Global PE market hits $3.2t in 2019
Global private equity (PE) market showed signs of resilience last year despite deteriorating macro conditions, according to the Bain and Company’s 11th annual Global Private Equity Report.
The global PE has its strongest six-year stretch in the industry’s history with $3.2 trillion in disclosed buyout deal value, with buyout firms attracting a record amount of capital and increasing their share to 40% of total private capital.
“Private equity investors had another strong year but they had to work harder than ever for their deals to be successful,” said Hugh MacArthur, global head of Bain and Company’s Private Equity practice.
“Our research highlights a notable development in the US buyout market. For the first time, the returns of public markets and private equity have converged over a 10-year period. This raises questions about how private equity can stand out and remain attractive to investors going forward.”
As far as the technology sector is concerned, the private equity would still be able to find good opportunities in the sector because by nature PE avoid the most ‘hyped tech segments’ and tend to invest instead in enterprise software companies that were more resilient in a downturn.
However, there were increased challenges for general partners (GPs) with capital being poured into the industry, hitting a new record of $2.5 trillion for private capital and $830 billion for buyouts alone.
When it came to impact investing, MacArthur said: “GPs can no longer do without a clear environmental, social and governance (ESG) strategy.
“Impact investing has the potential to be a clear game changer. The question is whether funds can do well by doing good. It is early days, but evidence such as technology and a shift in the consumer mindset is building to support the idea that impact investing will enhance performance, not detract from it.”
AUTHOR
Oksana Patron
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
