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Laxman Pai, Opalesque Asia:

The US$1.17tn worth of global private equity (PE) industry deals recorded between January and September 2021 has already eclipsed every prior full-year total stretching back to 2015, said a study.

According to a survey by Dechert LLP, annual PE deal value looks set to more than double year-on-year. The previous record of US$846.8bn, set in 2007 immediately before the financial crisis put an end to the credit boom of that period, is already shattered.

"The global PE industry is scorching hot. Pent-up demand for deals was unleashed in H2 2020 following a brief hiatus as the COVID-19 pandemic sent economies all over the world into lockdown. As we head towards 2022, there is little sign of this momentum letting up," said the survey conducted by Mergermarket, on behalf of Dechert.

It doesn't matter on what front the industry's success is measured; the numbers speak for themselves. There were 4,605 buyouts globally in Q1-Q3 2021, already beating the annual record for global PE volume.

Recent activity has also seen the return of mega-club deals. One such example in June saw PE giants Blackstone, The Carlyle Group and Hellman & Friedman join forces to acquire Medline.

Several factors are driving this robust activity. Historic levels of monetary and fiscal stimulus have been deployed to reflate economies and mitigate the disruptive impacts of the pandemic, sending public equity and private capital market prices soaring in the process.......................

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