Thought leadership

Future Forces 2023: The megatrends shaping the private capital industry

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    The fortunes of private equity (PE) firms and other private capital institutions changed abruptly in mid-2022 when central banks, led by the US Federal Reserve, launched the first in a round of successive interest rate increases. Senior fund partners suddenly faced the end of the low cost deal financing that had fuelled transaction growth for over a decade.

    Technological changes remain strong and will continue to offer attractive growth opportunities to private capital firms. And their role will be instrumental in funding the drive across industries to achieve net zero carbon emissions.

    Some key takeaways

    • Despite a challenging environment, private capital is likely to continue flowing to high tech sectors, including start-ups developing artificial intelligence (AI) and renewable energy solutions.
    • Automation, the Internet of Things (IoT) and cybersecurity figure as the top technologies likely to have the biggest positive impact on the industry.
    • Executives from private capital firms harbour deep concerns about portfolio companies’ ability to secure needed talent and skills. Skills will be the biggest challenge their businesses face in the years to come.

    "The war for talent within the 'new normal' continues to impact the private equity industry. Succession planning has been a concern for many established general partners and finding the people to fill their shoes rightfully remains a top challenge."

    Braeden Donnelly, Partner

    Braeden Donnelly
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    Thought leadership

    Industry perspective: Private Capital

    Learn about the impact of the megatrends on private capital businesses.

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    Thought leadership

    Future Forces 2023 Report

    In collaboration with Economist Impact, our analysis has identified six megatrends - powerful forces believed to have the potential to change the global economy, business and society in the next decade.

    Find out more
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