Improving fundraising conditions, high valuations, growth for ESG and TMT

Acuity Knowledge Partners (Acuity), a leading provider of bespoke research, analytics, staffing and technology solutions to the financial services sector, today released findings from its global Private Equity (PE) and Venture Capital (VC) survey

Respondents representing over 80 firms spanning North America, Europe and Asia, reported on their outlooks, concerns and business plans for 2022. Three-quarters of these respondents have senior roles at their firms, with 87% having over five years of experience in the industry and over half relying on a decade or more of industry knowledge to prepare their responses.

Firms overwhelmingly agreed that competition for funds has increased in recent months, but that fundraising conditions should improve in 2022. Respondents indicated that, amid the positive fundraising environment, funds available to deploy are likely to increase, with more than half of respondents expecting levels of dry powder to remain high for some time.

“To cope with increasing competition PE and VC firms have had to adapt their business models,” said Robert King, CEO of Acuity. “Our unique market survey notes that PE and VC firms remain optimistic both about fundraising and the deployment of those funds while also acknowledging that innovation is required in this increasingly competitive sphere. We also note that firms wish to maintain flexible operations and cost structures and that the trend of PE and VC firms using outsourcing as part of their operational strategy continues.”