歐洲投資基金（EIF）：2023年歐洲投資基金私募股權中間市場調查：市場情緒、擴大融資和人力資本

WorkingPaper2023/95

EIFPrivateEquityMid-MarketSurvey2023:

Marketsentiment,scale-upfinancingandhumancapital

Reportleaders:HelmutKraemer-EisandAnnalisaCroce

Disclaimer:

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ThisWorkingPapershouldnotbereferredtoasrepresentingtheviewsoftheEuropeanInvestmentFund(EIF)oroftheEuropeanInvestmentBankGroup(EIBGroup).Anyviewsexpressedherein,includinginterpretation(s)ofregulations,reflectthecurrentviewsoftheauthor(s),whichdonotnecessarilycorrespondtotheviewsofEIForoftheEIBGroup.Viewsexpressedhereinmaydifferfromviewssetoutinotherdocuments,includingsimilarresearchpapers,publishedbyEIForbytheEIBGroup.ContentsofthisWorkingPaper,includingviewsexpressed,arecurrentatthedateofpublicationsetoutabove,andmaychangewithoutnotice.Norepresentationorwarranty,expressorimplied,isorwillbemadeandnoliabilityorresponsibilityisorwillbeacceptedbyEIForbytheEIBGroupinrespectoftheaccuracyorcompletenessoftheinformationcontainedhereinandanysuchliabilityisexpresslydisclaimed.NothinginthisWorkingPaperconstitutesinvestment,legal,ortaxadvice,norshallberelieduponassuchadvice.SpecificprofessionaladviceshouldalwaysbesoughtseparatelybeforetakinganyactionbasedonthisWorkingPaper.Reproduction,publicationandreprintaresubjecttopriorwrittenauthorisation.

Editor:

HelmutKraemer-Eis,

HeadoftheEIF’sResearch&MarketAnalysis,ChiefEconomist

Contact:

EuropeanInvestmentFund

37B,avenueJ.F.Kennedy,L-2968Luxembourg

Tel.:+352248581394

/news_centre/research/index.htm

Luxembourg,December2023

Scanaboveto

obtainaPDF

versionofthis

workingpaper

Authors

HelmutKraemer-Eis

HeadoftheEIF’sResearch&MarketAnalysis,EIFChiefEconomist

Contact:

h.kraemer-eis@

Tel.:+352248581394

AntoniaBotsari

SeniorResearchOfficerintheEIF’sResearch&MarketAnalysisdivision.

Contact:

a.botsari@

Tel.:+352248581546

FrankLang

SeniorManagerintheEIF’sResearch&MarketAnalysisdivision.

Contact:

f.lang@

Tel.:+352248581278

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PolitecnicodiMilano

Prof.Dr.AnnalisaCroce(annalisa.croce@polimi.it)

Prof.Dr.MassimilianoGuerini(massimiliano.guerini@polimi.it)Dr.AndreaOdilleBosio(andreaodille.bosio@polimi.it)

PolitecnicodiTorino

Prof.Dr.ElisaUghetto(elisa.ughetto@polito.it)

UniversityofBologna

Prof.Dr.LauraToschi(laura.toschi@unibo.it)

UniversidadComplutensedeMadrid

Prof.Dr.JoséMartíPellón(jmartipe@ccee.ucm.es)

UniversityofLuxembourg(SnT)

Prof.Dr.ChristianFisch(christian.fisch@uni.lu)

ClarissaHahn

isTraineeintheEIF’sResearch&MarketAnalysisdivision.

Contact:

c.hahn@

Tel.:+352248581603

WewouldliketothanktherespondentstotheEIFsurveys.Withouttheirsupportandvaluablereplies,thisprojectwouldnothavebeenpossible.ThispaperbenefitedfromcommentsandinputsbymanyEIFcolleagues,forwhichweareverygrateful;wewouldliketoexpressparticularthankstoCindyDanielandtheEIFResearch&MarketAnalysiscolleagues.Allerrorsareattributabletotheauthors.

Preface

DearReader,

TheEuropeanprivateequity(PE)ecosystemisundoubtablyfacingachallengingmoment.Fundmanagersandinvesteecompanieshavenavigatedthroughacontinuumofvariousandverydifferentcrises,includingthepandemicanditsrelatedeconomicfallout,theRussianwarofaggressionagainstUkraine,theenergypriceshock,andthecurrentperiodofhighinflationandinterestrates.

