Industry insiders expect an increase in private equity (PE) activity in 2014 with optimism in both business and PE sectors running high, according to a survey of 100 PE firms and 1,600 corporations by EY and the Economist Intelligence Unit. More positive economic forecasts ( for example a new report from Grant Thornton is reporting stronger economic growth this year – see graphic), plenty of PE funds available for deals; and growth in mergers and acquisitions, which often “stoke” PE activity are the three main drivers of a more bullish outlook for dealmaking in the coming year.
The BRICS countries and emerging markets are expected to attract a good amount of PE money, according to the survey. Other economies that are interesting to those surveyed are Mexico and Colombia, along with Africa which is attracting PE investors to open offices there to physically be on the ground and try and make investments in the Sub Saharan region. (Image Source: Grant Thornton 2014)