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Paula Sambo of Bloomberg reports Canada pension fund's credit head wants to take advantage of leveraged buyout boom: Canada’s largest pension fund plans to nearly double the size of its credit holdings over the next five years, and it’s counting on an upturn in leveraged buyouts to generate some of that growth. There’s pent-up demand.
Deal activity has picked up nicely since the first half of the year, driven by increased refinancings and, on acquisitions, a new buyout activity. I do think dealflow activity will pick up, and that will generate some repayment income that we haven't had for a while. So, if we could do a little bit better, we can.
As I stated in the past, we have yet to see a correlation between sales and retailer demand as evidenced by our dealflow, which in terms of square footage is 40% greater when compared to the same period last year. I guess the first question, Scott, maybe just going back to the Pacific JV buyout. Regarding holiday.
Private equity at the time was only about buyout and LBO. But I also learned along the way that you rarely die, I mean as a company, from your P&L or from your assets, but you always die from your liabilities. Coming back to my comment, again, it’s your liability side. Great opportunity for us.
Panossian ] 00:08:19 The liabilities, obviously the hedge funds had redemptions. Now they’re suffering from high rates because they have floating rate liabilities that they never hedged. There were so much for selling from the, something called SIVs, the special investment vehicles, right. That had mismatched assets.
As I've stated in the past, we have yet to see a correlation between sales and retailer demand as evidenced by our dealflow, both in terms of number of deals and square footage when compared to the same period last year, and I'll get into this more in a moment. Traffic for the year was up almost 2% when compared to 2023.
Its somewhat of an anomaly that a fund which has liabilities greater than its assets, putting liquidity risk front and centre, would have so much invested in unlisted assets. Private equity is the final piece of the puzzle with investments dominated by the buyout program. We decided to focus on our buyout efforts in North America.
BXPE will leverage the firm's full breadth of investment capabilities in private equity, including buyout, secondaries, tactical opportunities, life sciences growth, and other opportunistic strategies. There may be more capital coming to the space, but I think there'll be more dealflow as well. And so that's a positive.
I was in my early thirties, I didn’t have a mortgage, I didn’t have kids, I had very few liabilities. But when you’re doing larger businesses, and we have clients that are pan regional, that are European, pan-European buyout players, or that are global buyout players that do global deals, US and Europe.
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