2023 - the year of drought; has most certainly impact not only the coverage of roles which Novus Executives have been mandated with but certainly the search business as a whole. This will come as no surprise to our clients who will equally be feeling the pinch from a fundraising perspective compounded by macro-economic conditions resulting in a more conservative approach to deployment of capital.
A modest $7.6bn combines in Q1 and Q2 with a distort $19.7bn raised in Q3 (thanks mostly to Blackstones impressive GPCF III $7.1bn) does not make for great reading…in fact the worst possible reading for over 9 years.
Contextually even worse for our friends covering equity investments; a large portion of the pie is now being taken up by debt counterparts as a result of the more attractive returns and demand in this space. Three of the largest 10 funds raised in the first 9 months of this year and $10.3bn (or 38%) were in fact debt focused…again, lets consider Blackstone for some context here…
Largest Fund Closes
10 Largest funds closed in Q1-Q3 2023
What we have had more of; certainly since October however, is a warmer reception from prospective and existing clients on reconnecting in the new year. A deeper dive into the numbers indicates that we may be through the thick of it. From the $417bn of funds in the market, some final closes pending over the next 6 months will without doubt lead to a busier year for 2024. A number of the top 10 funds having furthermore secured north of 60% target.
Funds in Market
Largest funds in market as of 13 October 2023
Whilst the above lists have by no means been a go to shortlist for funds who will most certainly be looking to add talent, I’m proud to say that Novus have successfully completed on mandates with both equity and debt funds straddling both the “largest fund close” and “funds in market” list. We've furthermore done our best to keep our finger on the pulse covering attrition within our sweet spot between Analyst and VP level.
Included below is a sample of some of the data we have been working with accordingly.
With our team structure supporting core through to opportunistic infrastructure funds, Novus Executives are confident in securing diverse talent for specific mandates, providing real time data and deep dive into client attrition (identifying areas for retention spending), market surveys on everything from salary and bonus through to perception of target client.
We look forward to a fruitful 2024 all around and happy to meet to discuss how we can support at any time.
Ricci Sethi
Director, Novus Executives
+44 (0) 1625 460 004
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