๐ 30ยฐC and a buzzing crowd in Zurich โ it must be time for our annual tradition at @Private Equity Insights! This week, POLARIS Managing Partner @[Stefan Brรคgger](urn:li:person:tz4DJW2pSM) had the pleasure of moderating the panel "๐๐ ๐๐ซ๐๐๐๐ซ๐๐ง๐๐๐ฌ: ๐๐ง๐ญ๐ข๐๐ข๐ฉ๐๐ญ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐๐ฑ๐ญ ๐๐ข๐ง๐ง๐๐ซ" at PEI Zurich.
A big thank you to our LP panelists โ @[Cyril Demaria](urn:li:person:639bkeYPlU), @[Marie Pestalozzi](urn:li:person:l9MJFaqwHO), @[Marina S.](urn:li:person:NyyT1dD6qQ), and @[Laurent D.](urn:li:person:5ijoF\_\_Ggd). The discussion was candid, timely, and rich with insight. Here are our key takeaways:
๐น๐๐๐ซ๐ค๐๐ญ ๐ญ๐ข๐ฆ๐ข๐ง๐ ๐ข๐ง ๐๐ ๐ซ๐๐ฆ๐๐ข๐ง๐ฌ ๐ ๐ฆ๐ฒ๐ญ๐ก โ consistent deployment across vintage years, not short-term timing, is still the winning strategy, according to our panelists.
๐น๐๐ฎ๐ซ๐จ๐ฉ๐โ๐ฌ ๐ฆ๐จ๐ฆ๐๐ง๐ญ?While the U.S. still dominates many LP portfolios, Europe has delivered stronger realized performance over the past five years. Sentiment is improving, with multiple European GPs recently raising oversubscribed funds.
๐น ๐๐จ๐ฏ๐๐ซ๐ง๐ฆ๐๐ง๐ญ ๐ฌ๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ โ helpful or harmful? Public initiatives like the Tibi program in France aim to drive local innovation, but they can also distort markets and lead to suboptimal outcomes. It's a double-edged sword.
๐น ๐๐ข๐ช๐ฎ๐ข๐๐ข๐ญ๐ฒ ๐ซ๐๐ฆ๐๐ข๐ง๐ฌ ๐ญ๐ข๐ ๐ก๐ญ โunconventional exits and continuation funds are still viewed cautiously by LPs, unless there's clear alignment and value for all stakeholders.
๐น ๐
๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐ง๐ ๐ข๐ง๐๐๐ซ๐ข๐ง๐ ๐ข๐ฌ ๐จ๐ฎ๐ญ; ๐จ๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฏ๐๐ฅ๐ฎ๐ ๐๐ซ๐๐๐ญ๐ข๐จ๐ง ๐ข๐ฌ ๐ข๐ง โour panelists agreed that the winning playbook has changed. With leverage and multiple expansion less available going forward, true value creation must come from growth and transformational strategies.ย
๐น ๐๐จ๐ฉ-๐๐จ๐ฐ๐ง ๐ฌ๐๐๐ญ๐จ๐ซ ๐ญ๐ก๐๐ฆ๐๐ฌ ๐ฆ๐๐ญ๐ญ๐๐ซ โLPs are increasingly focused on adding sector specialists to their \(mature\) portfolios. Energy transition, industrial tech, and healthcare were identified as attractive investment opportunities and potential future winners.ย
๐น ๐๐๐๐ฅ๐ญ๐ก๐๐๐ซ๐ ๐ข๐ฌ ๐ ๐ก๐จ๐ญ๐ฌ๐ฉ๐จ๐ญ โ demographic trends, rising digitization, and inefficiencies offer investment potential, particularly in tech-enabled and value-based care. But high valuations and regulatory complexity require disciplined underwriting.
๐น๐๐ฆ๐๐ฅ๐ฅ ๐๐ง๐ ๐ฆ๐ข๐-๐๐๐ฉ ๐ซ๐๐ฌ๐ข๐ฅ๐ข๐๐ง๐๐ โthese segments have historically outperformed during downturns and offer greater exit flexibility compared to large-cap buyouts.
๐ A huge thanks to the audience who chose our session over two others โ and to our panelists for the thoughtful exchange. And of course, thank you to Private Equity Insights for the kind invitation and for hosting another standout event in Zurich!
{hashtag|\#|PrivateEquity} {hashtag|\#|LPInsights} {hashtag|\#|Zurich} {hashtag|\#|PEI2025} {hashtag|\#|PolarisInvestments} {hashtag|\#|NextWinner} {hashtag|\#|PrivateMarkets}
