EY survey highlights value of private equity and venture capital

Friday 25 March 2022

Private equity and venture capital firms are more valuable than ever, according to EY’s 2022 Global Private Equity Survey.

The survey, which captured the insights and observations of over 100 private equity COOs, CFOs and financial executives, highlighted the key initiatives businesses need to consider to protect and maximise their value in the market.

One finding is that many private equity firms are moving to adopt more mature business processes, from internal reporting and compliance to fully developed financial planning and analysis functions. 

While larger firms are leading the way, all firms are stepping up their game as they keep pace with the larger players. 

In the latest Monterey Insights Reports, private equity and venture capital accounted for $325.9bn of assets for domiciled and non-domiciled funds in Jersey. In Guernsey, private equity and venture capital funds also remain the most popular product of serviced funds, topping asset allocations with $388.4bn.

Pictured: Increasing amounts of capital are flowing into private equity and fund managers are being advised to invest wisely.

Ove Svejstrup, Associate Partner at EY in Channel Islands, suggested that local fund services would benefit from considering the themes highlighted in the survey in their future strategies. 

“It’s encouraging to see the recent Monterey Insights figures, which highlight private equity and venture capital as the main driver in the Jersey and Guernsey funds markets,” he said.

“As experienced funds jurisdictions, both islands are in a prime position to capitalise on this in an ever-growing market and provide the mature, robust business processes and financial planning that stakeholders require, which the Global Private Equity Survey suggests is a fundamental requirement.” 

The survey also highlighted that two increasingly important initiatives deployed by many private equity and venture capital firms are creating long-term value through a considered talent management plan and incorporating environmental, social and governance (ESG) considerations. 

Mr Svejstrup said: “Implementing and ingraining talent management and ESG considerations into the strategies of local businesses will be vital in ensuring the Channel Islands continues to grow in the private equity space. 

“The figures from the latest Monterey Insights Report highlight both Guernsey’s and Jersey’s ability to continue to attract new assets and the continued growth in private equity funds.

"This, alongside the sustainable finance offerings across the islands, will continue to make Guernsey and Jersey strong jurisdictions of choice for fund managers and investors.”

Pictured (top): Ove Svejstrup.