N. Stathopoulos: There are 4 trillion available. dollars in private equity

By Giorgos Lampiris

The difficulty that appears for new investments due to the geopolitical environment during the period we are going through, in combination with the uncertainty that this event entails and also the high inflation, BC Partners partner, Nikos Stathopoulos, spoke from the podium of the Economist conference . However, he also emphasized the fact that despite the difficulties that the investment community is facing today, there are more than 4 trillion dollars in the private equity sector, which are uninvested. He pointed out, however, that there is caution from investors, until he clarifies the new landscape emerging in the market.

“There is no doubt that even if there is no recession, there will be a slowdown in growth. Sectors that have more exposure to the consumer will have a bigger impact and we are cautious about investing in them at the moment,” Mr. Stathopoulos said, among other things. .

“Now the geopolitical situation is something that concerns us”

“We invest in mature markets like Europe, the US, North America where geopolitics has been a rare factor to consider until now. Now, we have to take that into account as well. We have to look at the risks that businesses face, the geopolitical risk as geopolitical tensions can affect the supply chain. At the same time there is a labor shortage and wage costs are higher and by extension the cost pressure is higher for each company. Therefore the geopolitical crisis is more important today for us, in terms of the prospects it has for the growth and profitability of businesses”, added Nikos Stathopoulos.

“Sectors dependent on consumption will be severely impacted”

He added that based on the conviction of every investor, the crisis is a good time for opportunities. Especially in an industry like private equity, which he says is very liquid right now and with a lot of capital to leverage. However, he noted that finding opportunities will soon become more difficult, but there will still be opportunities in different sectors. He gave the example of energy, where as he mentioned it is a good example that by definition one can find enough opportunities to invest or on the contrary there can be problems in the specific sector. “Sectors that depend on consumer spending will see a severe impact because it has been a driver for many economies. In the US, 2/3 of consumption comes from domestic consumption. They are seeing less of an impact than other countries but they too are facing the impact of the current period”.

Referring to Greece, he said that our country has restored its credibility and reputation, and this is something that has been happening for the last 2-3 years, which can be seen from the foreign direct investments that are coming to the country. “Greece has some characteristics that have always made it an attractive destination. It is a European economy without currency risk, while geopolitically it is in a very good place. There is also a human capital, the quality of which is excellent, which makes it attractive destination. Greece came out of a ten-year recession, which means that growth was stunted during that period, but that will be restored. What needs to happen is for reforms to continue.”

“What matters is how the government governs”

Regarding the possibility of holding elections in the near future, he proposed the fact that the most important thing is how the government governs and how it shapes the balance. “I am concerned if stability is overturned through the elections. The uncertainty that could be created in such a case could affect someone’s appetite to invest and practically this also affects foreign direct investment, which Greece needs”.