Key Takeaways from the With Intelligence Women’s Private Equity Summit Europe

The With Intelligence Women’s Private Equity Summit Europe 2024, a premier annual gathering for senior women in private equity, was held last month.  Ropes & Gray is proud to have been a founding partner of the event as well as a headline sponsor for the third year running.

The event – which featured two of the firm’s partners, Elizabeth Todd and Eve Ellis as panellists – provided valuable insights into current trends and future opportunities in the private equity landscape. Here are some of our key takeaways from the summit:

Generating returns: where are firms finding success?

A consistent message from the conference was that traditional leverage multiples are no longer the primary basis of return generation. Instead, revenue growth through value creation is now the focus. Limited partners (LPs) noted that general partners (GPs) with specialised sector expertise are likely to excel in fundraising. Demonstrating sector knowledge through operating partners and strategic planning is crucial for GPs.

Efficient and early strategic planning, including thorough purchase processes and early implementation of 100-day plans, has become essential. Using the diligence process to align management with the business plan and initiating value creation planning between signing and closing are key strategies for maximising returns. Keeping an early eye on the exit strategy is increasingly important.

The road ahead for private markets: the LP perspective

A common theme among LPs was overallocation, with a focus on making top-up investments in existing funds and investing with familiar fund managers who have demonstrated operational excellence. This trend has limited opportunities for new emerging fund managers in 2023 and 2024. However, LPs are hopeful that as investment capacity increases, they will be able to explore more opportunistic ventures.

NAV financing structures were also a hot topic, with mixed reviews from LPs. The consensus was that upfront disclosure and clear communication from fund managers are crucial. LPs prefer NAV structures that do not compromise their protection or grant lenders step-in rights.

AI: private equity’s ability to embrace change

AI's potential impact on the private equity industry was a significant discussion point. While there are apprehensions about AI, the focus was on its ability to create operational efficiencies. AI tools can analyse vast amounts of data quickly during due diligence and automate financial modelling, reporting, and compliance checks. The effectiveness of AI in risk management, monitoring, and value creation is being tested and it will be an area that draws high levels of interests from investors. 

Successful implementation of AI across portfolio companies requires management buy-in, training, and resource management. There is also a growing demand for investments with an AI focus. Deal teams must understand the legal and ethical implications of such investments and their sector-wide impact.

Healthcare: diagnosing opportunities – what’s next?

Impact investing emerged as a significant focus during the conference, particularly within the healthcare sector. The synergy between impact investing and financial returns was highlighted, with patient centricity identified as a key growth opportunity. As patients increasingly demand more access to and control over their healthcare data, businesses are innovating to meet these expectations. Personalised healthcare solutions are becoming a major attraction for private equity sponsors.

Historically, healthcare treatments have been based on data from a narrow demographic. By expanding data collection to include a broader population, there is potential to develop more accurate and personalised healthcare solutions. This approach not only addresses a large untapped market, particularly for women and diverse ethnic groups, but also positively impacts overall population health.

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