Simon Cope-Thompson, Managing Director at Arrowpoint Advisory, was asked by unquote to consider industry developments over the last 12 months and assess the outlook for 2017.
- Deals still got done despite Brexit jitters, but processes have taken on a new layer of complexity
- UK fund managers managed to raise successfully despite the referendum vote
- Record distributions and high levels of fundraising alongside fewer buy-side opportunities are maintaining an imbalance in the market
- Polarisation continued when it comes to pricing, with the opportunity to clinch lower profile assets for reasonable valuations
- US investors remain a prime source of capital for European GPs
- High volatility and uncertainty will call for creativity in 2017, particularly when it comes to growing existing investments
On key expectations for 2017, Cope-Thompson commented: “Volatility and how buyers and investors react to what will be a more volatile environment will be a key theme. I do think there's a degree of responsibility for advisers, investors and funders to make sure they invest wisely, rather than in a crazy fashion. But I believe people will invest all the way through the cycle and where they continue to back great businesses with great management teams there will always be an opportunity to make really good returns.”