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.
Presenters
Winna Brown
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLPPodcast
Episode 47
Duration 10m 00s
In this series
series overviewPE Pulse: Five takeaways from 1Q 2022
Episode 47
Presenters
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
What PE is outsourcing to create value
Episode 46
Presenters
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
How PE can use the ‘See, Solve, Scale’ process to screen investments
Episode 45
Presenters
Executive Director of the Nelson Center for Entrepreneurship at Brown University
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
Why mentoring matters for women in PE
Episode 44
Presenters
CEO of Level20
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
How PE firms can win tech deals
Episode 43
Presenters
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
EY-Parthenon Americas Software Strategy Group Leader
PE Pulse: Five takeaways from 4Q 2021
Episode 42
Presenters
What AI has done for Hg
Episode 41
Presenters
Senior Partner and Executive Chairman of Hg
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
Which three geopolitical risks PE investors should watch
Episode 35
Presenters
EY EMEIA Activation Leader, Geostrategic Business Group
EY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
