Against a backdrop of enduring geopolitical uncertainty, global private equity is experiencing a resurgence.
Having experienced a record year for fundraising in 2017, the industry looks to have got off to a promising start in 2018: the industry looks to be delivering double-digit returns for investors; it is competing with and, in some cases, outperforming stock markets; and, with record amounts of dry powder, private equity houses are fast becoming serious M&A contenders.
While this presents a number of opportunities for the industry, it is not without its challenges: competition for assets is fierce; asset valuations remain extremely high; and pressure is mounting to deploy capital.
In its latest edition of Global Private Equity Insights Only for the Brave: Discovering opportunities in an uncertain world Baker McKenzie's clients share their insights on how they have paved the way for success despite these challenges, the ongoing Brexit turmoil, the unpredictable US administration and general political upheaval worldwide. What emerges in the report is that some private equity managers are finding new ways to distinguish themselves and deliver value to investors – from investing in new strategies, to maintaining strict discipline around the qualities and principles that have made them leaders in their fields.
The report includes insights and contributions from senior leaders at over twenty leading private equity houses, corporates, banks and consultancies, including Bain Capital; Emerson; Lazard; UBS; Standard Chartered; EQT; Canada Pension Plan Investment Board and many more. They share their strategies for success and cover a range of topics and markets.
Commenting on the launch of the latest Global Private Equity Insights report David Allen, Baker McKenzie's Global Chair of Private Equity, said: "Geopolitical uncertainty has now become the 'new normal' and has spurred private equity managers into thinking differently and creatively about how best to deliver value to investors. In the process, they have re-booted the private equity industry and sought to create opportunities where they didn't previously exist. This includes our trailblazing client base and I'm delighted that they've shared their insights in our new report."
Key report highlights include:
- Emerson and Bain Capital on the opportunities and challenges of corporate carve-outs
- Bankers from Lazard Middle Market, UBS and Standard Chartered Bank offer their views on key trends in London, New York and Hong Kong
- EQT's Johan Bygge shares his views on bringing a global investment strategy to Asia Pacific
- Canada Pension Plan Investment Board's Jimmy Phua discusses their strategy in Asia
- Core Equity's Gary Cleaver talks strategy and holding horizons
- Bain Capital Double Impact's Iain Ware and Chris Cozzone on how impact investing can drive both meaningful change and good returns
- An insights into how the US Tax Reforms are changing the equation for private equity transactions
- Monomoy Capital Partners' Jaime McKenzie talks about a unique approach in the US Middle Market
- Black Toro's Ramón Betolaza addresses special situations in Spain
- Advent's Wilson Rosa on the opportunities and pitfalls of investing in Brazil
- Auctus' Daniel Meuthen discusses managing complexity in the German Middle Market
- Alothon's Ettore Biagioni provides insight into Brazil's Middle Market
- Altra Investments' Juan Pablo Gomez provides insight into investing in Colombia and the Andean region
- Old Mutual Alternative Investments' Nabeel Laher discusses investing in Africa
- Three leaders in cryptocurrency and blockchain technology talk about how it is transforming the investment landscape
- Howden's Joe O'Brien and Caroline Rowlands address trends in the W&I insurance space