Last year saw the return of the consumer sector. An improvement in economic confidence in the US and Europe, moves by China toward a consumption-led economy, and the continued rise of the middle class in other emerging markets creating investment opportunity all led to the consumer sector attracting more PE attention globally.
In Asia-Pacific, the energy, mining and minerals sector has been knocked off the top spot for attracting PE investor interest over 2014; it had held this position for two years. Nearly three-quarters of Asia-Pacific PE market participants expect the consumer sector to be the most popular area for PE investment, versus just 53% citing energy, mining and minerals.
Technology was the other big story in 2013 (the Dell deal is excluded from the results and the chart below, given its size). Low interest rates, wide availability of credit and opportunities in the financial technology, cloud, big data, and software and services spaces (including companies weakened by disruptive technologies) were among the key drivers fueling activity. Moreover, the opportunity for roll-ups in the tech space is growing, as corporations become more active acquirers.
Meanwhile, health care took more of a back seat, in part because of uncertainties in the US around the Affordable Health Care Act.
Courtesy of EY