Transforming Private Equity : The Precision PE Approach

Private equity has recently entered a new phase in its evolution, comprised firstly of a step-change in the industry’s scale and maturity, with secondly an in-tandem shift in the economic backdrop. Long-established firms have evolved into multi-strategy asset managers or sector / geographic specialists, whilst new entrants, of which there are many, in combination with heightened market transparency and the efficiencies of a dedicated ecosystem of service providers, have increased the level of competition for assets.

Slowing growth, inflation shocks and higher (even if not high by historic standards) interest rates are also putting pressure on the returns at which historic investments were underwritten. This in turn has slowed levels of deal activity and comes against a backdrop of LPs looking to streamline their relationships, a trend which began even before many investors found themselves overallocated these past twelve months…