Auxadi’s, chief executive officer, Victor Salamanca, spoke with Private Equity International (PEI), following the launch of our latest private equity investment report, to understand where the biggest opportunities for cross-border deals lie and when cross-border dealmaking will return to normality.
The article shares findings from our report ‘Recovery to Rediscovery: Capitalizing on a Changed Private Equity Landscape’ and highlights the most favorable markets for private equity investment following the global pandemic and how managers are preparing for growth as economies rebound.
With Europe being the largest single market in the world and having a proven track record in private equity investment it’s no surprise that 92% of our survey respondents chose Europe as the most attractive region, said Victor. We’re also seeing increased interest from North America based GPs looking to invest in Latin America, driven by its proximity to the region, cultural links and the growing talent coming out of its fintech and financial services sectors, he added.
The article outlines the sectors that GPs see the most interest in for investment in the coming five years with energy, industrials and IT all rankly highly, especially renewable energy companies.
Our report also gave an insight into timelines that GPs are expecting to face with regards to full normalization of cross-border dealmaking, with many expecting private equity activity to be back to normal by the end of this year or by the end of 2022.
Victor also addresses that whilst there are increased opportunities on the horizon for private equity cross-border transaction, GPs are still facing, and will continue to face, challenges that must be overcome. These obstacles range from differing compliance regimes, cultural differences, lack of transparency and differing law and regulatory frameworks.
You can read Victor’s full article on Private Equity International, here.
Local Knowledge – International Coverage
Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.