Strategic leaps are creating new pathways for value creation for private equity firms, EY’s survey finds.
- With increasing amounts of capital flowing into private equity, fund managers realise the stakes have never been higher for making the right choices.
- In talent management, fund managers see improving diversity, equity and inclusion (DE&I) as key to building a sustainable private equity brand.
- Fund managers continue to evaluate new product offerings, from expanding sustainable investment options to cryptocurrency.
Private equity and venture capital firms have never been as valuable as they are right now, this is according to EY’s 2022 Global Private Equity Survey.
The survey, which captures the insights and observations of over a hundred private equity COOs, CFOs and financial executives, highlights the key initiatives businesses need to consider to protect and maximise their value in the market.
One of the key findings from the survey is that many private equity firms are moving to adopt more mature business processes, from internal reporting and compliance to fully developed financial planning and analysis functions. While larger firms, those with excess of $15 billion in funds are leading the way, all firms are stepping up their game as they keep pace with the larger players in this space.
In the latest Monterey Insights Reports, private equity and venture capital accounted for $325.9bn of assets for domiciled and non-domiciled funds in Jersey. In Guernsey, private equity and venture capital funds also remain the most popular product of serviced funds, topping asset allocations with US$388.4bn.
The Channel Islands continue to experience growth in private equity and venture capital funds and local fund services businesses would benefit from considering the themes highlighted in the survey in the future strategies, as Ove Svejstrup (pictured), Associate Partner at EY in Channel Islands, explains: “It’s encouraging to see the recent Monterey Insights figures, which highlights private equity and venture capital as the main driver in the Jersey and Guernsey funds markets.
“As experienced funds jurisdictions, both islands are in a prime position to capitalise on this in an ever-growing market and provide the mature, robust business processes and financial planning that stakeholders require, which the Global Private Equity Survey suggests is a fundamental requirement.”
In addition, the survey highlights that the two increasingly important initiatives deployed by many private equity and venture capital firms are creating long-term value through a considered talent management plan, and incorporating environmental, social and governance (ESG) considerations.
Ove concludes: “Implementing and ingraining talent management and ESG considerations into the strategies of local businesses will be vital in ensuring the Channel Islands continues to grow in the private equity space.
“The figures from the latest Monterey Insights Report highlight both Guernsey’s and Jersey’s ability to continue to attract new assets and the continued growth in private equity funds. This, alongside the sustainable finance offerings across the islands, will continue to make Guernsey and Jersey strong jurisdictions of choice for fund managers and investors.”