We interviewed Kees Bruggen and Nasr El Hage Jnr from Ritz Banc to find out their predictions for the private equity market in 2013. Here are a few highlights of the conversation- download the ebook to read the full answers.

Which geographies and sectors will offer potential in 2013?

Kees and Nasr believe that the United States is still the best market to invest globally in 2013, especially in the real estate sector, given the attractive market conditions in terms of undervalued assets, cheap debt and solid rental growth in major US markets. On the other hand, they note that Latin America, and in particular Brazil, has seen steady growth recently.

What are your expectations for private equity fund performance over the next 12 months?

By achieving positive steady cash flow, cheap debt and capital appreciation, they forecast that their real estate private equity funds both core and opportunistic will average around 8 % cash on cash and 15% annualized leveraged return over a 5 year investment hold. They told us, “Most of our Middle East LPs are very bullish in diversifying their portfolios in US real estate in 2013 & 2014”.

Will your private equity allocations increase or decrease in the next year?

Kees and Nasr expect to increase their acquisition volume by 20% in 2013 as they continue take advantage of the favorable investment climate surrounding the US real estate sector. They see a very attractive opportunity to acquire core and value add assets in major US cities like Washington D.C. New York, San Francisco and Boston due to historic low leverage rates.

How are macroeconomic trends set to shape the MENA private equity industry in 2013?

In their view, the Euro zone crisis and the political unrest in the Middle East region are keeping investors on alert in 2013. They suggest that the best strategy to mitigate the macroeconomic risk facing the region in 2013 is “Portfolio Diversification” by increasing allocations to more stable markets.

How is the changing geo-political landscape in the MENA region affecting the regional private equity industry now?

The MENA region has been experiencing a serious of political unrest that directly affects investment decisions. Due to this, Kees and Nasr believe that portfolio diversification will be a vital investment strategy in 2013.