Entry multiples hit record highs

Entry valuations of 10x earnings during 2016 exceeded crisis levels, but leverage and capital invested is still down on previous highs, says Bain & Company. Hugh MacArthur, a partner with Bain and the head of the firm's global private equity practice, said that the consequence of rising prices is that “GPs find it increasingly difficult to pencil out how assets bought at prices today will achieve targeted returns.”

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