Categories

GP Trends 2019

A clear sense of optimism pervades our ninth annual survey of private equity

Investec canvassed the opinion of 300 private equity professionals around the globe on the current landscape.

The private equity industry remains remarkably bullish, our ninth GP Trends report, produced in conjunction with MJ Hudson, reveals. Despite pronounced geopolitical and economic uncertainties, more than half of the 300 private equity professionals surveyed expect their next fund to be at least 25% larger than its predecessor, while one in eight expects to double in size.

Meanwhile, more than three-quarters of managing partners rated their career progression prospects at 5/5.

But the asset class nonetheless faces internal challenges. Career progression confidence slumps to 19% for those below partner level, and while a third anticipate a succession event in the next five years, 42% feel unprepared.

Furthermore, one in eight General Partners does not know how they are going to fund their personal commitment to their next fund.

Grant Crosby, Head of Fund Finance SA, Investec

Currency volatility is a universal risk and currency risk management should be a priority for all.

Key findings

1 in 8

GPs do not know how they are going to fund personal commitment to next fund.

55%

of GPs expect their next fund to be 25% larger than their current.

83%

of GPs said they expect to make follow-investments after the investment period has closed.

Uncertainty surrounding Brexit, coupled with the prospect of an economic slowdown and retrenchment of asset-level debt, means that deploying ever-greater increasing sums of dry powder will require GPs to be both flexible and agile.