EachofthesecriseshasleftadistinctivemarkonthePEmarket,typicallyinitiatingwithasharpdeclineinmarketsentimentandsubsequentlyaffectingmarketactivity.However,thereareindicationsthatthemarket'sresiliencehasstrengthenedcomparedtopreviousdisruptionsinpastdecades,suchasthedotcomcrisisintheearly2000sortheglobalfinancialandeconomiccrisisstartingin2007.Unlikethoseperiods,whenPEfundraisingandinvestmentsexperiencedsubstantialdeclinesandprolongedsubduedperiods,thecrisesofthelastthreeyearshavebeencharacterisedbysmallerandshorterdropsinmarketactivity,immediatelyfollowedbyrobustupswing.

Thepresentmarketenvironment,markedbytighteningmonetaryandfinancialconditions,risinginterestrates,andsubduedeconomicactivity,haspersistedforanextendedduration,contributingtoaweakenedfundraisingandexitenvironment.Portfoliocompaniescontinuetograpplewithsignificantchallenges,particularlyconcerningescalatingcostsofproductionandlabour.However,lookingahead,ournewEIFPrivateEquityMid-MarketSurvey2023revealssomeencouragingsignsofapotentialturnaround.Whilemanyindicatorsforthecurrentsituationhavereachedtheirlowestlevelssincetheinceptionofoursurveyin2020,expectationsforthenext12monthshaveimproved,especiallyregardingfundraisingandexits.

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Oursurveyrespondentshavealsohighlightedseverallonger-termstructuralchallenges,particularlyconcerningtoaccesstohumancapital.Theseareelementsthatdemandattentionfrompolicymakers.

EIF’sResearch&MarketAnalysisendeavourstosupportthisprocessbyenhancingtheavailabilityofinformationforevidence-basedpolicyinterventions,cruciallyneededduringandintheaftermathofcrises.Throughtworegularandanonymousequitysurveys-theEIFPrivateEquityMid-MarketSurveyandtheEIFVCSurvey-theEIF’sResearch&MarketAnalysisteamprovidesuniquemarketinsights,typicallyonanannualbasis.

Thepresentstudyexaminesthecurrentsituation,recentdevelopments,andexpectationsforthefuture.Inthispublication,themainresultsaresummarisedandcomparedovertime.TherespondentsoftheEIFPrivateEquityMid-MarketSurvey,comprisingPEmid-marketfundmanagersinvestinginEurope,havedisclosedcompellinginsights,offeringadistinctivesnapshotofthedevelopmentsandthemarketsentimentin2023.

Iextendmygratitudetoallcontributorsforthisinsightfulparticipationinthisproject.Toenhancereadability,wearepresentingahybridslidedocumentinsteadofthetraditionalWorkingPaperstyle.Ihopeyoufinditenjoyable.

Kindregards,

HelmutKraemer-Eis

EIFChiefEconomistandHead

ofResearch&MarketAnalysis

Tableofcontents

1Esuxmecmuatirvye

Market

sentiment

2

General

Investments

Portfolio

Exits

Challenges

Prospects

3

4

5

Scale-upfinancing

&European

strategicautonomy

Humancapitaland

PEfirmcharacteristics

Concluding

remarks

5

6

Informationabout

thisstudy

7

Annex

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EIFPEMMSurvey

1

Executivesummary

EIFResearch&MarketAnalysis

Surveywave2023

6

28%

Growth

capital

Executive

summary

7

TheEIFPEMMSurvey

Numberofrespondents

199

Topsectors

20%

17%

11%11%

10%

7%

Businessservices

Healthcare

Business

products

ICTConsumerEnergy&

goodsenvironment

Mostimportantstage

66%

Buyout

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

/research

Executivesummary

Exceptionaltimesrequireuniquemarketinsight

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Evidence-basedpolicyinterventiontoaddresschallengesandopportunities

?TheEIFconcentratesonsupportingthenecessaryprivatesectorventurecapital(VC)andPrivateEquity(PE)mid-market(MM)infrastructurestoaddressmarketgapsandchallengesaswellastosupportopportunitieswiththeaimtofurtherenhancetheattractivenessoftheEuropeanVCandPEmid-marketasalternativeassetclasses.

