In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 1Q 2022 that are top of mind for PE investors.
Companies of all sizes may need to continually assess where outsourcing can create value for stakeholders. Areas that are not core value-creating activities and those where the company lags in technology or cost efficiency can be strategic outsourcing candidates.
Five takeaways from 1Q 2022:
- The macroeconomic environment is top of mind for investors as uncertainty impacts growth, inflation and interest rates
- PE deal activity decreases 27% from 1Q 2021: despite a softening in activity from the breakneck pace of last year, this level of activity is still quite robust
- Geopolitical uncertainty: PE firms are using the same playbook they used during the COVID-19 pandemic to manage the impact from the war in Ukraine
- PE exit activity decreases 60% by value from 1Q21: PE will continue to do what they have always done, which is execute on strategy and look to exit when conditions are more amenable
- Secondaries market reaches new heights: GP-led deals are key drivers of this trend, as they are providing optionality for LPs
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Duration 10m 00s
In this seriesseries overview
PE Pulse: Five takeaways from 1Q 2022
What PE is outsourcing to create value
How PE can use the ‘See, Solve, Scale’ process to screen investments
Why mentoring matters for women in PE
How PE firms can win tech deals
EY-Parthenon Principal, Strategy and Transactions, Ernst & Young LLP; EY Global Head of Software Strategy Group
PE Pulse: Five takeaways from 4Q 2021
What AI has done for Hg
What PE sees in professional sports