Its International Non-public Fairness Report requires sturdy long-term progress, because of the sector’s sturdy and resilient underlying fundamentals, and reveals the potential for the PE sector to turn out to be much more interesting to traders chafing on the limitations of public markets, regardless of the shifting financial tides.
The business ended final yr with a document $3.7 trillion in dry powder and Rebecca Burack, head of the worldwide Non-public Fairness apply at Bain & Firm, says that the most effective companies will alter to do offers that work even with decrease ranges of exercise.
“Winners will keep near their confirmed candy spots. Important to their success can be underwriting dealmaking the place their experience and confidence are highest,” she mentioned. “We’ve seen from previous intervals of dislocation that traders who observe this technique have generated very sturdy returns – so staying within the sport is vital for all the business’s stakeholders.”
The report reveals that particular person retail traders maintain round half of all international belongings beneath administration, which is estimated to whole $275 trillion to $295 trillion.
However with solely 16% of the capital held by different funding funds, this phase represents an enormous, untapped marketplace for PE managers in search of to maintain double-digit progress because the business matures, the report notes.