Geopolitical storm brewing
17.07.2024 – Articles
A new report from Boston Consulting Group finds PE firms are increasingly exposed to geopolitical risks and predicts growing pressures on trading and supply chains.
Analysis of the largest 20 private equity firms and their portfolio companies has found that, on average, 20% of their portfolio companies are exposed to three geopolitical and trade risk factors.
According to Boston Consulting Group (BCG), which conducted the analysis, the top three risk factors are:
Cross-border value chains, where 20% of active European portfolio companies and 10% of US investee companies have significant exposure to geographic risk zones
Strategic sectors, which exposes 12% of both European and US portfolio companies to national industrial policy in areas such as semiconductors, renewable energy and aerospace.