Marc Kitten, Partner at Candesic, had the pleasure to be back at PE Insights in Munich last Friday, to discuss the best sectors for Private Equity in the current investment environment, with Alexander Friedrich from Ardian, Giovanna Maag from Altor Equity Partners, Marinus Schmitt from Ufenau Capital Partners AG and Matthias Reicherter from Golding Capital Partners.
Some key takeaways included:
→ A common preference for non-cyclical, long term growth sectors (business services was the day’s winner, even ahead of healthcare)
→ The need for alignment with the objectives of the fund, including ESG
→ Alignment also with the differentiated capabilities of the investor
→ A shift towards sector specialisation, but the largest funds cannot afford to limit much their sector reach
→ The recognition that there are jewels in the most unattractive sectors
Finally, Matthias reminded us all that the perspective of the fund-of-funds is very different, with diversification playing an essential role.
© Candesic 2023