2023
Global Private Equity Outlook
Today's private equity (PE) landscape stands in contrast to 2021’s anomalous levels of activity— an oncoming global economic downturn, rising interest rates and geopolitical tensions have resulted in a slowdown in deal activity, yet fundraising and buyouts remain above pre-pandemic levels. Learn more about how dealmakers are finding creative solutions for growth during these uncertain times.
*Based on insights from a survey of 100 senior PE executives in Asia, Europe and the U.S.
Want to learn more? Click the link below to read the full report and insights.
Download The Report
How do you expect LP scrutiny of ESG issues / ESG reporting to change
in deals over the next three years?
Significant increase
Moderate increase
No change
Click a location to see results
Asia-Pacific
EMEA
North America
Moderate decrease
Download The ReporT
17%
31%
49%
3%
5%
30%
45%
20%
2
%
2
%
36%
60%
Click to download the previous reports
Key Findings
Over half say their firm’s use of private credit financing has increased in the past three years
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
Wide regional variation exists in performance on DEI initiatives
63% plan to make a GP-stake divestiture in the next 24 months
Use of NAV and subscription line financing rockets to 98%
65% expect growth in GP-led secondaries to continue
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
C-Suite Executives
GP Fund Level
Hover to view chart for:
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
C-Suite Executives
GP Fund Level
Hover to view chart for:
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
C-Suite Executives
GP Fund Level
Hover to view chart for:
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
C-Suite Executives
GP Fund Level
Hover to view chart for:
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
C-Suite Executives
GP Fund Level
Hover to view chart for:
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
It is becoming increasingly common for GPs to turn towards more permanent methods of raising cash by divesting a piece of their PE firms to specialist investors, with a majority of respondents planning to do so in the next 24 months. The most popular destination of proceeds raised this way is a two-way tie between GP commitments for the next fund and vertical investment (59%), with fueling growth following in a close third place (54%).
63% plan to make a GP-stake divestiture in the next 24 months
Interestingly, GP stakes can also allow GPs to secure a portion of their next fundraising by having the GP-stake buyer commit to invest, as an LP, in one or more of their next funds.
Sabina Comis, Partner
ESG is here to stay and beyond regulatory requirements, LPs are seeing the material impact that portfolio companies’ ESG credentials can have on financial performance. Our research shows that EMEA leads the way with 60% of respondents from the region complimentary of DEI initiatives at both the GP level and by their portfolio companies’
C-suites, followed by North America and APAC.
Wide regional variation exists in performance on DEI initiatives
C-Suite Executives
GP Fund Level
Hover to view chart for:
The report highlights the increased "retailization" of private equity products, signaling the possibility of a more democratized landscape. Regulatory barriers to retail investors remain extensive but permitting access to PE would make more capital available to GPs.
37% believe retail access to PE vehicles will expand as an after-effect of the COVID-19 pandemic
As the large traditional managers continue to push into alternatives and the PE industry targets retail investors, will the convergence also extend to fee structures? We’ve seen this before. People don’t know exactly what that will look like, but it’s coming.
Chris Field, Partner
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
Private credit is continuing to enjoy the spotlight, with respondents pointing to greater flexibility on financing terms, provision of higher leverage levels and greater predictability as the top three advantages of this type of financing. 51% of respondents have increased their use of private credit financing in buyouts in the past three years, and 82% are considering adding direct lending to their strategy over the next two years.
Over half say their firm’s use of private credit financing has increased in the past three years
GP-led secondaries have been on the rise since COVID-19. According to this year’s report, 65% of PE respondents expect this trend to grow and 50% of respondents report that they are “very likely” to consider this deal type at present.
65% expect growth in GP-led secondaries to continue
NAV and subscription line financing facilities are growing in popularity, with 38% of respondents having increased their usage, and a further 60% having maintained prior levels of use. Our research points to a wealth of benefits of this type of financing, with improving liquidity chosen by 36% of respondents, followed by maximizing internal rates of return (31%).
Use of NAV and subscription line financing rockets to 98%
Register here for Dechert's Global Private Equity Outlook Webinar on December 15th