Following the onset of the pandemic in 2020, many in the private equity industry put plans on hold as they worked to quickly respond to the COVID-19 crisis. But what's in store for 2021?
In this short video, members of our private equity team discuss highlights of our 2021 private equity survey canvassing over 100 private equity and pension fund leaders for their thoughts on where the industry is headed.
- Cautious optimism. Part of the optimistic sentiment we heard from respondents is connected to the volatility of 2020, with most survey participants projecting significant improvement across transaction volumes and debt financing terms in 2021, and increased M&A activity.
- Shifts in deal terms. More earn-outs are expected as a solution to address pricing differences between buyers and sellers. And fewer respondents said they would increase their use of R&W insurance on deals.
- Sectors drawing attention. Especially in the current environment, technology reigns as the sector of choice for dealmakers. Industry and agriculture, entertainment, personal care and services also got high marks. Canada's oil and gas industry may also see more activity as consolidation takes place for companies looking to reconfigure their asset mix.
- Fundraising developments. Fundraising remained strong in 2020, and the outlook for 2021 is equally positive. Sponsors and investors are focusing more on distressed and real estate investments—and GPs are turning to bespoke solutions to manage portfolio companies.
Watch the teaser below and register for the webinar on February 18 here.