SuperReturn 2010: Bumpy road ahead for Private Equity investors

A cura di: Alfonso Marone

In February the private equity industry came together in Berlin, Germany for its annual gathering of Limited Partners (LPs) and General Partners (GPs). Reassured by historical analysis of past booms & busts, some practitioners expect a new peak in capital allocations sometime this decade, while others quietly wondered if their investment houses would hold together long enough to enjoy the next wave of super-returns. One key message emerged loudly: future top quartile GPs will rely significantly less on financial engineering and much more on differentiated investment themes, deep sector expertise & insight, and renewed efforts on growing the EBITDA base of their portfolio companies.