Mark Hauser is a co-managing partner at the Hauser Private Equity. In this blog, Mark Hauser highlights key trends for 2022 and discusses some of the challenges that private equity firms will face in the coming years.
Mr. Hauser believes that the world will experience a phase of technology-driven innovation in the next few years. He argues that this phase of innovation will be driven by exponential improvements in artificial intelligence and machine learning combined with other technologies like virtual and augmented reality, block chain and 3D printing. These innovations will have a big effect on private equity firms as they try to reduce costs, increase revenues and make their operations leaner and faster.
Higher Number of Newer Fund Managers
Mr. Hauser believes that the number of new fund managers will increase as private equity firms will be more open to younger people who have fresh ideas and are willing to work extremely hard. He also argues that private equity firms will start taking on partners from different industries as they look for innovative solutions for their investment problems.
More Regulatory and Standardization Emphases
Mr. Hauser points out that there has been more regulatory enforcement and more standardization of regulation in the past few years. He argues that this trend will continue into the next few years as regulators try to keep a closer watch on private equity firms.
Increased Interest in Technology Funds
According to Mr. Mark Hauser, there is a growing interest in technology funds as investors see the huge potential in this sector. He argues that private equity firms will be looking to invest in these funds as they provide an alternative investment structure to the traditional buyouts.
More Emphasis on ESG Investments
According to Mr. Hauser, there will be an increase in the focus on ESG investments as regulators try to make sure that these investments are made in a socially responsible manner. He believes this trend will continue and drive more firms to focus on ESG investments.
Reduced SPAC Utilizations
Mr. Mark Hauser believes that there will be an increase in the utilization of SPACs by private equity firms in the coming years as they will look to take advantage of their flexibility and low overhead. He argues that these firms can also be utilized to support other private equity firms when they are looking to move into new countries.