Articles & Papers

PE/VC Trends Report: Technology Edition

Exploring Trends in Value Creation

The foundations: fundraising, deal activity, exits

A shifting landscape: a tough year in fundraising; PE takes public companies private; AI’s disruptive potential

 

"The story in early 2023 centered on the Silicon Valley Bank failure and its repercussions on fundraising. As the year concludes, it becomes evident that China's impact has a more enduring effect on Asian fundraising. The post-COVID downturn in China, combined with the push for non-Chinese suppliers, has resulted in a depletion of fundraising activities related to China. Looking ahead to 2024, the growth in India and other regions may contribute to a resurgence in those markets. Additionally, the electric vehicle (EV) and semiconductor sectors in China could also play a role in driving a rebound." 

- William J. Farrell
APAC Regional Practice Leader, Private Equity & Venture Capital Practice
Managing Partner, Taiwan and South Korea

 


 

Retail investors: the next great growth engine

Poor equity performance makes alternative investments attractive; PE products and strategy increasingly tailored to retail investors; private capital is creating a new ecosystem

 

"In 2023, we have witnessed the lowest private capital fundraising in decades, prompting General Partners (GPs) to question their traditional approaches. One way GPs are responding to the market change is by expanding their focus to non-institutional investors, such as High Net Worth Individuals (HNWIs) and family offices, as targets for new capital. Private equity firms are scaling up their investor relations teams, and some are exploring relationships with banks and private placement firms to access new clients globally. Keeping this in mind, Know Your Customer (KYC) and due diligence capabilities within GPs will also need to be addressed in the selection and onboarding of new retail clients."

- Nessrine Salah
Managing Partner, UAE

 


 

Digitalisation: new levers for value creation

Digitalisation drives new business models; cloud–data anlaysis–predictive modelling deliver stronger revenue streams; GenAI injects speed, adaptability and scalability

 

"At the heart of a successful portfolio company, there will always be a genuine and outstanding business idea and approach to the market. However, the challenging environment we are currently facing underscores the importance of focusing on profitability, aiming to strike a balance between growth and sustainable performance. Remaining vigilant and aware of digital innovation, a smart and pragmatic use of state-of-the-art digital tools and infrastructure will increase competitiveness, trim costs, and drive profitability. Securing executive support and building talent in the areas of analytics, automation, and AI, in general, will differentiate the good from the great investments, particularly in the next growth period ahead of us."

- Andreas Landgrebe
Global Sector Leader, Digital Transformation Leadership
Managing Partner, Austria, Romania and Slovenia

 

 


 

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