April'19 has been another strong month for PE/VC investments, 79% higher than April'18.
PE/VC Agenda 2018 – Overview of the private equity industry landscape
Private equity: winning in a new era
Private equity firms are operating today in an increasingly uncertain environment. After the global financial crisis, the most important lesson learned was: expect the unexpected.
Against this backdrop, how do you balance buy- and sell- side opportunities and expand into new markets with a continued focus on value creation in existing portfolios -- all the while meeting expanding regulations and risks? Are you strategically positioned? Discover how we can help you gain perspective on issues and trends affecting the private equity industry.
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Improve the operating model (Management companies)
PE firms are increasingly challenged to develop and deploy a more complex operating model than ever before. Firms turn to EY for guidance on extending into new verticals, reaching out to new types of customers and managing data from an ever-widening array of sources.
Alternative asset managers need to drive efficiency through multi-year target operating models and infrastructure strategies to remain competitive. These improvements align strategic growth plans with vendor and service provider activities. EY defines and monitors data analytics and key performance indicators to assess data governance and risk against these target models.
Large asset managers have hundreds of legal entities in multiple countries and continually create new ones – all with different compliance obligations. Many are outsourced and require local knowledge. EY gathers the data, leverages local EY teams knowledgeable in accounting and tax laws, performs data analytics to identify trends, risks and opportunities and monitors filing requirements.
Put dry powder to work (Funds)
High valuations, competition from corporate acquirers, and increased macro- and geopolitical uncertainty are leading to one of the most challenging periods for deployment on record. Firms have US$580b+ in dry powder, but need help finding attractive targets. EY’s proprietary investment approach, driven by deep sector insight and analytics, enables firms to confidently place winning bids that generate appropriate returns.
The intense competition for a limited number of deals raises stakes to win for private equity firms. A proprietary investment approach driven by sector insights enables firms to confidently place winning bids that generate appropriate returns. EY’s global origination team turns opportunities into actionable strategies. Our proprietary knowledge and advanced analytics help develop strategic capital options to help firms achieve success.
Private equity firms conduct diligence on assets across strategic, financial, tax, operational and HR issues. Firms historically used issue-based advisors, managing different parties and consolidating findings at the end of the process. Employing EY’s integrated diligence approach at the early stages of a transaction provides more effective, comprehensive diligence on an asset, giving firms a distinct competitive advantage.
Create value and realize returns (Portfolio companies)
Multiple expansion (buy low, sell high) is no longer a significant source of return. Clients look to EY for guidance on the operational improvements that accelerate transformative growth and create value in portfolio companies.
Private equity firms face increasing pressure to attract fresh capital and create value. This requires generating greater investment returns and facilitating transformative growth in the portfolio. EY’s heritage serving the world’s fastest growing companies addresses these challenges across all stages of the deal lifecycle, including deal origination, diligence, inception, optimization and exit strategy.
Private equity firms must plan exits rigorously in order to successfully monetize their investment during the exit process in today’s challenging environment. Executives must identify key short- and long-term priorities prior to undertaking an IPO or alternative transaction. EY can advise deal teams and portfolio companies on exit alternatives, assess exit readiness, prepare a company for an exit/IPO and create a value story for targeted buyers.
- Vivek Soni
Partner and Leader of Private Equity Advisory
- Dilip Dusija
Private Equity Advisory
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To reach operational excellence, private equity firms need the right insights to learn as they go – discovering new ways to overcome obstacles and seize opportunities.
According to EY’s Private Equity Monthly Deal Tracker - February 2019, investments worth US$2.6 billion across 61 deals and exits worth US$472 million across 10 deals were recorded.
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July 2018 recorded US$1.5 billion in deal value, at par with investments recorded in July 2017.
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May 2018 recorded US$3.2 billion in deal value, a 7% decline compared to US$3.4 billion recorded in May 2017.
In this report, we have made an effort to bring together the key tax and regulatory frameworks applicable to PE / VC investments in India.
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PE/VC investments in India in the first half (1H2017) witnessed sharp increase on the back of some very large deals with size of each of them in excess of USD 300 million.
The report highlights the key enablers and benefits of pooling foreign funds in India domiciled fund.