Apax Partners publishes report on the future of private equity “Unlocking global value”
12th May 2006
Apax Apax Partners, one of the world's leading private equity firms, today published its view of the private equity industry "Unlocking global value - Future treApax 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".
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
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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
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6495
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Clare Fancourt, Press Officer
Tel: +44 (0)20 7872 6476
Email: Clare.Fancourt@apax.com
