Private equity: Many happy returns
Private equity allocations are rising, writes Pedro van Gaalen
Because of subdued equity performance in 2018, the persistent threat of a global recession and the uncertainty created by US trade wars and Brexit, investors are looking to asset classes that can deliver inflation-beating returns with lower volatility. One asset class that has traditionally delivered robust yields is private equity. Bain & Company’s 2019 Global Private Equity Report supports this stance by highlighting the industry’s success over the past five years. According to the report, there was more money raised, invested and distributed back to investors during this period than at any other time. Every year since 2014 also produced successively higher deal values over the previous cycle, with the exception of the peak in 2006 and 2007. Last year was particularly good for private equity investors. While competition and rising asset prices constrained deal count, reducing individual transactions by 13% to 2,936 worldwide, the report says total buyout value jumped 10% to $582bn...
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