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Survey Finds 73% of PE-Backed Companies Are Making New Investments

private-equity-investmentNew York (HedgeCo.Net) – According to the Private Equity Growth Capital Council’s inaugural Private Equity Decision Makers Survey, nearly three fourths (73 percent) of private equity professionals responsible for investment decisions say a majority of their portfolio companies are hiring and making new investments.

For the first time, 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.

 According to the results, 54 percent of decision makers at private equity firms believe the investment environment over the next twelve months will be either very or somewhat favorable while only 20 percent believe it will be unfavorable. When asked about the direction of the national economy, a majority (54 percent) said it is headed in the right direction.

 “These results paint a clear picture of an improving economy in which companies are hiring and investors are putting capital to work,” said Steve Judge, President and CEO of the PEGCC. “Going forward, this survey will provide an exclusive look into the mindsets of some of the world’s brightest financial professionals who are making long-term investments in companies across every industry and operating at the forefront of the U.S. economy.”

Survey respondents were also asked what three factors would lead to economic growth in the U.S. over the next twelve months. An overwhelming majority of decision makers, 59 percent, said increased consumer confidence. Thirty-six percent said cheaper energy prices while 32 percent said corporate tax reform. When asked where the S&P 500 would be at year’s end, private equity decision makers said they believe it will maintain its current level.

The survey also polled the decision makers on which sectors provide the greatest opportunity for private equity investment over the next twelve months. According to the results, 34 percent of respondents said the oil and gas industries are the most promising, followed by 20 percent saying healthcare, 16 percent saying industrials and 15 percent saying technology.

When asked what kind of books are currently sitting on their nightstand, private equity decision makers gave a wide range of responses, from business and finance books like Capital in the 21st Century and Flash Boys, to social science books like Thinking, Fast and Slow.

Alex Akesson
For HedgeCo.net
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