IPEM Pan-European Private Equity Survey 2021 (Swedish Private Equity & Venture Capital Association (SVCA))
Summary
- A negative impact from COVID-19 on portfolio companies was reported by 51% of private equity respondents, whereas 27% observed a positive impact.p.8
- Deal sourcing and conducting exits were the business operations most negatively affected by the crisis, selected by 60% and 57% of respondents respectively.p.9
- Government support for the overall economy during the crisis was evaluated positively by 83% of surveyed private equity professionals.p.10
- High valuations remained the top industry risk for 2021, highlighted by 89% of respondents, followed by increased regulation and tax changes at 72%.p.18
- Only 52% of European GPs expected to raise a new fund in 2021 compared to 60% in 2020, while 42% expected to launch new strategies.p.20
- Despite economic challenges, 70% of respondents expected to deploy more capital in 2021 than in 2020.p.32
Key insights
- An overwhelming 84% of respondents agree that private equity will explore growth opportunities beyond classic LBO deals because of the COVID-19 crisis.p.11
- Fifteen percent of respondents have already launched an impact strategy, and an additional 18% plan to launch one within the next 12 to 24 months.p.13
- Forty percent of private equity managers fear a major economic correction in 2021, citing a growth slowdown as the primary external threat.p.16
- Retail investors are viewed as a promising source of funds by 67% of European GPs, though perceived risk and high ticket sizes remain primary barriers.p.21
- Family offices and high-net-worth individuals are expected to be the most dynamic source of fundraising growth in 2021, with 65% expecting increased allocations.p.22
- Government agencies are expected to play a significantly larger role in venture capital fundraising, with 62% expecting an increase in 2021.p.24
- Fifty-six percent of market participants expect target valuations to increase further in 2021.p.28
- In the buyout segment, 59% of respondents anticipate higher leverage in 2021 transactions compared to 2020.p.29
- AI / Big data and Health / Medtech are identified as the most attractive sectors for Venture and Growth investors in 2021.p.34
Topics and entities
Summary and figures generated from the document and checked automatically: every number shown appears on the cited page. The full document is available from the publisher. Publishers can request removal.