GP Trends 2022

Investec’s 12th annual GP Trends report reveals what’s on the mind of the private equity market during a period of profound uncertainty. We surveyed over 150 senior private equity professionals this year to reveal how they are thinking about the fast-changing landscape – with headwinds such as inflation, interest rate hikes and rising energy costs.

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This year’s GP Trends survey reveals an industry at a turning point. After record levels of fundraising and deal activity in 2021, private equity firms are recalibrating their expectations against a more challenging backdrop this year. Inflation and interest rates are at the top of the agenda, with 71% expecting these factors to decrease the availability of finance for deals, and 55% of respondents anticipating more covenant breaches over the next 12 months.

However, most respondents were cautiously optimistic overall. The majority of the GPs surveyed this year expect to deploy more capital than in 2021, and fewer than 10% believe that returns will be lower than last year. In response to the macro-economic headwinds, some respondents expect the fundraising market to become more bifurcated over the next 12-24 months – with top performing funds expected to raise a disproportionate amount of capital.

The report analyses responses from more than 150 private equity professionals, also featuring insight from in-depth interviews with a select group of senior leaders.

 

 

Key 2022 findings

55%

of PE managers who expect their fund to be 50%-100% larger than its predecessor have employed a female partner in the last year (vs 21% in firms that expect their next funds to be flat)

71%

believe that rising inflation and interest rates will decrease the availability of finance for deals

46%

expect the size of their next fund to be 25%-50% larger than its predecessor

Contact us

  • Jonathan Harvey

    Jonathan Harvey

    Fund Solutions

    Our people are our difference. Give me a call today to find out what we can do for you.

  • Helen Lucas

    Helen Lucas

    Growth & Leveraged Finance

    I joined Investec in April 2014 from the Debt Finance team in Barclays where I worked as a Vice-president in Origination.

  • Jonathan Arrowsmith

    Jonathan Arrowsmith

    Head of Advisory & Co-Head of Private Equity

Contact us

Jonathan Harvey

Fund Solutions

Our people are our difference. Give me a call today to find out what we can do for you.

Helen Lucas

Growth & Leveraged Finance

I joined Investec in April 2014 from the Debt Finance team in Barclays where I worked as a Vice-president in Origination.

Jonathan Arrowsmith

Head of Advisory & Co-Head of Private Equity