Despite the decline in fundraising since 2022, especially for smaller investment companies, the sector has $3.7 trillion globally to invest. photonphoto/stock.adobe.com
Since the second half of 2022 and the rise in interest rates, the global market has been sluggish.
No improvement in sight in the short term for the private equity sector. Difficulties encountered in financing operations and economic uncertainties continue to handicap funds investing in unlisted companies: despite the good resistance of these companies, funds still make few acquisitions and disposals.
After twelve years of unbridled growth, the private equity industry has experienced a “sudden turnaround in the second half of 2022”, highlights a study by Bain & Company. While the start of the year remained buoyant, the rise in interest rates initiated in March by the Fed and in July by the ECB to counter inflation brought a sudden halt to the global market. Cautious, the banks then turned off the tap on credit, which had become more expensive. “They have been reluctant to lend for large leveraged debt financings (leveraged buy-outs, or LBOs)”point…
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