Bildnachweis: 0100 Conferences.
The adaptation and implementation of new rigorous disclosure rules on Environmental, Social, and Governance (ESG); as well as challenges in the fundraising landscape, the growing importance of family offices, and the disruption of new technology in areas like artificial intelligence and machine learning, will take on investors‘ agenda at the upcoming “0100 Conference Mediterranean 2023”, a pan-European event for the private equity and venture capital industry, that will be held in Rome from October 18th-20th.
„In an ever-evolving world, investors require a platform for exchanging ideas and staying
informed about industry trends and challenges to maintain a competitive edge. The core mission of Zero One Hundred Conferences is to facilitate this exchange and promote networking among Limited Partners (LPs), Venture Capitalists (VCs), and Private Equity (PE) firms. It provides them with opportunities to fulfill various objectives, whether it’s fundraising, enhancing brand visibility, connecting with fellow investors, or gaining insights from industry leaders,” said Pavol Fuchs, CEO of Zero One Hundred Conferences.
Laurence Renondin, Director of Investments at EVEN Family Office, and one of the conference’s speakers identified four key challenges that will dominate investors‘ agendas in the short term: valuations, portfolio management (completing deals and exits), fundraising, and ESG integration. “The PE/VC industry needs to evolve, driven by technological advancements, changing investor expectations, and different economic environments. To achieve this, the industry will adopt a proactive approach, that prioritizes ESG considerations, and stay flexible. Building strong relationships with LPs, attracting, and retaining top talent, and effectively managing risks are also critical elements to address the current challenges”.
“Financial returns are no longer enough. Incorporating ESG as well as measuring and reporting the impact companies are having on the environment or society has become more important. The asset class is also more accessible to smaller private investors. Therefore, for all these initiatives to work, digitalization, transparency, and regulation will play an even more important role going forward”, added Ricardo Miró-Quesada, Partner and Head of Private Equity at Arcano Capital, who will also be speaking at the Conference.
In a similar vein, Natasha Franks, Investor Relations, Head of Client Reporting at Alpha Associates, underscored the prioritization of ESG adaptation over the next year, as LPs and GPs now face obligations to collect and share specific data concerning their ESG capabilities. She noted, “Although this is certainly a positive shift towards transparency in the industry, it also comes with a considerable reporting burden, particularly for smaller players”.
Regarding fundraising, the landscape is especially challenging for smaller managers since multi-billion-dollar mega-funds are taking larger pieces of the pie. “In order to combat the limited amount of institutional LP capital, managers are seeking to cast a wider net by launching Evergreen vehicles, open-ended funds that target high net worth retail investors”, Natasha Franks explained.
“The Private Equity industry needs more exits”
According to Managing Director of Eurazeo, Francesco Orsi, one major challenge for PE investors is the reduced number of exits, especially in these last four quarters. “Buyout funds are sitting on 2.8$trillion in un-exited assets. GPs must sustain DPI and rotation of their portfolios. Good assets are still trading at healthy multiples, while the bid/ask gap is still quite important for lower-quality assets. The question is: when this gap will be reduced? I do not know, but I know that GPs are also sitting on record amounts of dry powder to be deployed. In the meanwhile, the Debt market shows signs of recovery, and this should help”, he concluded.
The first edition of 0100 Conference Mediterranean will gather over +300 senior private equity/venture capital executives, fund managers, and industry experts. Hear firsthand from the most influential voices from across Europe will take place on October 19th at Salone delle Fontane in Rome, Italy. More information here.
