For our latest private equity survey we asked international financial specialists which regions and sectors are of interest for investments in the coming years. We were also interested in the impact of Brexit on the industry and the fears of an emerging investment bubble.
Q1: Why is private debt a good alternative to the classic private equity investment?
Although private debt and private equity are targeting the same universe of medium size companies, they are offering very different risk/return profiles by virtue of addressing different financing needs in the capital structure of those same companies. As such by providing complimentary risk/return attributes, institutional investors would typically have an allocation to both strategies albeit in different proportions.
End of February 2018 EIOPA provided the EU Commission with its’ final advice on specific items in the Solvency II Delegated Regulation, which is – within the capital markets union action plan (“CMU”) – part of the current Solvency review. The mandate given was a “review of unjustified constraints to financing […] in view of removing barriers to investments in unrated bonds and loans and in unlisted equity, in order to improve insurers’ ability to invest in private placement offerings and in private equity.”
For Member of the European Parliament Jakob von Weizsäcker the immediate impact of Brexit is obviously bad. But there could be some positive effects for the EU down the road however. For Jakob von Weizsäcker a joint Franco-German strategy would be the best approach to build a better capital market for the EU and the Euro area post Brexit. Continue reading
It is difficult to name a sector that has not been impacted by digitalization in recent years. Somewhat ironically, however, the very private capital providers whose investments in tech startups are rapidly driving change in other sectors have hardly undertaken any steps to develop their own business models. In the meantime, pressure within the sector is rising, driven by lower returns, greater transparency, and an ever-growing volume of regulatory requirements.
Read in this article why Frank Dornseifer, Managing Director of Bundesverband Alternative Investments e.V. (BAI), thinks that PE investments are becoming more attractive under Solvency.
In these greeting remarks, Valdis Dombrovskis, European Commission Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, gives us an update on the plans of the European Commission to create a single market for capital in the EU. Continue reading
The dossier Private equity in Europe has been compiled to provide statistical information on the private equity investment market in selected European countries. You can download the dossier for free from our website. Continue reading