Jakarta Post

Optimism replaces years of frustration

Optimism returns to the private equity industry.

By Hugh MacArthur, Graham Elton, Bill Halloran and Suvir Varma

Published on May 05, 2014
min read


This article originally appeared in The Jakarta Post. After four frustrating years of false starts, nervous capital markets and deal-dampening volatility, the private equity (PE) industry has taken a sharp turn from uncertainty and worry to enthusiasm about the past year and optimism for the future. A year of calmer macroeconomic conditions set the stage for PE’s revival in 2013 and laid a foundation for further expansion in the year ahead. As we describe in this year’s edition of Bain & Company’s Global Private Equity Report, PE investors profited from strong public equity markets and enjoyed the persistent low interest rates and accommodating debt markets the central bankers helped engineer. Exit channels opened up. New initial public offering (IPO) issuance, follow-on offerings and dividend recapitalizations were robust, enabling general partners (GPs) to increase distributions to limited partners (LPs) as they cashed out a long pipeline of past investments. As new money flowed back into their coffers, LPs were able to refresh their PE commitments, breathing life into GP fund-raising campaigns. With many of the once-troubled deals from the mid-decade boom years profitably sold and the valuations of unsold assets still in GP portfolios climbing, PE returns rebounded. Read the full article at The Jakarta Post.

This article originally appeared in The Jakarta Post.

After four frustrating years of false starts, nervous capital markets and deal-dampening volatility, the private equity (PE) industry has taken a sharp turn from uncertainty and worry to enthusiasm about the past year and optimism for the future.

A year of calmer macroeconomic conditions set the stage for PE’s revival in 2013 and laid a foundation for further expansion in the year ahead. As we describe in this year’s edition of Bain & Company’s Global Private Equity Report, PE investors profited from strong public equity markets and enjoyed the persistent low interest rates and accommodating debt markets the central bankers helped engineer.

Exit channels opened up. New initial public offering (IPO) issuance, follow-on offerings and dividend recapitalizations were robust, enabling general partners (GPs) to increase distributions to limited partners (LPs) as they cashed out a long pipeline of past investments.

As new money flowed back into their coffers, LPs were able to refresh their PE commitments, breathing life into GP fund-raising campaigns. With many of the once-troubled deals from the mid-decade boom years profitably sold and the valuations of unsold assets still in GP portfolios climbing, PE returns rebounded.

Read the full article at The Jakarta Post.