IPEM | Event: Cannes 2023

Lincoln International was pleased to attend IPEM Cannes 2023 from January 23 to 25. The event provided attendees the opportunity to connect with other professionals in the private capital markets, learn from expert speakers and discuss the state of the economy, its challenges and opportunities.

Based on our conversations with general partners (GPs) and limited partners (LPs), Lincoln has gathered several key takeaways, outlined below.

• Environmental, social and governance (ESG) remains top of mind for GPs and LPs. ESG is no longer an objective, but a necessity.
• There is cautious optimism for the economic environment overall, given the current volatile state of the market. Further development of the inflation rate and its impact on the interest base rates will be key.
• Financing markets remain strong with lenders being cautious but open for business.
• Many participants expect the first quarter of 2023 to be calm, with transaction activity picking up in Q2.
• Business-to-business companies in the software sector are positioned to perform well, although many are facing some margin pressure caused by salary and other cost increases. Interest from investors in the technology, media and telecom sector remains strong with increased scrutiny on valuations.
• GPs are further diversifying their portfolios, adjusting their investment strategies to focus on more than one sector or product driven by LP demand.