Technology to the fore
So, with high levels of uncertainty, where should the PE sector go next?
Bill Ford, CEO of General Atlantic, said his organisation was focusing on growth equity. The aim is to identify companies and markets that can grow at 20-25% or greater, in two key areas.
“About half of our investing activity is in the technology sector,” Ford explained. “And even our other three sectors - financial services, healthcare and consumer - are really informed by what's happening in technology.”
The second focus is on emerging markets, where two-thirds of global growth is expected to come from, as Ford highlighted.
“One interesting fact is that just our four, five largest EMs - China, India, Indonesia, Mexico, Brazil - represent 1.8 billion of the 4.4 billion global Internet users. So, it's already a digital economy and I think will create significant opportunities going forward.”