Bain uses cookies to improve functionality and performance of this site. More information can be found in our Privacy Policy. By continuing to browse this site, you consent to the use of cookies.

Snap Chart

Private Equity’s High-Multiple Challenge

With buyout prices soaring, putting money to work hasn’t been easy.

  • March 08, 2019

Snap Chart

Private Equity’s High-Multiple Challenge

While private equity has been generating record deal value over the past five years, the industry hasn’t been able to keep pace with investor demand, resulting in a growing mountain of global dry powder. One reason: Heavy competition for assets and a flood of capital—both debt and equity—have driven price multiples to historic highs, making it hard to find attractive targets. Funds are definitely finding ways to put money to work, but high prices present a persistent challenge.

Bain partner Hugh MacArthur is a director in the firm’s Boston office and head of Bain’s Global Private Equity practice.

Related Report

Public Vs. Private Assets: The Big Switch

The pendulum has swung in favor of private—will it swing back?

Tags

Want to continue the conversation?

We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results.