?Inordertoimprovetheavailabilityofinformationforevidence-basedpolicyinterventions,theEIFperforms,onaregularbasis,theEIFPrivateEquityMid-MarketSurveyandtheEIFVCSurvey.Inaddition,theEIFBusinessAngelsSurveywasperformedin2019,2020and2021/22.AnEIFPrivateDebtSurveywasperformedin2021.Allsurveysareconductedonananonymousbasis.

?ThealreadylargeoutreachoftheEIFsurveys,whicharecoordinatedbyEIF’sResearch&MarketAnalysis(RMA),andthehighrelevanceofthequestionnairetopicsforbothmarketparticipantsandpolicymakershavefurtherincreasedthroughacooperationwithInvestEurope,inparticularfortheEIFVCSurvey,from2021onwards.

TheEIFsurveysprovideauniquesourceofinformationandinsight

?TheEIFPrivateEquityMid-MarketSurvey(EIFPEMMSurvey)andtheEIFVCSurveyprovidetheopportunitytoretrieveuniquemarketinsight.Tothebestofourknowledge,thecombinedEIFPEMMSurveyandEIFVCSurveycurrentlyrepresentthelargestregularsurveyexerciseamongGPsinEurope.

?The2023waveoftheEIFPEMMSurveyandtheEIFVCSurveyfocusedonissuesrelatedtomarketsentiment,scale-upfinancing,Europeanstrategicautonomy,andtheroleofhumancapital(particularlyskillsanddiversity)inEuropeanVCandPEmid-market.Welookatthecurrentsituation,developmentsintherecentpast,andexpectationsforthefuture.ThepresentEIFWorkingPaperfocusesonthetopicsofPEMMmarketsentiment,scale-upfinancingandhumancapital.Thefindingsarealsosummarisedandcomparedovertime.Severaladditionalsurvey-basedpublicationsareunderpreparationaswell.

?TheEIFsurveyresultsarepublishedintheEIFWorkingPaperseries:

/research

.

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

/research

Executivesummary

EIFPEMMSurveyresults:Keyhighlights

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MostoftheEIFPEMMSurveymarketsentimentindicatorsdeterioratedfurtherin2023;buttheexpectationsforthenearfuturehaveimproved

?PEMMfundmanagers’perceptionofthecurrentfundraisingenvironmenthasdroppedtoarecord-lowinthetimeseriesofthesurveyresults,asgloomyperceptionsweresharedbyalmost7in10respondents.Inaddition,twooutofthefivebiggestchallengesinthePEMMbusinessin2023arerelatedtofundraising.

?Whilefundmanagersstillreported,onbalance,ahighernumberofnewinvestments,thepacehassloweddownconsiderably.Thevastmajorityofrespondentsreportednofurtherincreaseincompetitionamonginvestorsandadecreaseintransactionprices.Inlinewiththis,theimportanceofhighinvesteecompanyvaluationsasakeychallengeforfundmanagers’PEMMbusinesshasfurtherdeclined.

?Portfoliocompaniesdeveloped,onbalance,inlinewithexpectations,andmostrespondentsexpecttheirportfoliodevelopmenttoimproveinthenearfuture.Althoughrespondentsanticipatemoreinsolvenciesthaninthepreviousyear,accesstoexternalfinanceofportfoliocompaniesisstillconsideredaverageorevenbetterbyamajorityofrespondents.

?Similartopreviousyears,costsofproductionandlabouristhebiggestchallengeforPEMMportfoliocompanies,followedbyrecruitingskilledprofessionalsandgeopoliticaluncertainty.

?Theexitenvironmenthasworsenedsignificantly,accordingtoalargemajorityofrespondents.TheoverallexitenvironmenthasalsobecomemoreimportantamongthekeychallengesforthePEMMbusiness.Thekeychallengeregardingtheexitenvironmentisgeneraldifficultiesinfindingpotentialbuyers.Regardingexitroutes,therelativeimportanceoftradesalesdecreasedin2023,whiletheoccurrenceofinsolvenciesincreasedstrongly.

