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Laxman Pai, Opalesque Asia: Private equity, venture capital firms wary about deal-making, fundraising environment, said a study.
According to the S&P Global Market Intelligence 2023 Private Equity Outlook Survey, 45% of private equity executives surveyed expect fundraising conditions in their location to deteriorate this year, while 34% said conditions will remain the same.
Venture capital professionals were split, with 35% forecasting a deteriorating fundraising environment and a similar percentage expecting conditions to remain unchanged.
The survey revealed that GPs have more pessimistic expectations for deal activity, with 24% predicting a deterioration this year compared to 7% last year.
PE and VC professionals have differing opinions on the effect of geopolitical factors on their strategies. 52% of European PE professionals believe that the geopolitical situation will affect their strategies, whereas only 39% of their VC counterparts share this view.
43% of LPs investing in PE will increase their asset allocation in PE in 2023, while VC and private debt are likely to see a decrease in allocation.
A significantly higher proportion of LPs in North America (25%) are considering changing their GPs in 2023 compared to their counterparts in Europe, where only 9% are contemplating a GP switch.
"This year's survey also identified a noticeable divide between PE and VC professionals in expectations for deal activity in 2023, with success dependent on ...................... To view our full article Click here
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