Hi all -
I just got invited to do an interview this week with a NYC-based PE shop ($2bn+ fund). It came up quite unexpected, so I am scrambling to get ready.
While I think (hope) I got the technical/mechanical aspects down, I could use some help when they ask me for investment ideas/trends, i.e., "where do you see opportunities in the market" and "where would you invest today."
Given the current economic backdrop and market trends, which sectors do you guys think will garner the most attention?
Consumer/Industrial sectors: improving economic backdrop, strong U.S. GDP growth, falling energy prices, etc.
Energy sector: ability to capitalize on low (and potentially oversold) valuations, but tough to see where the market will be in 3-5 years ahead of a potential exit; perhaps the focus will be on oilfield service companies that focus on the cost side of production (as companies look for ways to cut costs/improve margins amid the new paradigm)
TMT sector: continued investment and focus on technology (mobile, cloud, etc.), access to intellectual property, etc.
What about European countries (understanding that they are not all created equal)? Are the macro risks still too large or might this be a good opportunity to buy companies at decent multiples (either as part of a buy and build strategy or in hopes of selling once the EU zone strengthens)?
While I fully appreciate that it's tough to use a top-down approach to PE investing, I'm just trying to get a sense for general trends and sentiment.