the asset portfolios held by institutional investors,” and “We will also need to carefully check whether we are receiving appropriate returns from high-quality private equity investment products.”
news/cms/202411/10/news-p.v1.20241108.9da249e1818b40c9bb7199e849574e3b_R.jpg" data-width="1440" data-height="961" /> Enlarge photo Michael Granoff CEO of Pomona Capital
When Donald Trump was elected president of the United States in the recent U.S. presidential election, volatility by asset class increased in the investment market, but he advised that even amidst this, investment opportunities should be sought.
He said, “It is difficult to predict how the economy, national security, etc. will change, but this is not the first time we have experienced the era of President Trump. In times like these, it is important to protect investors’ funds and discover assets that can generate stable profits.” “It will be important,” he said.
Since receiving its first investment in Korea about 25 years ago, Pomona Capital has maintained its reputation by employing a consistent investment strategy over a long period of time and has established itself as one of the places that attracts attention from domestic institutional investors.
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