It has surely been another remarkable year for North American private equity. And as always, SuperReturn does what is does best to capture the hottest trends and market drivers in his year’s edition of SuperReturn US East conference, taking place this summer in Boston.
"The entire world is here to observe, learn and draw examples"
The US private equity market has been developing at an attractively steady rate. However, there have been a few rather prominent trends, that have and will continue to contribute to a likely change of pace. The entire world is here to observe, learn and draw examples of how private equity practitioners react to these developments and adjust to their inevitable outcomes. So let’s take a closer look what is considered to be an undeniably the biggest market shift this year.
New administration, and how it’s shaping the economic policy and, consequently, the private equity landscape
It is common for the initial post-election hype to eventually subside, allowing people to get on with their affairs. But with President Trump, it doesn’t seem like it’s going to be “business as usual” any time soon. Some of the key concerns for private equity in this new era of politics are an expected correction to the U.S. financial regulatory framework, changes in carried interest tax, interest deductibility, and corporate tax rates. In regards to Trump’s tax reform, many believe it could very well lead to higher bills for private equity firms and their managers. Others, however, expect the impact would likely be mitigated by a lower corporate tax rate that Trump has promised, making the final outcome of the reform a rather positive one. There is a lot of debate whether Trump’s taxation policy is private equity’s friend or foe. Alongside the anticipated future tax changes, other developments that could complicate matters for private equity investors are changes to the trade agreements, potentially creating a risk of global trade wars, currency shifts, and deteriorating diplomatic relations – all of which have been causing a great deal of concern for private equity investment groups. In the meantime, we can only hope that, fundamentally, the new proposed economic policies will have the country’s best interests in mind, and end up beneficial for US private equity companies and overall business growth.
Learn more about what Trump’s administration has in store for private equity by attending some highly relevant sessions at the upcoming SuperReturn US East 2017 Conference:
CFO/COO Summit – 12 June “Regulations, legislation and SEC”
Secondaries Summit – 12 June “Mega impact of macro trends: The effect of macro-economic trends on the global secondary market”
Main Conference, Day 1 – 13 June “Our future with President Trump: a game of give and take”
Main Conference, Day 1 – 13 June “Macro-economic perspective: Are we entering a lower return environment? What does it mean for alternative strategies? Growing valuations – is a correction inevitable?”
Main Conference, Day 1 – 13 June “State on the union”
Main Conference, Day 2 – 14 June “Global Risk and Geopolitical Strategy: The 2020 Agenda”
Main Conference, Day 2 – 14 June “Get on top of regulations: Regulations, carried Interest, taxation and recent SEC enforcement cases”
Main Conference, Day 2 – 14 June “Lunch & learn: An outlook for the world economy and the future of US investments under Trump presidency”
Main Conference, Day 3 – 15 June “How will the new administration impact Healthcare investments?”