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Laxman Pai, Opalesque Asia: Global private equity's recent challenges in fundraising, deal-making and exits don't dim the long-term outlook for the asset class, said a study.
According to Bain & Company's 14th annual Global Private Equity Report, global PE remains well positioned for further long-term growth as central banks sharply raised interest rates in response to rising inflation.
"As deal activity begins to pick up in 2023, the industry continues to be well positioned for long-term growth," said the report.
"So far this year there has been a continuing slow-down in the action, but private equity's long-term appeal to investors is secure," said Hugh MacArthur, chairman of the global Private Equity practice at Bain & Company. "Despite the drop-off in deal, exit, and fund-raising activity, 2022 was still the second-best year in history. There is undeniable uncertainty in the global market - but this is something private equity has dealt with and persevered through before."
The report noted that after posting a record high in 2021 of $1 trillion in completed deals, that figure plunged about 35% to $654 billion in 2022. The overall deal count fell by 10% with some 2,318 transactions completed last year.
While 2022's deal value was still the second-best performance for the market historically, this was chiefly driven by the extraordinary momentum from the year's first half. The second half's sharp drop-...................... To view our full article Click here
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