In an insightful conversation with CBN at the 9th International Funds Summit & Expo, Jasper Van Heesch, Private Equity Sector Senior Analyst & Coverage Director at RSM UK, unravelled the nuances of the sector's present and future.

At the crossroads of economic uncertainty, escalating interest rates, and geopolitical tension, the landscape of private equity investment stands resilient. Reflecting on the defining 2023 trends, Van Heesch delineated the enduring dynamism within private equity. Despite the upheavals, the sector remains engaged, resonating notably with companies exhibiting three core attributes: annual recurring revenue, strong growth prospects, and sizable margins.

Delving into the behavioural shifts of fund managers imposed by the macroeconomic headwinds, Van Heesch painted a bifurcated picture: While investment discipline remains unswerving, engaging with companies that share the three core attributes, there is an emphasis on existing portfolios.

The conversation shifted towards the tech industry, focusing on Europe's startups seeking avenues for exit. Van Heesch foresaw a shift towards private equity buyouts as a prevalent exit strategy, especially amid realistic valuations and diminished venture capital funding.

Anticipating the trajectory of private equity beyond 2023, Van Heesch alluded to a tempered yet stabilized deal activity.