I am pleased to announce that the 2021 Pepperdine Private Capital Markets Report is now available. It is available at http://privatecap.org/reports.
Since 2009, we have surveyed private capital providers to ascertain their expected returns and other market conditions. Our survey respondent segments include private equity, venture capital, angel investing, senior lenders, mezzanine lenders, limited partners, investment bankers, asset-based lenders, business appraisers, business brokers, equipment leasing and private business owners.
I am pleased to report some of the major findings this year. One of the interesting results from the survey is that the most pressing problems facing private businesses currently are labor availability and the impact of COVID-19. The most troubling emerging issues are inflation and government regulation. Cost of equity is slightly higher this year across nearly all categories. For example, cost of equity for a company with $25MM EBITDA has increased from 22.5% to 25%.
We are very grateful for the generosity of The ESOP Association, Employee Ownership Foundation, and the continuing support of Confluence Capital Group. The 2021 edition of our report would not have been possible without them.
The digital version of the report is free to everyone who completed our annual survey. The price is $100 USD for everyone else.
Thank you,
– Craig R. Everett, PhD