Activism Driving Larger Private Equity Deals, UBS's Maellare Says

The video discusses the alternative capital universe, highlighting the growth in large global deals and the challenges posed by market volatility and high leverage. It explores strategies for managing risks, including better alignment and governance. The video also addresses the difficulties large private companies face in finding exits and the shift from financial engineering to operational management in private equity.

What is one of the main drivers of growth in the alternative capital universe?

• Decline in corporate carve-outs

• Reduction in dry powder

• Decreasing interest rates

• Larger global deals

What is a potential risk associated with increasing leverage ratios in private equity?

• Decreased deal sizes

• Excessive risk in the market

• Increased market volatility

• Higher interest rates

What has returned to the market that was seen during the last crisis?

• Public to private transactions

• Minority stake sales

• Club deals

• Corporate carve-outs

How do sovereign wealth and pension funds aim to maximize their returns?

• By investing indirectly

• By reducing their capital pool

• By avoiding large transactions

• By investing directly

What is a common strategy for private equity when public markets are not favorable?

• Holding assets indefinitely

• Avoiding any transactions

• Selling entire companies

• Breaking up and selling in pieces

What is a key reason private equity firms can justify their management fees?

• Their operational expertise

• Their large team sizes

• Their financial engineering skills

• Their global network

How are private equity firms transitioning from financial engineering to operational management?

• By focusing solely on financial metrics

• By bringing in operating partners

• By hiring financial analysts

• By reducing their team sizes