?WhilemanymarketsentimentindicatorsoftheEIFPEMMSurveythatcoverthecurrentsituationdeterioratedfurthercomparedto2022,expectationsforthenext12monthshaveimprovedformostofthereportedcategories.

?Inthesamevein,theconfidenceinthelong-termgrowthprospectsofthePEMMindustryintherespondents’respectivemarketsimprovedin2023.

?PoliciestoattractinsurancecompaniesandprivatepensionfundsarethemostfrequentlysuggestedmeasurestosupportthedevelopmentofthePEmid-marketindustry.

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

/research

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EIFPEMMSurvey

2Marketsentiment

EIFResearch&MarketAnalysis

Surveywave2023

10

Marketsentiment-General

Stateofbusiness

Currentsituation

PercentageofrespondentsPercentageofrespondents

100%

80%

60%

40%

20%

0%

83%

86%

72%

70%

66%

60%

84%

74%

74%

70%

87%

67%

27%

22%

4%

24%

27%

4%

12%

15%

6%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

NetbalanceNetbalance

2020Feb2020Mar2020Oct202120222023

Bad/VerybadAverageGood/VerygoodNetbalance

Expectationsforthenext12months

100%

80%

60%

40%

20%

0%

27%

54%

50%

42%

60%

80%

20%

-7%

-15%

42%

77%

39%

32%

55%

35%

33%

29%

47%

12%

13%

34%

18%

11%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

2020Feb2020Mar2020Oct202120222023

Slightly/StronglydeteriorateStaythesameSlightly/StronglyimproveNetbalance

11

Respondents’perceptionoftheir

stateofbusinesshasremainedpositive;

andthesituationisexpectedtoimprovefurther.

?PEMMfundmanagers’perceptionoftheirstateofbusinesshasremainedlargelyunchangedin2023comparedto2022.

?Theoverallperceptionremainspositive.Onlyasmallfractionofrespondents,4%,viewthecurrentsituationnegatively.

Q:“Howwouldyouassessthecurrentstateofyourbusiness?”

?Theoutlookissimilarlypositiveandonly12%oftherespondentsexpectthestateofbusinesstodeteriorateinthenext12months.

?Thisrepresentsamarkedlymorepositiveoutlookcomparedto2022.The“netbalance”increasedby49percentagepoints(upto42%from

-7%in2022).(Seethe

relatedpage

ofthesection“Informationaboutthisstudy”foranexplanationoftheterm“netbalance”.)

?Ultimately,expectationshaverecoveredfromtherecordlowin2022andarecomparabletopre-COVID-19levels.

Q:“Overthenext12months,howdoyouexpectthestateofyourbusinesstodevelop?”

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

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NetbalanceNetbalance

Marketsentiment–General

Fundraisingenvironment

Currentsituation

PercentageofrespondentsPercentageofrespondents

100%

80%

60%

40%

20%

0%

3%

21%

26%

58%

29%

50%

44%

45%

14%

40%

-8%

59%

44%

-13%

24%

68%

28%

34%

32%

-65%

31%

9%

34%

14%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

2020Feb2020Mar2020Oct202120222023

Bad/VerybadAverageGood/VerygoodNetbalance

Expectationsforthenext12months

100%

80%

60%

40%

20%

0%

6%

17%

11%

36%

37%

38%

27%

29%

30%

17%

55%

-11%

16%

67%

60%

44%

54%

44%

-50%

-60%

20%

20%

28%

8%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

2020Feb2020Mar2020Oct202120222023

12

Theperceptionofthefundraisingenvironmenthasreached

anall-timelow,butexpectationshaverecovered.

?Thepessimisticmarketperceptionseenin2022hasdeterioratedevenfurtherin2023,reachinganall-timelowinthetime-seriesoftheEIFPEMMSurveyresults.

?Thenetbalanceof-65%showsahighlevelofpessimismregardingthefundraisingenvironment.

?Only3%offundmanagersexpressapositiveperceptionofthecurrentfundraisingenvironment.

Q:“HowwouldyouratethecurrentfundraisingenvironmentforPEmid-marketfunds?”

?However,respondents’expectationsforthefundraisingenvironmentinthenextyearhavereboundedandthenetbalanceofresponsesisonceagainpositive(upto17%from-50%in2022).

?Theshareofoptimisticrespondentsrosefromlastyear’slowof11%to37%.

