Coming off a record year for exits, a strong year for new fund-raising and a solid year for returns in 2014, the PE industry faces four major forces that will challenge the industry in 2015 and beyond. Superabundant global capital will continue to push asset prices to historic highs. Shadow capital in the hands of big institutional investors is reshaping the relationship between LPs and GPs. The strengthening economy in the US has PE investors refocusing their attention on this intensely competitive market. And a narrowing in the spread of returns that separates the winners from the losers is making it harder for LPs to select winning GPs to invest behind.
For private equity firms that aim to outperform in this demanding new environment, Bain's Global Private Equity Report presents the five building blocks for creating value across their portfolio holdings.