As we gear up for 2023, private equity firms are refining their investment and deal sourcing strategies. Though some GPs are ahead of pace in fundraising, LPs may take their time putting additional capital to work given the current market environment. And while the outlook for the coming quarters is uncertain, one thing is not: building during a downturn and delivering into the rebound is a recipe for success!
We’ve put together a few resources to help firms modernize their internal processes to win the best deals in today’s hypercompetitive environment:
- The SPS 2022 Deal Origination Benchmark Report (DOBR) is coming this fall. The DOBR is an annual industry standard comparing sponsors’ proportion of relevant deals seen to that of median, average, and top-performing firms across various peer groups. These statistics provide detailed insight into a firm’s market coverage against the industry, enabling them to gauge and improve their deal sourcing strategy. PE firms saw a median 15.8% of relevant deals in 2021. Download the 2021 Deal Origination Benchmark Report, or register to receive the 2022 report straight to your inbox.
- In this two-part episode of Bain & Company’s Dry Powder podcast last month, Karen Harris, managing director of Bain’s Macro Trends Group, discusses how private equity firms can factor global macro risks into their planning – without squandering time or resources on extreme scenarios that may or may not play out. “Smart investors aren’t wasting a huge amount of time scenario planning around the possibility of an asteroid hitting Siberia, when they’re trying to figure out a deal.” – Karen Harris, managing director of Bain’s Macro Trends Group
- DealEdge’s latest report looks at private equity value creation as a key differentiator for GPs facing a challenging fundraising environment. It examines what top quartile value creation really looks like: how much value do these buyout and growth deals create, how do they do it differently from other deals, and how does the profile of a top value creator change across sectors, vintage years, and deal sizes.”
As global economic factors have assumed an unpredictable order, smart investors are asking what they can do to minimize adverse outcomes and seize on upside opportunities. We hope this these resources provide some actionable intel to tip the scale in your favor.