Various indicators paint the private equity sector as vibrant and robust compared to other asset classes, but fund managers face a growing number of challenges to keep realising market-beating returns. Amid persistent global macroeconomic uncertainty, there is also a high probability fund managers will soon have to navigate an economic downturn. Industry-specific structural challenges cited by global private equity fund managers also include high deal multiples, rising competition, excess capital and a lack of attractive deployment options. Bain & Company’s 2019 Global Private Equity Report shows uncalled capital hit a record high of $2-trillion globally in December 2018 across all fund types, while the average multiple for leveraged buyouts in the US and Europe has hovered around 11 times ebitda in recent years. While similar dynamics are at play in the local market, SA private equity funds aren’t always sitting on large capital piles. The Southern African Private Equity & Venture ...

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