Survey dates: 5/20 – 6/5 Interviews: 119 PE Industry Decision Makers
Private Equity Decision Makers Survey June, 2014 Below are findings of an online poll conducted May 20th – June 5th, 2014 on behalf of the Private Equity Growth Capital Council. For the survey, a sample of 119 mid-‐ to senior-‐level PE professionals who play a role in the day-‐to-‐day management of funds, and partake in strategic investment decisions across the United States were interviewed by Research Now, an independent research company. The precision of online polls is measured using a credibility interval. For all respondents, the credibility interval is ±9.2 percentage points with 95% credibility. Notes: - Totals may not add up to 100% due to rounding. - An asterisk (*) indicates a percentage value of greater than zero but less than 0.5. (Q1.) Do you think the nation’s economy is generally headed in the right direction or is off on the wrong track? % Right direction
54
Wrong track
46
(Q2.) What is your outlook on the U.S. investment environment over the next 12 months? % Very favorable
3
Somewhat favorable
51
Neither favorable nor unfavorable
27
Somewhat unfavorable
20
Very unfavorable
0
Categories
Favorable
54
Unfavorable
20
1
(Q3.) In your view, which sector provides the greatest investment opportunities in the U.S. over the next 12 months? Ranked % Oil & Gas
34
Health care
20
Industrials
16
Technology
15
Consumer Goods
5
Consumer Services
3
Financials (e.g. banks, insurance)
2
Telecommunications
0
Utilities
0
Other (SPECIFY)
4
(Q4.) Would you say that the majority of your portfolio companies are…?
%
Hiring and making new investments
73
Delaying/putting off hiring and new investments
22
In a cost cutting mode
3
Don’t know
2
(Q5.) Where will the S&P be in six months?
%
1500 to less than 1700
11
1700 to less than 1800
17
1800 to less than 1900
24
1900 to less than 2000
32
2000 or greater
17
2
(Q6.) Over the past five years, the U.S. economy has grown at a rate below its long-‐run average of about 3%. In your view what are the top two reasons why U.S. economic growth has not been more robust? Ranked % Too many regulatory measures
42
Suppressed consumer demand
33
Political gridlock (DC in-‐fighting)
26
Less competitive tax code
25
High unemployment
20
Failed government stimulus
15
Depressed housing market
11
International competition
8
Obama / Liberal policies
3
Aging/ineffective workforce
3
Too few regulatory measures
1
Other (SPECIFY)
7
Responses may add up to more than 100% due to multiple responses.
3
(Q7.) What are the three factors that will drive faster economic growth in the U.S. over the next twelve months? Ranked % Increased consumer confidence
59
Cheaper energy prices
36
Corporate tax reform
32
Lower unemployment rate overall
28
Low interest rates
23
Rising home prices
20
Lower income taxes
18
Re-‐shoring of manufacturing jobs
17
Implementation of New Technology
16
Increase in entrepreneurialism
15
Change in political leadership / political attitudes
6
Increased in skilled labor
5
Less market volatility
3
Other (SPECIFY)
6
Responses may add up to more than 100% due to multiple responses. (Q8.) When do you expect the U.S. unemployment rate will return to about 5%, where it was before the recession hit in 2008? % Within the next 12 months
0
Next one or two years
14
Next two or three years
28
Next three or five years
33
Next six to 10 years
12
Longer than 10 years
3
Never
9
4
(Q9.) What question/concern do you hear most often from your LPs?
%
Opportunities / Potential Growth
21
Internal Issues
19
Valuations / Prices
16
Environment / Government Involvement
16
Investment / Returns
9
IPO Window / Liquidity
6
Performance
2
Other
3
Non – responsive
9
(Q10.) What book is on your nightstand? (N=101)
%
Business / Finance / Economics
22
Social Science / Self-‐help
20
Autobiography / Biography
19
History
10
Sports
5
Science
4
Literary fiction
4
Religion
4
Politics
3
Historical fiction
3
Other
6
5
