This edition of our newsletter provides an overview of the private equity deal-flow in 2019 and examines various developments influencing the outlook for the PE market. It also features an interview with Roland Berger's investor support experts Christof Huth and Thorsten Groth.

With 253 completed transactions DACH region deal-making marked a new all-time high in 2019. Overall, growth was supported by record-low interest rates, substantial dry powder, and a growing number of PE players active in the region. The upward trend indicates the growing relevance of private equity for the DACH region though further potential exists when compared to more mature PE markets such as the UK, France, or the Nordics (in terms of the PE share relative to GDP).

When it comes to industries with high deal activity, 2019 saw the Industrial Products and IT/Telecommunication sectors topping the chart, while the Automotive and Financial Services sectors experienced a slow-down. Looking ahead, one of the industries with a strong non-cyclical opportunity likely to be favored by PE investors is the healthcare sector — in particular healthcare providers with consolidation potential, or niches like medical devices and healthcare tech.

Despite the general confidence of the market, PE professionals remain cautious and aware of external challenges. The first issue relates to the ongoing trade talks between the U.S. and China. Worries about an escalation in tensions remain as the recently signed initial agreement seems to be a pause rather than a full solution to the dispute. The second challenge is Brexit and it remains to be seen how exactly the negotiations over a new relationship between the UK and the European Union unfold and what the impact on various industries will be. The third issue is the concern around the economic impact of the recent coronavirus outbreak in China.