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Laxman Pai, Opalesque Asia:

There are 3,185 global private equity funds in the market as of September 202 targeting $1.2tn in capital, said a study.

According to Preqin Global Report 2023: Private Equity, the last 12 months have been turbulent for risk assets across the board. The global private equity market is in an adjustment period as a result, and activity will likely remain significantly weaker in 2022 and 2023 across the deal flow, performance, and fundraising.

"Despite these challenges, we still forecast strong growth for the global private equity market, with assets under management (AUM) growing at a 10.2% CAGR from 2021 to reach $7.6tn in 2027," Preqin said.

There were 1,360 private equity exits globally in the first nine months of 2022, with a total exit value of $324.3bn. This represents only 45.5% and 40.0% of the 2021 totals, respectively.

"A larger proportion of institutional investors are now fully or overallocated to private equity. The denominator effect has compounded this by causing percentage allocations to increase by default as the share of the total," the report said.

During the first nine months of 2022, private equity funds raised $404.6bn, which represents 58.2% of the total amount raised in 2021 as a whole.

"Our investor survey indicates that the number of investors expecting to allocate more to the asset class over the next 12 months has declined from 43% in the November 2021 survey to 31% in November 2022. Our own forecast......................

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