ESG remains relatively underappreciated as a value creation lever for the private equity industry
For many institutional investors, having a solid ESG profile is a requirement. Most have committed to one or more international initiatives, such as the Principles for Responsible Investment or the Net-Zero Asset Owner Alliance, and thus must invest in or finance companies that adhere to those commitments. The ripple effect extends to middle-market private equity and private credit firms and their present and prospective portfolio companies.
With more private equity capital available than ever before, another boom year is expected in 2022
Private equity dealmaking and fundraising is forecasted to remain robust in 2022, while midmarket managers in the United States and Europe are wary of high valuations and inflationary pressures as they deploy record amounts of capital.
The booming secondary market in Private Equity an additional gateway for Luxembourg
Individual LPs (investors) can only exit early their private equity interests through the secondary market. In brief, secondaries allow investors to sell their positions in private equity funds and hence liquidate equity stakes in private companies. Due to the illiquid nature of private equity, the establishment of a secondary market was necessary and perhaps inevitable.
Private Equity should start their digital journey now before it’s too late
The private equity game has become more complex and competitive. Increased capital has flooded the market, driving up prices for fewer transactions. Global assets under management (AUM) are currently just shy of $5 trillion, and companies are acquiring more than they are selling.
Challenges facing private equity in 2022
Private equity will likely have a solid 2022, as money managers and the well-off continue to seek performance and diversification, Shanu Sherwani, a private equity analyst, writes in this guest column. More secondary investors are expected to enter the market, while use of DLTs (the technology also known as the blockchain) could also pick up.
Fund of Funds an attractive gateway for Investors seeking exposure to Private Equity
Through exposure to many funds, and in turn, many companies, investors can achieve diversification while only making one financial commitment. The purpose of this article is to examine the attractiveness of fund of funds, their advantages, and the types of investors for whom they are appropriate.