Now what for private equity?
How will inflation, rising interest rates and macroeconomic turbulence affect our investment activity?
2021 was a year of records for Credo Partners, and for private equity. After a year of pandemic-driven turbulence that suppressed fundraising and deal activity, private markets rebounded across the board. McKinsey & Company estimates pooled IRR of 27 percent net returns for private equity, and 30 percent for top quartile funds in their 2022 private markets report. These are impressive returns that Credo Partners continue to beat through:
A consistent investment philosophy over time, adjusting fundraising to investments and not investments to fundraising, illustrated by our concentrated fund concept launched in 2021
An oversized team for small cap, enabling powerful execution: 18 add-ons in 2021 alone
Real strategic shifts in our companies, proven by Frisk Gruppen’s exit to Falck Group and Sysco’s merger with Cegal in 2021
But how will a new, crisis-ridden macro environment hit Credo? What are the implications of continued crisis and possible stagflation for our companies going forward, and for our investment focus? We have our view on this, and will be exploring these topics together with founders, investors and CEOs in Credo’s yearly investor day on September 15th, in order to push our thinking even further. Stay tuned.