Financial

Gary McGaghey’s Role in Private Equities

Gary McGaghey is a private equities expert and an international Chief Finance Officer (CFO) at Williams Lea Tag. He has great experience having worked with different international companies dealing with fast-moving consumer goods and pharma companies such as Unilever PLC and Unilever Bestfoods Robertsons (Pty) Ltd. He has a Bachelor of Commerce degree from the University of Natal and a postgraduate degree in Commerce (Honors) from the University of South Africa. Gary McGaghey started his Private Equity (PE) career with Robertson’s Foods (Pty) Ltd, a company owned by Private Equity shareholder, Remgro PLC.

In the first five months of 2021, PE experienced an increase in volumes of their deals by 21.9 percent compared to the same period the previous year. This is as a result of low-interest rates and a record fundraising in the US PE which stood at 150.1 US dollars. In addition to that, experienced PE experts such as Gary McGaghey are setting up new funds leading to an increase in deployable capital. The PE firms have also evolved to diversified alternative asset managers with holdings in different asset classes. This can be seen through the US alternative investment players who drove the annual net new money (NNM) of assets under management (AUM) to 5-15 percent from 2015-2019.

Private Equities have also targeted insurance companies for their products such as annuities and long-term care insurance since they guarantee stable long-dated liabilities that are backed by long-term assets. Insurance companies also increase AUM, generate additional fee income, and provide permanent capital by allowing access to their balance sheet. PE founders are looking forward to increasing capital gains taxes resulting from tax law uncertainty. These firms have also engaged in a thorough analysis of environmental, social and governance (ESG) risks so as to be more selective in their targets.