“We are looking for leaders and sectors that have momentum and can create value in an ever-changing environment,” said Nikos Stathopoulos of BC Partners earlier at the Superfund conference, describing the key criteria investors use to approach the market today.
He emphasized that valuations have fallen compared to two years ago. “The price at which we are buying today is lower than it was then, as the EBITDA multiple has fallen by a factor of two to three.” In a period of higher borrowing costs, the decline in valuations serves as a significant risk hedge, he noted. “The logic is to make investments where you believe the chances of capital loss are limited and the prospects for value creation are high,” he emphasized.
According to Mr. Stathopoulos, there has been a shift in international investors’ interest toward Europe. The continent has returned to the center of investment interest, as many investors now consider it more attractive than the United States. Increased political uncertainty and the risks stemming from developments in the U.S. are driving some international capital to seek alternative destinations.
At the same time, the private equity market faces a significant challenge. As the head of BC Partners noted, approximately $4 trillion remains unallocated for investment globally, while the core function of private equity funds is not only to invest but also to successfully divest. According to market estimates, by 2025, approximately 32,000 companies, with a combined value of over $3.5 trillion, will be held in private equity portfolios, awaiting the right moment to be sold.
In this environment, risk pricing takes on even greater importance. And in this discussion, artificial intelligence now plays a leading role. Investors are called upon to assess not only the risks that AI poses to existing business models but also the new opportunities it may offer.
“The real challenge is properly pricing the risk and opportunity that artificial intelligence brings,” noted Nikos Stathopoulos. “With every investment, we examine whether AI could threaten a business or, conversely, enhance productivity, efficiency, and the value a company creates. This is now one of the key criteria through which we evaluate every investment opportunity.”
He added, “Today, we are seeing a significant reassessment of valuations, as the market reevaluates what sustainable profitability truly means in the age of AI.”
He noted that this does not mean technology is no longer an investment opportunity. It does mean, however, that identifying the winners will become much more challenging. “Artificial intelligence creates enormous possibilities, but at the same time it disrupts entire business models. Investors must be extremely careful about the sub-sectors and companies they choose,” he said.
Speaking about energy, he said that the energy transition remains one of the strongest structural trends of the coming decade. “And for Greece, the opportunity is particularly significant. It concerns not only renewable energy sources, but also the entire ecosystem that supports them: data centers, network infrastructure, energy storage, and the automation technologies that make the transition possible.”
However, as he was quick to point out, there are sectors with equally strong long-term prospects, such as healthcare. He linked this to the aging population and the need to contain healthcare costs.
Focusing on Greece, he said that the country has made impressive progress, regained its credibility, and is attracting increasing investment interest. “It remains, however, a small economy. And small economies cannot rely solely on growth; they need companies with size, scale, and international reach,” he said.
That is why, according to Mr. Stathopoulos, “we need champions. Not just national champions, but European ones and, where possible, global ones. Greece has proven that it can create such companies. To achieve this again, however, it needs greater concentration of resources and less market fragmentation.”
He also emphasized: “If we want Greece to transform its current momentum into long-term prosperity, we must create companies that can compete on equal footing in the European and international markets. This is perhaps the most important challenge of the coming decade.”