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IPEM - 5TH pan-european PE survey - Dealing in a Downturn: a “Reality Check” For Private Equity?

IPEM’s fifth annual Private Equity survey acts as a litmus test for the industry, and here European GPs give their views on the road ahead. In total, 188 interviews were completed by the CSA Institute on behalf of IPEM from 28th November 2022 to 2nd January 2023 with the support of PE’s 14 national associations in Europe. The data was analysed in collaboration with AlixPartners, IPEM’s principal knowledge partner.

The economic situation is the number one concern of European GPs in 2023. With rising interest rates, rising inflation and the slowdown in growth, 79% of them expect an economic correction in 2023 (they were only 21% in 2022).

78% of the European GPs don’t see 2023 as a good year for exit or fundraising (72%). Most of them still see it as a good year for portfolio management / improvement (81%) and deal making / capital deployment (78%).

77% of respondents consider that the market will be LP-led in 2023. A tough exit environment will of course impact LPs’ ability to be more active, tempering expectations of distribution from GPs that can be redeployed in the market. Nonetheless, 2/3 of European GPs expect to raise new funds and more than half expect to raise more capital than in 2022.

European GPs anticipate a decrease of investments from most categories of institutional investors, except for Sovereign Wealth Fund and Government Agencies. “Retail investor” pockets are anticipated to grow faster and have become an important focus.

Hands-on value creation will be key in 2023. Top 3 levers to generate value for GPs are operational efficiency (62%), organic growth (49%) and organizational efficiency (48%).

Less than 50% of European GPs measure their CO2 emission… But many plan to. The industry is showing strong conviction around climate initiatives. Many projects & initiatives are currently being explored… To be continued.

Dowload the Key Findings & Full Report


Vendredi 3 Février 2023