Leader Capital’s Private Markets 2022 Summit brought together more than 300 Israeli and global senior industry professionals, including leading Israeli limited partners, global fund managers and advisors to discuss a range of critical topics and trends influencing private market investment activity.
The backdrop of the conference, which was held in Tel Aviv, is the record level of private capital allocations by institutional investors in Israel. According to Leader, the percentage of assets under management allocated to private equity, credit and real estate, among alternative asset classes, has risen from 3% in 2010 to 11% in 2021 representing $75 billion with approximately 75% of institutional investor commitments directed to non-Israeli managers.
The event featured a keynote address by Clayton, Dubilier & Rice Operating Partner and Chairman of CD&R Europe Roberto Quarta. In his presentation, titled Creating Alpha in Private Equity – The Value of Operational Experience, Mr. Quarta, maintained that private equity’s success depends on private equity capital being more than “high-octane financial gasoline.” Instead, he argued, “Private capital must be strategic – strategic to corporate, family, and founder business owners.”
Mr. Quarta also emphasized how private equity has historically fared in uncertain times. “I believe private equity is risk capital that is highly adaptive to market conditions and capitalizes on market volatility by providing companies with both capital and capabilities that are purpose built to solve operational challenges.”
Reflecting on his experience as Chairman and Chief Executive Officer of both public and private companies, Mr. Quarta observed that “The magnitude and complexity of today’s macro- economic challenges demands bold leadership and fresh thinking for businesses to prosper.” He discussed the assortment of management approaches and forms of operational support private equity firms can provide and outlined the key attributes necessary to drive operational excellence. “Whether a public company or one backed by private equity, I believe that operating expertise has never been more vital,” he said.
Mr. Quarta has been a Partner at CD&R for 21 years. Based in London, he played the lead operating role in a number of the CD&R funds’ European investments. He also serves as Chairman of WPP plc and Smith & Nephew plc. Prior to CD&R,, he served as CEO of BBA Group plc from 1993 to 2001, later serving as Chairman from 2001 to 2006. He is the former Chairman of IMI plc and held various senior operating positions at BTR plc.
Mr. Quarta concluded his remarks by stating “I believe that the private equity industry’s best days are ahead, especially for those firms focused on creating value through sustainable, operationally-accretive strategies, rather than simply skating on hot industry sectors or inflated public and credit markets which we have witnessed in recent years.”
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses across a broad range of industries, including Industrials, Healthcare, Consumer, Technology and Financial Services. Since its inception in 1978, CD&R has managed the investment of more than $40 billion in over 100 companies with an aggregate transaction value of more than $175 billion. For more information on CD&R, please visit www.cdr-inc.com and follow the Firms activities through LinkedIn and @CDRBuilds on Twitter.