2020欧洲私募股权展望（英文版）_20页_293kb

European Private Equity Outlook 2020 Summary

Core Content

The European Private Equity Outlook 2020 is the 11th consecutive publication by Roland Berger, a leading global consultancy, since 2010. The report provides insights into the expectations and trends of private equity (PE) professionals across Europe for the year 2020.

Main Messages

• M&A Transactions Stability: The outlook for M&A transactions involving private equity is broadly stable compared to 2019's record level. About a third of respondents expect no change, while 29% anticipate an increase and 39% expect a decrease.

• Economic Climate Concerns: The economic climate is viewed as less favorable, with 58% of PE professionals expecting it to deteriorate. This is a significant increase from the previous year. 70% of professionals are already taking measures to prepare for potential economic weakening, such as investing in resilient businesses.

• Industry Preferences: The technology, media & software, and healthcare industries are expected to be the most popular for PE investments in 2020 due to their resilience. These sectors are anticipated to see continued growth in valuation multiples, while automotive and construction industries may experience declines.

• Focus on Fund Management: Prolongation of existing funds and fundraising are the top priorities for PE investors in 2020, both increasing by over 10 percentage points compared to 2019.

• Valuation Multiples Overvalued: 94% of respondents believe current valuation multiples are overvalued, up from 91% in 2019. While tech and healthcare sectors may see further growth, automotive and construction are expected to face declining valuations.

• Exit Channels: Selling to PE or strategic investors is considered the most promising exit channel, with 42% and 28% of respondents expecting an increase, respectively. IPO exits and dual/triple tracks are expected to decrease slightly.

• Debt Financing Stability: The availability of external debt financing is expected to remain stable compared to 2019. Leveraged buyouts are slightly easier to fund, but refinancing and recapitalization are more challenging.

• Portfolio Value Creation: Cycle resilience of portfolio companies is the most important value creation measure in 2020. Environmental sustainability has seen the largest increase in importance, now ranking among the top five measures.

• Fundraising Trends: European PE investors raised a record EUR 86 billion in 2019, with the majority coming from buyout funds. The UK & Ireland and France & Benelux regions accounted for three-quarters of the total fundraising.

Key Information

• Survey Scope: The report is based on an exclusive survey of over 2,500 PE professionals across Europe.
• Competitiveness in Fundraising: 56% of respondents expect the competitive situation in fundraising to remain the same, 39% anticipate increased competition, and 5% expect it to ease.
• Resilient Businesses: Investing in resilient businesses is the most effective measure against a potential economic downturn, followed by preparing portfolio companies for challenging times and adjusting debt financing.
• Report Source: Roland Berger GmbH, located in Munich, Germany, is the publisher of the report.

Conclusion

The 2020 European Private Equity Outlook highlights a stable M&A environment with a focus on resilient industries and value creation through sustainability. Despite concerns over the economic climate, PE professionals are preparing for potential downturns by adjusting their strategies and investment focus. Fundraising remains a key area of interest, with a notable emphasis on prolonging existing funds and securing long-term capital.