New opportunities bring balance
to private equity

Sector watch

  • Share

2013 saw a strong rebound in the consumer sector. That activity was led by three factors:

  • Improved economic confidence in the US and Europe
  • Movement by China toward a more consumption-led economy
  • Continued rise of the middle class in other emerging markets

Activity in Asia-Pacific underscored the return of the consumer sector. In that region, the consumer sector knocked the energy, mining and minerals sector from the top spot in a ranking of investor interest.

PE investment by sector by value and volume

EY - PE investment by sector by value and volume

Technology was the other big story in 2013 (the Dell deal is excluded from the chart on this page, given its size). Low interest rates, ample credit and ongoing innovation (the cloud, big data and so on) fueled growth in this sector. In addition, the opportunity for roll-ups in the tech space is growing, as corporations become more active acquirers.

Finally, the health care sector was subdued, in part because of uncertainties in the US around the Affordable Care Act.

PE investment by sector by value and volume

EY - PE investment by sector by value and volume ×

Source: Dealogic