Private Equity Outlook for 2021

B E N C H M A R K I N T E R N AT I O N A L

PRIVATE EQUIT Y OUTLOOK FOR 2021

B EN CHMAR K

I N T E RN AT I O N A L

PRIVATE EQUI TY OUTLOOK FOR 2021 The private equity sector has enjoyed a strong start to 2021, with momentum expected to continue throughout the year. Record fundraising combined with historically low rates of interest and an increase in new funds has resulted in a strong market with high levels of deployable capital available.

Benchmark International

INCREASED COMPETITION DRIVING DIVERSITY

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The influx of new funds created new levels of competition within the private equity sector in 2021, leading to increased diversity.

Private equity firms are evolving, with holdings across a wide variety of asset classes and alternative investment is now driving higher annual net new money flows.

TA X L AW U N C E RTA I N T Y Uncertainty regarding tax laws is leading many private equity investors to chase deals prior to any capital gains tax increases that could eat into profits. Private equity funds are increasingly focused on value creation and portfolio company growth.

The trend towards sustainable value creation looks set to continue, with private equity firms exploring environmental, social and governance (ESG) considerations as an essential aspect of any new portfolio company. Analysing risk across ESG considerations is a hot priority in 2021.

Benchmark International

E M P H A S I S O N S US TA I N A B I L I T Y

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You can learn more about the surge in private equity deals during 2021 by visiting the blog of Benchmark International.