世界经济论坛：私募股权行业的演变：回报、关系和责任_英文版__20页_1mb

The Evolution of the Private Equity Industry: Returns, Relationships and Responsibility

Core Content

This document explores the evolution of the private equity (PE) industry over the past decade, focusing on three key areas: returns, relationships, and responsibility. It is a collaborative effort between the Private Capital Research Institute (PCRI) and the World Economic Forum, aimed at understanding how these changes are reshaping the industry and offering insights for future best practices.

Main Points

1. Returns: Changing Dynamics of Performance

• Performance Trends: Over the past 20 years, private equity has generally outperformed public markets, but the degree of outperformance has decreased over time.
• Benchmarking: The use of public market equivalent (PME) metrics allows for a more accurate comparison between private and public equity performance. The PME ratio indicates whether private equity has outperformed (ratio > 1) or underperformed (ratio < 1) public markets.
• Historical Data: From 2000 to 2018, PE funds consistently outperformed public market benchmarks, with the most significant outperformance in the early 2000s.
• Crisis Performance: During the pandemic, PE managers showed more engagement with portfolio companies, including cost reductions, strategic guidance, and connecting companies with partners. Despite the crisis, over 55% of PE managers continued to seek exit opportunities.
• Unresolved Issues: There are ongoing debates about the impact of liquidity and risk adjustments on performance comparisons. Additionally, the dispersion of returns within the PE industry is significant, with top quartile funds consistently outperforming the public markets.

2. Relationships: Shifting LP-GP Dynamics

• Direct Investing: Limited partners (LPs) are increasingly making direct investments (co-investments and solo investments) alongside or instead of investing in traditional PE funds.
• Growth of Direct Investing: Direct investments have grown significantly, with "shadow capital" increasing by 155% between 2009 and 2015, compared to only 57% for traditional fund investments.
• Challenges for GPs: The rise in direct investments has made it more difficult for GPs to manage co-investment demands, especially from smaller investors like family offices.
• Performance of Direct Investments: The PME for direct investments has been disappointing, particularly since the 1990s. Co-investments are often concentrated in large deals, which historically underperform compared to typical-sized deals.
• Shift in Investment Strategy: LPs are rethinking their investment strategies due to the declining persistence of fund performance and the increasing focus on direct investment.

3. Responsibility: New Paradigm for Value Creation

• ESG Pressures: The increasing focus on environmental, social, and governance (ESG) issues has significantly impacted the private equity industry, mirroring trends in public markets.
• Stakeholder Pressure: LPs, including endowments and public pensions, are under pressure from stakeholders and politicians to adopt more responsible investment practices.
• Impact of GP Outperformance: With GP outperformance no longer guaranteed, LPs are more directly involved in investment decisions, which has intensified the focus on responsibility.
• Broader Implications: The pandemic has further emphasized the need for responsible capital provision, as it has highlighted the importance of long-term value creation and stakeholder engagement.

Key Information

• Performance Comparison: Private equity has shown consistent outperformance over the long term, but the gap has narrowed in recent years.
• PME Metrics: The public market equivalent (PME) is a key tool for benchmarking private equity performance against public markets.
• Direct Investing Growth: The amount of direct investing has surged, with significant implications for the LP-GP relationship and fund performance.
• Liquidity and Risk Adjustments: The lack of liquidity and risk adjustments in performance metrics remains a critical limitation in assessing PE returns.
• Crisis Response: PE managers have been more engaged in portfolio companies during crises, which has helped maintain performance despite economic downturns.
• Persistence Decline: The persistence of fund performance has declined over time, particularly in buyout funds, which contrasts with venture capital where persistence remains strong.
• Regulatory Scrutiny: Increased regulatory attention on co-investment allocation, such as from the US Securities and Exchange Commission, has made the management of co-investments more complex for GPs.

Conclusion

The private equity industry is undergoing significant transformation in terms of performance, relationships, and responsibility. These changes reflect both the natural maturation of the sector and the evolving preferences of LPs. While private equity continues to outperform public markets, the degree of outperformance has decreased, and the dispersion of returns is substantial. The rise of direct investments has altered the LP-GP relationship, introducing new challenges and opportunities. At the same time, the growing emphasis on ESG and sustainability has shifted the paradigm of value creation. The findings suggest that further research is needed to fully understand these trends and their implications for the future of private equity.