Study: Private Equity Decision Makers Bullish on Economy; See Promise in Technology Sector
Survey Finds 75 Percent of Decision Makers Believe the Nation’s Economy is Headed in the Right Direction
Steve Judge: “We are seeing positive indications for a strong 2015. Within both the private equity environment and the broader economy, there is enthusiasm for investment and putting capital to work in the coming year.”
WASHINGTON – According to the Private Equity Growth Capital Council’s latest Private Equity Decision Makers Survey, 75 percent of decision makers responsible for investment decisions at private equity firms think the nation’s economy is headed in the right direction, an improvement of 21 points since June 2014.
Nearly four-in-five (79 percent) of investment decision makers say a majority of their portfolio companies are hiring and making new investments. According to the results, 55 percent of decision makers believe the investment environment over the next twelve months will be either very or somewhat favorable.
“We are seeing positive indications for a strong 2015,” said Steve Judge, President and CEO of the PEGCC. “Within both the private equity environment and the broader economy, there is enthusiasm for investment and putting capital to work in the coming year.”
The survey polled investment decision makers on which sectors of the economy they think will provide the greatest opportunity for private equity investment over the next twelve months. According to the results, 24 percent of respondents said the technology industry is most promising, while 21 percent pointed to oil and gas. This is a shift from the June poll, when oil and gas ranked in first place and technology in fourth place.
Private equity decision makers identified the best opportunities in today’s market as small and mid caps, and when asked to consider a global perspective, they indicated that they are looking to the markets in Asia for new international investing prospects.
For the second time this year, the PEGCC polled private equity professionals who are involved in the decision-making process at their respective firms about their views on the economy and the private equity investment environment. You can view the entire survey by clicking here.
About the Survey
The Private Equity Decision Makers Survey is an online poll that was conducted Oct. 30 – Nov. 21, 2014 on behalf of the Private Equity Growth Capital Council. For the survey, a sample of 117 mid-to senior-level PE professionals who play a role in the day-to-day management of funds, and partake in strategic investment decisions across the United States were interviewed by Research Now, an independent research company.
About Private Equity
The private equity industry in the U.S. comprises nearly 2,800 investment firms. They operate nearly 17,700 U.S.-based businesses in all 50 states and all Congressional districts. These companies employ approximately 7.5 million people. In 2012 alone, U.S. private equity firms invested $347 billion in over 2,000 U.S.-based companies. The private equity industry has distributed over $1 trillion to its limited partner investors over the past three decades. Learn more here.
About the Private Equity Growth Capital Council
The Private Equity Growth Capital Council (PEGCC) is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007 and formerly known as the Private Equity Council, the PEGCC is based in Washington, D.C. The members of the PEGCC consist of the world’s leading private equity and growth capital firms united by their commitment to growing and strengthening the businesses in which they invest. More information about the PEGCC can be found at pegcc.org.
