After a flat year in 2012, the private equity industry faces an intensely competitive deal-making environment worldwide, an overhang of aging assets waiting to be sold and challenging fundraising conditions in 2013. But as we discuss in this report, private equity is also poised to capitalize on robust debt markets, a likely resurgence in corporate M&A activity, signs of a recovery in IPOs and the solid support of institutional investors that remain as committed as ever to the asset class.

In North America, continued confidence in the economic recovery, rising equity markets and robust debt markets bode well for PE deal making. Europe continues to wrestle with economic uncertainty, which may continue to drive a wedge between buyers and sellers. The Asian market is adjusting to the reality of slower growth, a transition that could put a damper on deal activity.