Key takeaways

 
Despite broader market headwinds, opportunities remain in private equity and venture capital markets.

01

Fundraising timelines stretch

More investment firms are going after the same pool of capital from limited partners (LPs). With more than 2,500 private equity funds in market globally as of January 2022, the battle for LPs’ time and capital could become more competitive.

02

Foreign currency hedging is on the rise

Increasing access to international companies and heightened market volatility has investors paying closer attention to foreign exchange rates—leading to a jump in hedging activity to protect their investments and returns.

03

Exits are expected to temper after a record year

Despite a softening IPO market, M&A remains steady and there is plenty of dry powder ready to be put to work. While the slowing exit environment may damper distributions, after a record 2021, last year’s distributions are likely to flow back into the PE and VC ecosystem.