Global private equity report 2008
The world has changed for private equity. Out is the virtuous circle of low interest rates, steady economic growth, easy leverage and rising portfolio company valuations. Instead, tough economic times are beginning and capital markets are having a crisis of confidence.
Our
2008 global private equity report highlights the challenges private equity firms are facing – ranging from issues that all agree are fundamental, such as how to create sustainable value, through to those that many private equity houses have yet to take seriously, in particular sustainability.
The topics covered in the report include:
- Creating sustainable value
- Accessing emerging market growth
- Building the business model
- Appreciating the business case for responsibility
- Reporting fair value
- Addressing tax in a wider world
Taken individually these issues have implications of varying seriousness for private equity. When combined, however, they mean that firms have to make significant change across their firms – from value creation, through to structuring, controls, reporting and so on.
Just as the benign conditions of the past five years fostered a phase of growth when large buyouts became increasing dominant, so in the coming years the industry will reshape itself again to adapt to the new environment.