2014 global private equity survey

Outlook

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Impact of biggest challenges

EY – Impact of major challenges on PE firms

Nearly two-thirds of CFOs believe that the regulatory environment will have a major impact on their operations over the next two years. European firms expect to feel the adverse effects most sharply.

Fund-raising competition, investor demands and investment activity will also have significant impacts. These three factors are linked. Growth opportunities are promising, but they come with increasing competition and due diligence from investors.

 

Strategic priorities

EY – Strategic priorities for PE firms, by assets under management and region

CFOs are moving away from relying on people to support growth and business operations. Increasingly, they are looking instead to improve processes and invest in technology.

In fact, respondents viewed enhancing processes as the most important priority to support operations. That finding was consistent across every region and every fund size.

 

Growth opportunities

EY – Investment strategies for PE firms in next three years

CFOs are bullish. More than 80% of firms intend to raise capital in the next three years, and CFOs expect their next fund to either be equal to (45%) or larger than (39%) their last one.

Firms generally choose to invest in their core strategies, although many have diversified slightly to reap the rewards of new capital.

Describe the impact on finance/operations from challenges over the next two to three years.

EY – Impact of major challenges on PE firms

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In support of your firm’s business strategy, prioritize finance/operations investment in people, process and technology over the next 12 months.

EY – Strategic priorities for PE firms, by assets under management and region

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What are the investment strategies your firm intends to manage within the next three years?

EY – Investment strategies for PE firms in next three years

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