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Around the globe and across industries, the favorable trends that have propelled private equity for the past several years continued into 2016. PE funds enjoyed strong gains on both current and exited investments, handily outpacing those achieved in the public markets. With readily available, inexpensive debt and abundant dry powder, PE funds were again eager to make deals.
It was, however, a challenge to deploy that money. Global PE deal activity slowed in 2016, stymied by concerns about the viability of the global recovery, slumping oil prices, the bursting of the Chinese stock market bubble, the US presidential election and the UK Brexit vote. Given this uncertain macroeconomic environment, PE firms were challenged by persistently high prices to pencil out the target returns they and their limited partners expected from their investments. Total global deal value fell 14%, and the deal count dropped by 18%.
Source : Bain & Company
