How the Trump presidency could impact the PE industry

How the Trump presidency could impact the PE industry

Some large LPs have already started to tweak their investment focus to align with the priorities of the Republican administration.

By Hannah Zhang, CFA

Private equity did not feature heavily during the US election campaign. Yet, near-term uncertainties still loom for PE deal-makers – especially for those in North America.

In the US, a Trump presidency brings a dual reality for dealmakers depending on the sectors they invest in. The most notable divide appears to be between firms focused on renewable energy and those in traditional energy sectors. Investors leaning towards the latter may be more optimistic given Trump’s pledge to unleash an oil boom to reduce gas prices in the US.

Private equity executives in North America had clearly thought the election result would affect their investments one way or another, according to research by Dechert LLP published this week, which surveyed 100 senior executives at PE firms with over $1 billion in assets prior to the election. Just 4 percent of North American respondents said there would be little difference between whether a Republican or Democratic win would...

Read the full commentary piece here.

Eric X Rodríguez

Co-founder & C.O.O. at Blue Sapphire Capital

1 周

?? Grateful for the guidance we’ve received from God and the bright future of manufacturing in the U.S. It’s exciting to see the potential in the manufacturing sector over the coming years, especially with the support for local businesses and a favorable environment for growth. I’m confident that the next four years will be great for our industry and for all of us working to drive its development. What are your thoughts on the future of U.S. manufacturing in this new context? ????

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