These were the challenges discussed by our founding partner, Sergio García Huertas, in the panel “Deals in Demanding Mode,” held as part of the first Deal Insights Forum, organized by Capital & Corporate and SS&C Intralinks. Moderated by Valvanera Lecha (LLYC), the session also brought together Daniel Lorrain, CFA, CPA (Hyperion Fund), Iván Feito (Axon Partners Group), and Jorge López Moreno (Charme Capital Partners) to discuss how the private equity market is evolving against a backdrop of higher capital costs, growing investor selectivity, lengthening holding periods, geopolitical tensions, and the rise of artificial intelligence in investment processes.
The discussion centered on four major trends reshaping the sector’s activity.
The first is the quality filter. Liquidity remains abundant, but it is increasingly concentrated in top-tier assets, those with solid business models, resilience, visibility, and sustainable growth potential. In this environment, process preparation has become a critical factor: a good narrative is no longer enough; the strength of the business plan must be rigorously demonstrated.
The second is the challenge of holding periods, which are at historic highs and driving greater use of tools such as secondary markets and continuation funds to generate liquidity.
The third is the impact of geopolitics, which can reshape business plans within a matter of weeks. In certain strategic sectors it can act as a tailwind, but it demands strict investment discipline to guard against FOMO. And finally, the new digital paradigm and the “AI filter.” Investment committees must assess, case by case, whether artificial intelligence represents a genuine growth lever or a real insourcing risk for particular business models.
In his remarks, Sergio García noted that private equity has moved past the era in which multiple expansion and low-cost debt accounted for much of value creation. “The growth now required to achieve the same returns is in the double digits. Growing 4% or 5% is no longer enough,” he said.
At Qualitas Funds, we remain committed to rigorously analyzing the major trends transforming private markets and to contributing to the debate on the industry’s future. Congratulations to Capital & Corporate and SS&C Intralinks for launching this new meeting point for industry professionals.