Private equity, signs of recovery after 2023 freeze: industrial and energy sectors drive deals
Among the professionals interviewed was our founding partner Angelo Rocco Bonissoni, who explains the trend in PE fund activities and the interest and competitiveness of investors given the abundance of liquidity available in the 2024 market.
"Without a doubt, we can observe a significant evolution in the activities of PE funds during 2023, showing an interesting dynamic. In the first half of 2023 we observed a slowdown from the dynamism of the previous year, as confirmed by the available data. However, this did not mark a stable trend as we witnessed a remarkable recovery in the second half of 2023, a trend that consolidated and continued to gain momentum during 2024. This return to growth is particularly relevant in key sectors of the economy. These include cybersecurity, digital, tech, mechanical engineering, beauty and cosmetics, and energy. These sectors have proven to be particularly attractive to private equity funds because they offer promising investment opportunities supported by robust market trends and growing global demand. At the same time, traditional sectors such as engineering and energy have not been overlooked, as they continue to represent stable foundations of the global economy, with investment opportunities in both modernization and optimization of existing operations. Finally, the beauty and cosmetics sector has shown remarkable resilience, as demand for beauty products and services continues to remain robust despite economic fluctuations, with an increasing focus on sustainable innovation and wellness. Looking ahead to 2024, we face a landscape characterized by a range of news and expectations that will greatly influence the dynamics of the financial and investment sectors. Interest rates will continue to maintain a downward trend, reflecting the efforts of regulators in supporting economic growth and mitigating the effects of global uncertainties. Market volatility remains a factor to be considered. In addition, new rules and regulations, such as the capital ddl and tax changes, will require appropriate risk management and constant attention to compliance by companies and investors. In this complex and rapidly changing environment, we expect demand for advice from firms to increase as they seek to navigate through the challenges and opportunities presented by a changing economic environment. Financial advisors will need to be increasingly close to companies, ofirendoing strategic and operational support at all stages of the business cycle to ensure success and sustainability in the current environment. A key feature of this year is the abundance of available liquidity in the market, which is seeking investment opportunities. This creates a competitive environment for investors, prompting them to look for sectors and assets with potential for growth and profitability. Market volatility remains a factor to be considered. In addition, new rules and regulations, such as the capital ddl and tax changes, will require appropriate risk management and constant attention to compliance by companies and investors. In this complex and rapidly changing environment, we expect demand for advice from firms to increase as they seek to navigate through the challenges and opportunities presented by a changing economic environment. Financial advisors will need to be increasingly close to companies, ofirendoing strategic and operational support at all stages of the business cycle to ensure success and sustainability in the current environment."
The article is published in ItaliaOggi: https://www.italiaoggi.it/news/private-equity-segnali-di-ripresa-dopo-il-gelo-del-2023-2634396