Private Equity firms have witnessed record fund raising figures in recent years, as allocations towards private markets has continued at pace. A slow down in deal activity has not stopped 'mega-funds' from launching new vehicles this year. ‘According to the latest midyear private equity report by Bain Consulting, investors earn superior internal rates of return in years following recessions. For example, following the bursting of the dot-com bubble, buyout funds generated a median IRR of 25 percent in 2001, 40 percent in 2002, and 47 percent in 2003. In 2009, after the Global Financial Crisis, they posted a 24 percent IRR’
Private Equity deal activities were down in the first half of 2022, as global inflation and interest rate rises were being fought with. A backdrop of volatile public markets, which are showing no signs of halting anytime soon, Private Equity firms will broadly be cautious. It will be critical for PE firms to whether the storm, to take full of advantage of the recovery to follow…
According to the latest midyear private equity report by Bain Consulting, investors earn superior internal rates of return in years following recessions. For example, following the bursting of the dot-com bubble, buyout funds generated a median IRR of 25 percent in 2001, 40 percent in 2002, and 47 percent in 2003. In 2009, after the Global Financial Crisis, they posted a 24 percent IRR. In general, PE investments during recovery years have “consistently outperformed the long-term averages, especially investments in top-quartile deals,” according to the report.
