As part of a series of research papers, with responses from over 140 Private Equity professionals around the globe, Intertrust partnered with the British Private Equity and Venture Capital Association (BVCA) to commission a research whitepaper looking at current trends in the market.
Some interesting highlights:
2015 to 2017 have been booming markets with dry powder likely to reach USD 1 trillion by year-end ‘17. This shows that private equity continues to be a growing asset class with consequences that impact GPs, LPs, service providers and other stakeholders.
Factors such as tighter governance, increasing transparency, more sophistication in the use of data management technologies to respond to increasing reporting requirements, the impact of diversifying asset classes on the length of a fund’s life cycle and the consideration of ESG on portfolio management challenge and change the private equity industry. These trends are likely to persist as almost 50% of all LPs plan to increase their exposure to PE over the longer term while concentrating assets on fewer GPs.
These factors also have an imminent impact on PE service providers. Quicker, more frequent, customised, sophisticated, dynamic, real-time accessible, transparent: key words when defining the needs of GPs and LPs that service providers have to meet if they want to flourish.