Global private equity sees early recovery after sharp decline - Bain

Global private equity (PE) is beginning to see signs of recovery, with “green shoots” for future prospects despite experiencing its steepest decline since the 2008-09 financial crisis, according to Bain & Company’s 15th Annual Global Private Equity Report. Last year, rapid interest rate hikes led to significant declines in dealmaking and exits, with buyout investment values plummeting 37% to USD438bn and deal counts and exits values also seeing substantial drops. However, the latest Bain analysis suggests a cautious uptick in activity, driven by potential limited rate cuts by the US Federal Reserve and PE funds holding a record USD1.2tr in uncommitted funds. Challenges remain, especially in exiting investments, but the industry is moving to overcome them by boosting portfolio company value and managing assets more aggressively.