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1/6 Four perils for #PrivateEquity today-or are they?
1. Recessions are bad, right?
Nope. Funds raised in recession years have done very well. Capital is deployed over several years so get to pick up assets at beaten up prices, and sell later in recovery phase
#SuperReturn
1. Recessions are bad, right?
Nope. Funds raised in recession years have done very well. Capital is deployed over several years so get to pick up assets at beaten up prices, and sell later in recovery phase
#SuperReturn
2/6
2. Stagflation is worse though?
For some sectors yes but not all (based on analysis of public market sectors). Some could do well
- healthcare
- consumer durables
- anything that can save companies money (e.g. some business services)
2. Stagflation is worse though?
For some sectors yes but not all (based on analysis of public market sectors). Some could do well
- healthcare
- consumer durables
- anything that can save companies money (e.g. some business services)
3/6
3. Closure of exit windows (IPOs, corporate M&A) is a challenge
But could lead to a rise in secondaries. Both GP-led (where sell to another vehicle run by the same GP), and traditional LP-led (where an LP sells their stake to another LP) likely to rise
3. Closure of exit windows (IPOs, corporate M&A) is a challenge
But could lead to a rise in secondaries. Both GP-led (where sell to another vehicle run by the same GP), and traditional LP-led (where an LP sells their stake to another LP) likely to rise
