Modern Australian
Men's Weekly

.

More Than a Quarter of Private Markets Professionals See Deal-Making Improving in 12 Months or Less

Major new global study by CSC finds uplift in market optimism

  • 76% of global respondents believe market conditions will improve within five years, with the use of SPVs also set to grow
  • Private debt professionals are the most optimistic regarding market conditions
  • Greater deal complexity and a growing burden of regulation are impacting use of SPVs
  • Outsourcing to SPV administrators set to grow, aided by more sophisticated technologies and platforms

HONG KONG SAR - Media OutReach Newswire - 19 June 2024 - New research among 400 C-suite level executives and senior professionals working in private markets commissioned by CSC has found more than a quarter (29%) view conditions for deal making improving in less than one year—or that it's already happening.

In addition, almost half (46%) believe market conditions will improve in the next two to five years, with deal growth resulting in the growth of special purpose vehicles (SPVs).

The study by CSC1, the world's leading provider of global business administration and compliance solutions, was commissioned among investment professionals in private equity, private debt, real estate, and infrastructure in Europe, the U.S. and Asia Pacific. The findings are detailed in a new report focused on the fundamental role that SPVs play in optimizing private market investments.

Respondents based in Asia Pacific are the most cautious, with only 16% believing that market conditions will improve in less than one year, or that it is already happening. This differs from North America and Europe, where 37% and 33% respectively already see improvements or expect improvements in less than one year.

Among key other key findings, the growth of private debt—and the role that SPVs are playing in supporting the growth of this asset class—was particularly notable. Around two thirds (67%) of debt professionals believe market conditions will improve over the next two to five years.

"Our study has found far more optimistic sentiment among senior private markets professionals, following a few years of significant market volatility, which bodes well for the wider investment sector and global economy," notes Thijs van Ingen, global market leader, CSC Corporate and Legal Solutions. "Private debt professionals were much more optimistic than their peers working in different sectors. This supports the trend we are seeing more generally in the market, which sways towards private debt."

The study from CSC comes at a time when private markets have started to recover following significant volatility and headwinds in recent years. Use of SPVs—critical structures at the center of the global investment system—have also grown, but now with managers facing greater complexity through greater multi-jurisdiction regulation, stricter reporting requirements and a need for richer levels of data granularity.

"SPVs have become increasingly complex, and far more work needs to be done to manage them—particularly when you factor in new regulations and requirements," comments Delphine Jones, managing director of CSC Client Solutions. "However, the SPV ecosystem has also become relatively inefficient, with a wealth of unnecessary complexity. It is in this environment that outsourcing to specialist SPV administrators is also growing."

CSC research revealed that most private markets firms that do outsource currently use two outsourcing partners, with a view to increasing this to either three or four partners in the next few years. The top criterion for respondents when looking for the ideal SPV administrator are reputation (66%), technology and reporting data (65%), and having a sophisticated technology platform (64%). Respondents across both real assets and private equity and debt stated that they would most like technology to deliver a centralized portal for a single view of all SPVs (57% and 59% respectively).

"Many cited technology as an important factor when selecting their SPV administrator, marking the importance of technology when it comes to SPV management," says Thijs van Ingen. "This includes optimizing deal sourcing, investment, aiding portfolio performance, and many other areas."

"Regardless of strategy, fund managers are aiming to have a tech-enabled approach and are looking to achieve as close to an all-in-one administrative solution as possible," adds van Ingen. "While it may seem advantageous to use multiple outsourcing partners, having a large number of partners can actually make processes even more complex. Consolidating your SPV administration to one outsourcing partner globally helps to streamline your processes."

1CSC, in partnership with Pure Profile, surveyed 400 (between Dec 2023-Jan 2024) C-suite level executives and similarly senior professionals working in private equity, private debt, real estate, and infrastructure. Respondents were equally split between North America, APAC, and U.K. and Europe.
Hashtag: #CSC

The issuer is solely responsible for the content of this announcement.

About CSC

CSC is the trusted partner of choice for more than 90% of the Fortune 500®, more than 90% of the 100 Best Global Brands (Interbrand®), and more than 70% of the PEI 300. We are the world's leading provider of global business administration and compliance solutions, specialized administration services to alternative asset managers across a range of fund strategies, transactions involving capital markets participants in both public and private markets, domain name system management and digital brand and fraud protection, and corporate tax software solutions. Founded in 1899 and headquartered in Wilmington, Delaware, USA, CSC prides itself on being privately held and professionally managed for more than 125 years. CSC has office locations and capabilities in more than 140 jurisdictions across Europe, the Americas, Asia Pacific, and the Middle East. We are a global company capable of doing business wherever our clients are—and we accomplish that by employing experts in every business we serve. We are the business behind business®. Learn more at cscglobal.com.

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australiaâ...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...