2022 preqin global private equity venture capital report

Investing in Asian private equity comes with a unique set of challenges and risks beyond what this paper has explored. The 18-month total of $1.7 trillion is by far the strongest year and a half in the industry's history (see Figure 3). Retrieved from: https://www.spglobal.com/esg/insights/key-esg-trends-in-2022. Financial services (2.5 times) and information technology (2.2 times) recorded the largest multiple declines among PE subsectors, while rising commodity prices drove multiple expansion in raw materials and resources (+2.6 times). But ESGs growing impact on private markets goes beyond just dedicated funds and deals: most funds (of any strategy) now consider ESG risk factors in due diligence, and some explicitly include ESG concepts in their value creation plans. However, the overall number of firms not considering ESG factors when looking for new investments remained unchanged from last year at approximately 20%. 2022 Preqin Global Private Equity Report. 9 Source: AVCJ, data as of September 30, 2022. For those that can identify and partner with such private equity managers, there exists a promising opportunity for outperformance in the region. [14] S&P Capital IQ Pro Platform (as of 14/02/2022). Globally, fundraising fell 15 percent from the all-time high achieved in 2021 (Exhibit 3). The research defines outperformers as companies whose score on a series of assessed ESG metrics improved over time. This material was not intended or written to be used, and it cannot be used with any taxpayer, for the purpose of avoiding penalties which may be imposed on the taxpayer under U.S. federal tax laws. High inflation persisted throughout most of 2022, prompting central banks around the world to increase interest rates at a historic pace. Information regarding expected market returns and market outlooks is based on the research, analysis, and opinions of the investment team of the Private Markets Solutions Team. 18% of APAC investors say that LPs demanding diversification and fierce competition against larger firms pose other significant fundraising challenges. Shifting Gears: Private Equity Report Midyear 2022 - Bain Infrastructure and natural resources (NR) overcame broader market headwinds in 2022 to set a new fundraising record of $158 billion (Exhibit 9). 11 Bain & Company, "Asia-Pacific Private Equity Report 2022". As the industry narrative turned from beta to alpha, there was less alpha to be had in 2022. Sustainability-related deals (the E) increased by 7 percent to nearly $200 billion, proving resistant to the deal-making headwinds that affected other asset classes. Notwithstanding these risks, a variety of factorsaccelerated growth/leapfrog potential in underpenetrated industries, opaque and attractive valuations relative to developed markets, and overlooked opportunities for improvements in operational efficiencycontribute to the regions potential for outperformance. Private markets fundraising fell 11 percent to $1.2 trillion, as the denominator effect affected some LPs ability to allocate capital. The Market Monitor series includes a wide array of market charts and views to guide your investing discussions. MSIM announced today that the 1GT climate private equity strategy (1GT) co-led a $50 million Series B funding round for Everstream alongside existing investors StepStone Group and Columbia Capital. These conclusions are speculative in nature, may not come to pass, and are not intended to predict the future of any specific Morgan Stanley investment. For example, recent McKinsey research found that publicly traded ESG outperformers that also outperformed peers on margin and growth delivered 200 basis points in excess return to their shareholders over companies that only outperformed financially.6McKinsey research to be published. Weitere Einzelheiten knnen aus unseren Nutzungsbedingungen entnommen werden. Each MSIM affiliate is regulated as appropriate in the jurisdiction it operates. Across all regions, digitalization is high up on PE agendas and awareness has risen significantly. France-based fund managers are leaders in ESG investingLONDON, April 27, 2023 (GLOBE NEWSWIRE) -- Preqin, the global leader in alternative assets data, tools, and insights, published its Private Equity in France 2023: Preqin Territory Guide. Indeed, LatAm grew by an outstanding 225%, to $19.5 billion in 2021 from almost $6 billion in 2020, with the top 12 deals accounting for a third of the total deal value in the region. (As of 20/01/2022). Source: S&P Global Market Intelligence. OPAQUE ENTRY VALUATIONS Funds over $5 billion collected a record $445 billion in aggregate, a 51 percent increase over funds of a similar size in 2021. Das Naes Unidas 14401, Torre Hotel Chcara Santo Antnio So Paulo, BR-SP. Paired with lower valuations public market valuations trading as much as 40-50% lower than the US on a P/E basis,8 and private markets valuations that have almost halved from their peak9 there should be a particularly attractive opportunity at hand. Since these charges and expenses are different depending on a contract and other factors, MSIMJ cannot present the rates, upper limits, etc. After more than a decade of rapid fundraising growth, strong macroeconomic headwinds slowedbut did not stopprivate debts growth. Conversely, dollars raised by sub$5 billion funds decreased by 28 percent. Despite these challenges, 2022 is likely to be the second-best fundraising year on record (after all data is reported), demonstratingthus fardiscipline and longer-term thinking by LPs. The decline was most evident in Europe and Asia, while fundraising in North America increased slightly (Exhibit 1). Source: AVCJ Research, as of 31 December 2022. Quantitative tightening and dislocation in asset prices raised fears of an economic slowdown. After a frenzied 2021, private equity (PE) deal volume decreased 26 percent to $2.4 trillion, while deal count fell 15 percent to just under 60,000. New platforms comprised 28 percent of total transactions in 2022, 14 percentage points lower than five years ago. This material has been issued by any one or more of the following entities: EMEA: This material is for Professional Clients/Accredited Investors only. For those who are not professional investors, this document is provided in relation to Morgan Stanley Investment Management (Japan) Co., Ltd. ("MSIMJ")s business with respect to discretionary investment management agreements ("IMA") and investment advisory agreements ("IAA This is not for the purpose of a recommendation or solicitation of transactions or offers any particular financial instruments. In 2022, mezzanine strategies were most in favor, posting record fundraising totals and more than tripling 2021s haul. New government policies that provide incentives for certain ESG investmentsmost notably the US Inflation Reduction Act of 2022are likely to strengthen this correlation further. Download the Complimentary Report. However, top-performing Asian private equity funds show historical performance that often exceeds top-performing North American and European funds.2 This outperformance has generally been delivered with lower levels of underlying leverage, as company-level debt is less readily available and/or less attractively priced in Asia versus Western markets, and private equity subscription lines of credit are less commonly used by funds in Asia.3 General partners (GPs) in the region that are able to identify the right market opportunities and execute accordingly have shown that they can indeed deliver that much desired risk premium.

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