Susie joined a group that included Joana Castro (Unigestion), Steve Currie (Alantra), Richard Howell (PAI Partners) and Sam Kay (Travers Smith), who discussed the changes seen in the private equity industry over the past 12 months, and how they see the future of investment changing.
A main takeaway from the session is how the current political climate will affect the way private equity firms operate. The UK general election results, Brexit and US-China trade “may mean a bit of a pause and everyone takes a deep breath before they commit to funds”, says Travers Smith’s Sam Kay.
However, this hesitation is not necessarily a cause for worry, indicates Stanford. “On the investment side, even if we do have a cyclical downturn, if you are backing what we call category-defining brands, they disproportionately win and often that accelerates during a downturn.”
She goes on to comment specifically on the future of the UK market, demonstrating that investors choosing the right firm with experienced, dynamic team members can make all the difference. “In general, seasoned LPs seem remarkably sanguine about what is going on in the UK and it is very easy to get inwardly focused about how uncertain the UK feels, but actually lots of territories have a lot of challenges and, in the end, you have to deploy your capital somewhere. We have been through cycles before, but it probably makes sense to back experienced managers who know how to navigate uncertainty and market dislocation.”
Read the full article on Unquote here.
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