What Worries Private Equity Funds?

When asked what most gets in the way of closing more deals, private equity firms cite the same challenges they have faced for years: high transaction multiples, too few attractive targets and heavy competition. General partners are awash in capital and clearly hungry to do more deals. But when they find attractive assets, they consistently en­counter aggressive corporate buyers and other funds willing to push up auction prices. More than ever before, the winning firms are building the kinds of insights and confidence that allow them to go big (or go home) in auction situations.

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

Read the Bain Report

Private Equity: Still Booming, but Is the Cycle Near Its End?

Deal count declines, but value jumps to a five-year record.