Despite enjoying a great 2017 and a promising start to 2018, private equity investors are feeling ever increasing challenges to reaching targeted returns. Perhaps the private equity investment market has changed, given the following key systematic shifts:
- A continuing increase in the number of funds and investment professionals, driving “compulsion” to invest (and ticking clock) in an increasingly competitive market; and
- A surplus of investable cash, augmented by sustained low interest rates.
The inevitable response has been a dramatic rise in multiples, combined with a generally avowed shift, at least at the margin, toward a spectrum of risk-to-distress and creep toward smaller deals. With the number of “eyes on deals” and current market multiples, it is going to be increasingly difficult to generate targeted returns. It is probably naïve to believe you can invest “smarter”, finding value others don’t see.
So how do private equity investors continue to make money and enjoy deal success? In the complimentary webinar, David McCarthy, Principal at D.R. McCarthy & Associates, Inc., and Jeffrey Pomerance, Esq., Head of the Transactional Practice at SulmeyerKupetz, focus on what private equity investors should address in today’s current investment climate to build value and continue to enjoy sustained growth.
This webinar addresses the following issues pertinent to private equity investing in almost all industry sectors:
- The present state of private equity activism
- Rethinking the private equity investment model
- Concrete steps to building value in private equity investment in 2018
- New return opportunities.