Mark Hauser, CEO, and Founder of Markit Capital LLC, recently gave a keynote speech at the annual Private Equity Conference. He outlined several key trends and challenges facing the private equity industry over the next few years. Among these was the rise of alternative investments, geopolitical uncertainty, and increased regulation. Here we will take a closer look at some of Mr. Hauser’s most salient points.
As Mark Hauser pointed out, private equity has seen a dramatic increase in assets under management over the past few years. It is largely because institutional investors have been allocating more and more of their portfolios to alternative investments like private equity, hedge funds, and real estate. In fact, according to a recent survey by Preqin, nearly 60% of institutional investors now consider alternatives to be an important part of their portfolio.
With this influx of capital comes increased competition for deals, which Hauser believes will lead to higher prices and smaller returns in the future. He also anticipates that there will be more consolidation among private equity firms as larger firms look to acquire smaller ones to increase their scale and market share.
Another trend that Mark Hauser discussed is the increasing geopolitical uncertainty worldwide. The trend has led to increased volatility in financial markets and made it more difficult for private equity firms to predict the future performance of their portfolio companies. In addition, many countries are now imposing stricter regulations on private equity firms, which can limit their ability to invest freely.
Despite these challenges, Mark Hauser remains optimistic about the future of private equity. He believes that the industry will continue to grow in popularity with investors and that there will be plenty of opportunities for skilled investors to generate strong returns. So although there may be some bumps in the road ahead, it seems likely that private equity will remain a key player in the global investment landscape for years to come.
What do you think about Mark Hauser’s predictions for the private equity industry? Do you agree with his assessment of the challenges facing the industry? Thanks for reading!