With a number of PE funds in the region nearing the end of their lifecycles they are clearly facing exit pressure from Limited Partners (LPs). Do you expect to see the pace of exits to increase this year?
If the capital markets continue their positive development, I expect more exits through IPOs in
Despite the clear improvement in regional stock markets, the IPO issuance is yet to pick up pace. Is this worrying for the PE industry as many PE players are waiting for an opportune time to exit some of their investments?
Yes, a healthy IPO market is usually the sign of a vibrant PE and VC industry. I would welcome this development very much, it would benefit us all.
Due to the very nature of the industry, PE investments in the region remain unannounced or are under reported. In many cases the valuation and mode of financing remains opaque. Going forward is there any scope for bringing about more transparency in the industry?
This is really what
Evidence suggest that there is a significant overall increase in liquidity in the region does this mean the region is ready for leveraged buyouts (LBOs)?
There is tremendous liquidity in the region, but the number of large LBOs one can do is limited, simply because there is a limited number of large companies to buy, and a lack of even larger companies to sell to. But the cycle of buying and selling is the core determinant of success of the PE industry. So I think the activity will be largely focused on the so-called mid-market buy-outs, which is really the back bone of any economy worldwide anyway, the many family owned businesses, or medium sized public companies.. There is enough to do in this space.
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