🙌 What’s in store for PE in 2022? 🙌

2021 saw one of the highest levels for M&A deals for many years. It reflected a degree of post-Covid catch-up and very positive sentiment.

So: Which trends will dominate the year 2022?

💻 Adoption of disruptive technologies

Managers are looking to cut costs. Therefore, disruptive technologies like DLT, AI, and RPA could play a meaningful role. 

AI allows managers to analyse large amounts of data faster. Many believe it will speed up the deal-making process. Automating routine tasks could help firms achieve greater efficiency. Also, DLTs can support record-keeping and audibility in complex asset types like private equity.

💲 Strong fundraising

Private equity inflows continue to grow at a steady pace. Accordingly, I expect that 2022 will see similarly vigorous fundraising activity.

📈 Inflation, supply chain issues and high-interest rates

The Bank of England has raised interest rates for the first time since 2009. Many economists believe that future increases are likely. Ongoing supply chain issues pose a significant risk for private equity firms. To succeed, they will need to model risks and adapt accordingly.

🚀 SPACs 

SPACs have become an increasingly important exit consideration for the PE sector. Following a competition increase, SPAC sponsors have been looking for debt financing. With multiple financing options available, the number of SPACs formed in 2022 could surpass the total number of SPACs developed throughout the previous years.

What is your view? Please leave the comments below. 👇🏾

#innovation #ai #privateequity #technology #SPACs #data #RPA