With global markets continuing to tick upward and the current mergers and acquisitions boom well intact, Jynwel Capital maintains a positive outlook on 2015. We believe froth in the European economy and falling oil prices will be counterbalanced by strong growth in key geographies and sectors. Of course, it will be imperative for investors to remain discerning and selective in their pursuits of high-value investment opportunities – even if “animal spirits” set in.
As an international private equity investment and advisory firm, Jynwel Capital focuses on high-value opportunities across the globe in a variety of target sectors. This means we are constantly analyzing and monitoring trends within various industries as part of our business model. Looking ahead to next year, here are three broad trends we see taking shape:
Global Real Estate Investment Continuing to Increase
According to the Urban Land Institute and PwC’s Emerging Trends in Real Estate® 2015, global investment in U.S. real estate hit 13% last year – up from 11% just 3 years prior. Consultancy Knight Frank supports this finding in its own report that indicates Asian property companies continue to make large residential investments in Los Angeles, New York and other hubs. Beyond the U.S., we expect major international cities and urban areas to underpin similar pockets of commercial and residential real estate growth.
Media Companies Remaining Open to Targeted M&A Opportunities
From Twentieth Century Fox’s attempted acquisition of Time Warner to speculation about internet giants pursing content providers, the media sector was the source of many megadeal rumors throughout 2014. We actually see the sector being much more conducive to smaller, more strategic deals over the next year. Per a recent Ernst & Young survey highlighting that 40% of media executives aim to pursue near-term deals, look for companies to explore small-to-midsized transactions that grow core business lines.
Falling Energy Prices Fueling Retail Sector Improvements
If energy prices remain depressed, consumers will retain more discretionary income to pay down debts and go shopping. “On balance, I think it is an overwhelming positive. It is a tremendous transfer of wealth from producers to consumers,” David Joy, chief market strategist at Ameriprise Financial, recently told the Wall Street Journal. We agree with this assessment and hope the stimulus is not confined to North America.
As the calendar turns to 2015, new developments will quickly emerge, and our team remain diligent observers of the global economy’s reaction. Please visit our Jynwel Capital blog in the coming months to for all of these observations as well as timely news.