PE - Current environment in Europe & US

Hi,

How is the current environment for PE investments, considering topics like Brexit (first decision made), Corona virus, upcoming elections in the US etc? Is it a risky envorinment full of uncertainty?

 
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I would say fairly risky. EBITDA is at alltime high for most companies, while in the meantime multiples are up too. People are scared of recession/global crisis. Well established PEs however are still buying cyclical consumer businesses (maybe also due to asset scarcity). In the end, if you are an established fund, you just keep buying and raising and through the cycle you will make your money (on carry or even management fee if you're big enough).

 

Awesome, thanks for the headsup. Figure 1.5 is pretty crazy. If something bad happens and rates go up things will turn sour really quickly.

Also, not sure about you other EuroMonkeys but my personal experience is that the multiple increase is primarily from green/tech/ecommerce. Most other sectors seem to stay the same.

I don't know... Yeah. Almost definitely yes.
 

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