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Private equity prepares for tougher days

2022-06-28T16:50:47.758Z

Its players believe that the companies in which they invest will be able to absorb the shocks of the crisis.



Private equity remains one of the most profitable asset classes over the long term.

This explains its great success with investors.

Between 2007 and the end of 2021, French funds invested in unlisted companies thus yielded an average of 12.2% per year, underlines a study carried out by EY and France Invest, the association which brings together most of the players in the sector.

A performance more than twice that of the CAC 40 (+5.1%) over the same period, boosted last year by the strong dynamism of the sector and the multiplication of business disposals at high prices.

But what about 2022?

The economic and geopolitical environment has deteriorated since the war in Ukraine.

Rising costs and companies' supply difficulties have intensified.

And interest rates have risen sharply in recent months, ending the period of easy money, from which the private equity sector has fully benefited.

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Source: lefigaro

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