Gary McGaghey- Private Equities Industry Leader
Strange but Positive Growth
2021 is, so far, a year of strange and exciting events. Changes in the social, political, and financial circles occur at a breakneck pace. In the financial sector, private equity firms experience a positive uptick in business. Low-interest rates and record fundraising allow these firms to make riskier investments.
Experts like Gary McGaghey, Group CFO at William Lea Tag, know these investments revolve around value creation strategies that consider the environment, society, and government. Also, he and other experts are aware of one odd fact: that some of the higher-risk investments can be utilized in longer-term sustainability.
As a driver of value creation, Gary knows that it and two other keys would have to remain in place for that level of investment to continue. First, there is value creation itself. Different from traditional means, this method allows private equity firms to use large amounts of unused capital to take greater risks when investing.
Second, is the greater focus on environmental, societal, and governmental factors. Issues in diversity, leadership, climate change and others create a need for policies that address the financial matters related to them. Many firms are formalizing procedures to take care of them.
Finally, McGaghey and other experts agree that special purpose acquisition companies need to be watched closely. While they can be lucrative sources of capital, regulatory scrutiny has made them harder to manage. The key is knowing when to utilize these versus more traditional forms of fundraising.
Lead in Observation
Leaders like Gary McGaghey know that they must take care to continually observe the changes in the market. Legalities and confidence regularly redefine risk strategies. He knows it takes a keen eye to know when to make the right move.