NEW YORK, Aug. 17, 2016 /PRNewswire/ -- CEPRES today released analysis showing how dislocation between macro-economic cycles and buyout performance can lead to increased returns for smart investors. CEPRES analyzed market pricing of Financial Services companies following economic downturns and compared to investment returns of Private Equity investments during the same periods. The analysis showed that buyout investments exhibit increased returns versus the comparative stock markets following economic downturns.
Private Equity Returns are highest following market turmoil
- The chart shows Financial Services buyouts had strong returns in 2009 and 2012 following economic downturns when for the same years' comparative stock markets were weak
- Regulation like Basel III, Solvency II, AIFMD combined now with Brexit creates uncertainty for Financial Services companies with knock-on effect to valuations
- Consequently, quality Financial Services companies can be undervalued creating opportunity for buyout investors
- CEPRES analysis of Financial Services deals proves upside for buyouts versus comparative stock markets following market turmoil
"With all the doom and gloom over Brexit and its impact on world markets, this could be a silver lining for PE investors in Financial Services companies. Smart Fund Managers (GPs) can take advantage of this type of market dislocation to deliver better returns to their investors (LPs)."
Dr. Daniel Schmidt – CEO, CEPRES GmbH
PE.Analyzer is an online investment decision platform delivering the deepest analysis of private markets and track records to the desk of institutional investors (LPs) and fund managers (GPs). For the first time LPs and GPs can perform real Technical & Fundamental analysis to underwrite their decisions and prove their investment strategy.
CEPRES is an innovative FinTech company helping institutional investors invest in Private Equity with the proficiency of Financial Markets. Investors (LPs) and fund managers (GPs) can interact on a single, confidential platform in complete privacy. LPs gain deep market insights, forecast investment outcomes and enhance due diligence to drive better investment returns. GPs can verify their track record, precisely benchmark their deals and find new sources of capital from around the world. 100's of institutional investors have conducted due diligence on $1.7 trillion of Buyout, Growth, Venture, Private Debt, Infrastructure and Real Estate funds via the CEPRES platform. For further information, visit www.cepres.com.