Over the last four years, financial markets have been subject to a series of shocks that have had far-reaching implications. From the global pandemic and subsequent shutdown of major economies to recent geopolitical tensions, the market environment has been rife with uncertainty. Amidst this turbulence, private equity still managed to deliver impressive absolute and relative performance. Over the period 2019 to 2023, global private equity experienced 16% annualised performance, outperforming the MSCI ACWI gross index by 8%.
Private equity investors increasingly are seeking to make a positive impact within their investments. For the businesses involved however, there is a problem: availability of late-stage funding. In this article, we explore the reasons why.