Here, our experts share their insights for the trends and drivers that will shape 2023.
Peter Hughes, Founder & CEO, Apex Group
“In 2022 we continued to evolve and push boundaries - increasing the depth of our offering and local market knowledge on a global scale - but perhaps more importantly, we took responsibility along the way; announcing our lifetime offset of carbon emissions, launching our Women’s Accelerator Program, investing in digital innovation and evolving our ESG offering - all underpinned by service levels that deliver a great experience to our clients.
2023 marks Apex Group’s 20th year in business – which will be focussed on reinforcing our strong brand and culture with a focus on purpose. We are more than just a financial services provider, we want to leave a legacy we can all be proud of through driving positive change for our people, our industry and society.
The challenging macroeconomic conditions offer an inflexion point for all business leaders and we must embrace uncertainty and seek out the opportunities for innovation to support clients and employees in market dislocation. Businesses, including the private markets, need to do more in 2023 and take further accountability when it comes to climate change. It is not enough to talk about ESG as a fashionable topic, we need to see businesses having a genuine impact.
Our 20th year is our ‘time to shine’ – turmoil in the global markets may continue, but we see this as a unique opportunity for Apex Group’s continued growth and strong performance to standout against the backdrop of a global recession.”
“Notably, GPs are honing in on specialist areas to differentiate themselves from other managers including, sector focus, geographic specialism and deal specialism. Healthcare and tech focused funds have continued to be popular areas of focus in 2022 and will continue to do so in 2023.
We have seen an increase in continuation funds and activity in the secondaries market and I would expect this to continue into 2023. With valuations starting to plateau, managers are using continuation vehicles as a means of holding onto assets for a longer period of time without the pressure to exit. An extension of this theme has been the increased prevalence of Evergreen Funds with managers looking at options outside of the traditional limited life, closed-ended fund structure. Evergreen Funds have no fixed life, allowing managers to hold investments for longer periods of time, but also providing investors with some liquidity in the form of an allocation of liquid assets in the portfolio.
Private Equity clients will continue to participate in the growing trend of opening up access to private markets for retail investors, as they seek new sources of capital. This trend is expected to continue further in 2023, driving greater demand for transparency and information from investors. To support this, private markets are turning to the digitization of fund processes including onboarding, transaction capturing and data reporting. The ability to deploy technology solutions and remove the friction of traditional manual processes will be a key differentiator in the year ahead.”