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Bain’s Four Major Challenges for PE in 2015

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April 2, 2015

Remember that “wall of refinancing” of leveraged loans that once looked insurmountable? Well it’s gone, according to Bain in its latest information rich Global Private Equity Report. Bain says that global buyout activity is quite stable the last four years. While 2014 was a tremendous year for exits and fundraising in 2014, the PE industry some challenges ahead if it is to keep up the pace, according to Bain. The four most important are 1) Dealing with asset price creep – superabundant global capital drives higher prices; 2) An unmeasured amount of capital in the warchests of big institutional investors is reshaping the relationship between LPs and GPs. 3) The strengthening economy in the US has many more PE investors than ever looking for deals making it intensely competitive. 4) The narrowing in the spread of returns between winners and losers is making it harder for LPs to select winning GPs to invest behind. (Image source: Bain)

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