In a complex environment marked by macroeconomic fluctuations, many private capital firms are returning to fundamentals, focusing on risk management and value creation to adapt to shifting investor expectations and a changing deal flow.
Despite a sense of measured optimism regarding the potential for increased deal flow later in the year, senior leaders are taking a cautious approach to investment, focusing on operational excellence and strategic value creation. As firms adapt to changing dynamics, they are also prioritizing enhanced exit planning and geographical diversification, with Europe becoming a focal point for many PE firms.
At the same time, consolidation among various stakeholders, including banks and insurers, is reshaping the industry and providing new avenues for risk management and investment opportunities.
Against this more challenging landscape, marked by significant uncertainty, these firms are working to improve their insurance strategies, so they are relevant and responsive to today’s risks.
In this episode of Risk in Context, Emily Almond, Global Chief Client Officer within Marsh’s Private Equity and M&A Practice, speaks with John Romeo, Global Head of Oliver Wyman’s Private Capital Business, and Tamsin Coleman, Private Debt Specialist within Mercer Investments. They discuss some of the top risks that private equity firms should be aware of and share strategies for addressing them effectively. They also recap key takeaways from the recent SuperReturn International conference, where industry leaders discussed a number of today’s most pressing challenges and actions they are taking to remain resilient.