Q:“Overthenext12months,howdoyouexpectthefundraisingenvironmentforPEmid-marketfundstodevelop?”

Slightly/StronglydeteriorateStaythesameSlightly/StronglyimproveNetbalance

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

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NetbalanceNetbalance

Marketsentiment-General

Easinessinfindingco-investors

Currentsituation

PercentageofrespondentsPercentageofrespondents

100%

80%

60%

40%

20%

0%

26%

34%

47%

48%

47%

52%

38%

30%

20%

23%22%

63%

7%

34%

28%

19%

28%

25%

22%

18%

20%

25%

15%

14%

10%

14%

29%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

2020Feb2020Mar2020Oct202120222023

Verydifficult/difficultIdidn'tlookAverageVeryeasy/easyNetbalance

Expectationsforthenext12months

100%

80%

60%

40%

20%

0%

7%

11%

15%

24%

21%

31%

37%

55%

28%

16%

55%

13%

57%

13%

15%

53%

-17%

66%

-27%

13%

38%

16%

24%

13%

14%

8%

13%

8%

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

2020Feb2020Mar2020Oct202120222023

13

Findingco-investorshasbecomemoredifficultin2023.

However,theoutlookismorepositive.

?Findingco-investorshasbecomemoredifficultcomparedtopreviousyears.

?Theshareofrespondentswhostatedthatitiseasytofindco-investorsdroppedtoarecord-lowofonly26%.

Q:“Overthelast12months,howeasy/difficultwasittofindco-investorstosyndicate?

Note:The“Average”responseoptionwasonlyprovidedsincethe2021surveywave.

?Expectationsaboutfutureeasinessinfindingco-investorshaveimprovedfrom2022.

?Theshareofrespondentsthatexpectfindingco-investorstobecomeeasierhasincreased,leadingtoastrongimprovementinthenetbalanceofresponses(from-17%to+16%).

Q:“Overthenext12months,howdoyouexpectfindingco-investorstobecome?”

Much/SlightlymoredifficultIdon'tintendtolookStaythesame

Much/SlightlyeasierNetbalance

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

/research

Constraintontimingduetotransactiondynamics

Divergentinvestmentapproach

Lackofcommitment/resourcestofindacounterpart

Divergentinvestmentgoals

Trustbetweenparts

Negotiation-relatedcomplexity

Lackofincentivesandadvantages

Asymmetryofinformationontheinvestment

Competenceofthecounterparty

Lackofnetworkcontactsandleads

Regulatoryhurdles

Co-investmentrelatedcosts

38%

Marketsentiment-General14

Themostimportantbarriersinfindingco-investorstosyndicate

21%

21%

18%

13%

13%

10%

10%

8%

8%

5%

5%

0%10%20%30%40%

Percentageofrespondents

Constraintsontimingduetotransactiondynamics

isthemostfrequentlycitedbarrier

infindingco-investors

?Bycontrast,costs,regulatoryhurdles,andalackofnetworkcontactsandleadsarenotconsideredasimportant.

?Respondentsalsoreferredtootherbarrierssuchasheightenedriskaversion,reducedcapitalavailabilityduetomacroeconomicandgeopoliticaluncertainties,andapreferenceforestablishedrelationshipsorsecondarymarketinvestments.

?Relevantpolicymeasurestosupportco-investmentsshouldfocusonregulatorysimplification,taxincentives,andfiscalsupportforportfoliocompanies,coupledwiththepromotionofsector-basedco-investmentfundsandeasieraccesstoprivateequitydeals.

Q:“Whatarethemostimportantbarriersinfindingco-investorstosyndicate?”

Note:Thequestionwasaskedonlytothoserespondentswhoperceivedfindingco-investorsoverthelast12months(seeprecedingquestion)tobe(very)difficult.Inaddition,thegraphdoesnotincludetheresponseoption“Other/s”.

