Apax Partners publishes report on the future of private equity “Unlocking global value”
12 May 2006
Apax Partners, one of the world's leading private equity firms,
today published its view of the private equity industry "Unlocking
global value - Future trends in private equity investment
worldwide". The report follows its 2002 report "The Double
Helix" in which it accurately predicted deal sizes increasing
significantly and liquidity improving. This year's report,
produced with the Economist Intelligence Unit, reviews the private
equity operating environment for 33 countries.
The world's best markets for private equity investment have
broadly Anglo-Saxon economic characteristics - stable regulatory
environments, liberal policies towards private enterprise,
well-funded financial systems and appetite for
entrepreneurship. Worldwide, the private equity industry has
significant potential for future growth, particularly in the major
economies such as Italy, Germany and France. The BRIC
countries - Brazil, Russia, India and China - have huge potential
as they begin to overcome their complex operating environments and
regulatory structures. Continental Europe is still undergoing
a restructuring of its industrial landscape and there are many
former state-owned companies or industrial conglomerates that will
become attractive buyout targets. The US and the UK have
enjoyed the most dramatic growth and lead the way in the private
equity industry.
Globalisation will be a defining theme going forward as fund
sizes are expected to increase dramatically in the next five to
twenty years. If the value of private equity activity in
every OECD country were to reach the simple and comparatively
modest benchmark of 1% of GDP, another US$200 billion would be
added to the global investment total. The industry has
had favourable economic conditions in recent years, however with
interest rates on a long-term upward trend conditions will
inevitably get tougher. The industry's challenges will be
those associated with growing maturity as the size and scale of
funds increase. The most reliable ways to deliver higher
returns will be value creation through sector knowledge, industry
expertise and active ownership.
Dr Martin Halusa, Worldwide CEO of Apax Partners commented, "the
future is not without risks, but managing risks in a cyclical
market is an essential part of what we do. Our success has
been in large part due to our ability to deliver exceptional
returns, irrespective of market conditions, to our investors.
The challenge is to maintain that performance as the scale of the
opportunities continues to grow."
A copy of the report can be found at: http://www.apax.com/en/leadership/index.html
- ENDS -
NOTES TO EDITORS
Apax Partners is one of the world's leading private equity
investment groups. It operates across the United States,
Europe, Israel and Asia and has more than 30 years of investing
experience. Funds under the advice of Apax Partners total $20
billion around the world. These Funds provide long-term
equity financing to build and strengthen world-class
companies. Apax Partners Funds invest in companies across its
global sectors of Tech & Telecom, Retail & Consumer, Media,
Healthcare and Financial & Business Services.
For further enquiries, please contact:
Siobhan Loftus, Director of Marketing
Tel: +44 (0)20 7872
6495
Email: Siobhan.Loftus@apax.com
Clare Fancourt, Press Officer
Tel: +44 (0)20 7872 6476
Email: Clare.Fancourt@apax.com