Alexandra Prigent-Labeis, Managing Partner of Accellency, moderated « the top 5 trends in private markets » panel at IPEM 2022 with exceptional speakers: Joana Rocha Scaff, Managing director and Head of Europe Private Equity at Neuberger Berman and current Chair of the LP Committee of the BVCA (British Private Equity Association); Johnny el Hachem, CEO of Edmond de Rothschild Private Equity and Jim Garman, Co-Head of EMEA Goldman Sachs Asset Management in charge of alternative assets.
Here were the key takeaways:
The Democratisation of Private Equity
Down to €50,000 tickets. Expanding from high net worth to retail distribution.
Technology changing the game with digital platforms offering premium UX.
What about liquidity and transparency? Accompanying retail LPs on their learning curve.
The “Barbellisation” of the GP landscape
Large GP platforms reaching JUMBO status as a result of a multi-strategy consolidation frenzy, in order to serve LPs across their asset allocation.
Specialist GPs in the spotlight with increased interest from LPs for specialised teams and strategies, whether by sector, investment stage, EV size or business model.
Private companies staying private longer
New liquidity paradigm leading to market normalisation.
Public markets sell down postponing and reducing IPO opportunities.
GPs may need to adapt to support fundamental growth as healthy companies are likely to stay private longer.
A call for purpose-driven private markets
2022, a year of catastrophic climate events: Covid, energy, geopolitics…
The widening inequality gap: Are private markets playing their part? Calling for long-term investment to accelerate transition.
Shift in investors’ asset allocation
Focus on Direct lending and floating rate private credit with low duration profiles in a rising rate environment.
Private markets remaining core to allocation with resilient valuations vs. listed asset volatility.
Potential shift from Equity to Credit to Real Assets ahead of a general economic slow down.