Q:“Inyouropinion,whatarethemostrelevantpolicymeasurestosupportco-investments?”(free-textquestion)

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

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PercentageofrespondentsPercentageofrespondents

Marketsentiment-Investments

15

Numberofinvestmentproposalsreceived

Currentsituation

100%

80%

60%

40%

20%

0%

35%

42%

57%

66%

44%

26%

48%

57%

42%

57%

20%

21%

-8%

36%

38%

27%

34%

43%

26%

18%

9%

15%

9%

22%

2020Feb2020Mar2020Oct202120222023

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

Netbalance

Slightly/StronglydecreasedStayedthesameSlightly/StronglyincreasedNetbalance

Expectationsforthenext12months

100%

80%

60%

40%

20%

0%

67%

65%

50%

50%

34%

47%

44%

38%

24%

70%

72%

8%

39%

30%

39%

44%

23%

11%

27%

7%3%6%

21%27%

2020Feb2020Mar2020Oct202120222023

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

Netbalance

Slightly/StronglydecreaseStaythesameSlightly/StronglyincreaseNetbalance

Thenumberofinvestmentproposalsreceived

decreasedslightly,butisexpectedtoincreaseagain.

?ThepercentageofPEMMfundmanagersreportinganincreaseinthenumberofinvestmentproposalsreceivedwassimilartothatof2022.

?Bycontrast,theshareofrespondentsreportingadecreaseinthenumberofincominginvestmentproposalsincreasedslightlyto22%.

?Nonetheless,thepositivenetbalanceof20%suggeststhat,onbalance,thenumberofinvestmentproposalsincreased,butatacontinuouslyslowerpaceoverthecourseofthelastcoupleofyears.

Q:“Overthelast12months,howhasthenumberofPEmid-marketinvestmentproposalstoyourfirmdeveloped?”

?Goingforward,halfofrespondentsanticipateanincreaseinthenumberofinvestmentproposalsoverthenext12months.

?Atthesametime,theshareofrespondentsexpectingadecreaseinthenumberofproposalsdecreasedsignificantlyto6%(thesecondlowestinthetime-seriesofthesurveyresults).

?Asaresult,innetbalanceterms,expectationsaremuchmoreoptimisticthanin2022.

Q:“Overthenext12months,howdoyouexpectthenumberofPEmid-marketinvestmentproposalstoyourfirmtodevelop?”

EIFPEMMSurvey2023:Marketsentiment,scale-upfinancingandhumancapital.EIFWorkingPaper2023/95,EIF'sResearch&MarketAnalysis,availableat

/research

Marketsentiment-Investments

Numberofnewinvestments

Currentsituation

Percentageofrespondents

100%

80%

60%

40%

20%

0%

50%

51%

63%

51%

38%

38%

39%

37%

36%

19%

68%

11%

35%

44%

34%

37%

36%

27%

12%15%27%13%18%

5%

2020Feb2020Mar2020Oct202120222023

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

Netbalance

Strongly/SlightlydecreasedStayedthesameStrongly/SlightlyincreasedNetbalance

Expectationsforthenext12months

Percentageofrespondents

100%

80%

60%

40%

20%

0%

80%

70%

53%

43%

56%

64%

48%

27%

24%

59%

76%

82%

38%

32%

35%

27%

20%

19%

8%

6%

15%

18%

6%

2020Feb2020Mar2020Oct202120222023

100%

80%

60%

40%

20%

0%

-20%-40%-60%-80%

-100%

Netbalance

Strongly/SlightlydecreaseStaythesameStrongly/SlightlyincreaseNetbalance

16

Investmentactivitysloweddownfurtherin2023,

butisexpectedtopickupagaininthecomingmonths.

?Investmentactivitycontinuestofollowadownwardtrend,astheshareofrespondentsreportinganincreaseinthenumberoftheirnewinvestmentsfallsforthesecondconsecutiveyear.

?Whilethisyear,thelargestpercentageofrespondents(44%)reportedaninvestmentactivitysimilartothatof2022,theshareoffundmanagersreportingadecreaseintheirinvestmentactivityhas,atthesametime,increasedto18%,secondonlytotheonerecordedduringtheCOVID-19crisis.

Q:“Overthelast12months,howhasthenumberofyournewPEmid-marketinvestmentsdeveloped?”

?Respondents’expectationsrecoveredfromlastyear’sdrop,asthemajorityofPEMMfundmanagersanticipateanincreaseininvestmentactivityoverthenextyear.

?Innetbalanceterms,expectationshavealmostreturnedtopre-COVIDlevels.

Q:“Overthenext12months,howdoyouexpectthenumberofyournewPEmid-marketinvest