Grasping the opportunities

The major trends in private equity are once again clear this year. Our holdings continue to grow in size and are becoming increasingly diversified in terms of strategies, sectors and geographies.

They prefer to invest within the “megatrends” including digitalisation, sustainability, automation, health care, new energy sources and data security. As before, they grasp the opportunity to invest more in periods of market turbulence, which usually entail interesting investment opportunities.

Investing in companies that are delivering growth and earnings but are not overly dependent on the business cycle is a general theme in these times, which aligns very well with the private equity firms’ investment philosophy. As we know, the current negative market sentiment has pushed equity valuations down and our holdings have also bought back own shares.

Our holdings have financing with long fixed terms and we argue that how well they succeed at increasing sales and profits will determine value growth in the future. In earlier periods of market turbulence, the holdings have managed to deliver good return and we believe the potential to do so again remains. In the meanwhile, it will be exciting to watch the future value growth of the investments being made at the current attractive price levels.