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In this month's cover story, PE News questions industry leaders on what they expect will be the key industry trends in 2021. Titanbay CEO Thomas Eskebaek shares his predictions on what's in store for 2021.
In the context of this new year, Thomas states that “We expect a continued “flight to quality” with a focus on downside protection for LPs and GPs alike. Even though all firms will gear up their tech teams and competence, the firms that are tech specialists and have resourced this side aggressively will still have the relative edge over firms that look to reposition themselves to be tech-focused now. This trend will make manager selection and access to the best funds ever more critical as investors look to deploy capital in the new normal.”
Looking at the behaviours of LPs, Thomas says that "It is likely that LPs will continue to look to private markets for access to future growth trends, especially in the sectors who have survived the Covid stress-test like technology and healthcare. We expect private equity firms will continue to pay even more for quality in 2021. As a result, the multiple gap that PE firms are prepared to pay between traditional GDP growth +/- 3% type assets (e.g. manufacturers) and secular growth businesses (e.g. software providers) will likely continue to widen further."
