1、2023 BDO Private Capital SurveyOrganic Value Creation Takes Center Stage for Private Equity Amid Economic HeadwindsKey TakeawaysThe No.1 capital deployment strategy:applying equity relief to portfolio companies79%of fund managers and operating partners say asset prices will rise in the next 6 months

2、(April-September 2023)More than 80%of fund managers and operating partners have turned down at least one deal due to ESG concernsNearly half of CFOs and fund managers say they are understaffed,especially in critical leadership and finance rolesRisk exposure concerns top challenges to closing deals22

3、023 BDO PRIVATE CAPITAL SURVEYFaced with a challenging economy,private equity plans to turn its attention inward to current portfolio companies,echoing a pattern observed at the height of the pandemic when fund managers deprioritized dealmaking in favor of shoring up their portfolios.Asked where the

4、y planned to direct the most capital in the next six months,fund managers and operating partners identified“applying equity relief to portfolio companies”as their number one priority,according to our new 2023 BDO Private Capital Survey.New deals fell to fifth place,followed by add-on acquisitions.Co

5、mpared to the fourth quarter of 2021 and first quarter of 2022 when deal flow reached record levels,the state of private equity today looks very different as deals slowed down.The economic conditions that powered the private equity dealmaking machine reversed themselves over the second half of last

6、year as rising interest rates increased the cost of capital,persistent inflation skewed asset prices and increased wages and sagging public equity markets closed the IPO window.These economic headwinds have led to several consecutive quarters of lower private equity deal volume,with the first quarte