Kabira Boulakchour’s Post

The global private equity sector is stabilising after a two-year slump but a full recovery is still uncertain. Bain & Company’s 2024 Midyear Report shows deal-making and exits have plateaued but activity remains below historical norms. With $3.9 trillion in available capital, optimism is tempered by challenges like high interest rates and geopolitical turbulence. PE firms must focus on value creation and managing exits to meet investor expectations. #privateequity #markettrends #investmentstrategies

Delving into Bain's Global Private Equity Report 2024 was eye-opening! It underscores the constant need for adaptability and foresight in navigating the complex world of private equity. As someone deeply invested in this field, it's a reminder of the importance of staying agile and informed. Looking forward to leveraging these insights to drive impactful decisions. #PrivateEquity #InvestmentJourney #BainInsights

📊 @Bain & Company’s 2024 Private Equity Midyear Report highlights a potential bottoming out of the two-year slump in global private equity. While activity is stabilizing, momentum remains scarce due to macro-economic uncertainties and high interest rates. Notably, exits have halted their decline, and deal pipelines show "green shoots" of recovery. However, challenges like managing interest rates and enhancing value creation persist. Read more details about the report here: https://lnkd.in/dbEPfauq 📈 #PrivateEquity #BainReport #Investment #Finance #BusinessGrowth #PEIndustry #GlobalEconomy

🔍 𝐃𝐢𝐯𝐢𝐧𝐠 𝐈𝐧𝐭𝐨 𝐭𝐡𝐞 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞: 𝐓𝐡𝐞 2024 𝐆𝐥𝐨𝐛𝐚𝐥 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 & 𝐓𝐡𝐞 𝐑𝐢𝐬𝐞 𝐨𝐟 𝐒𝐞𝐜𝐨𝐧𝐝𝐚𝐫𝐲 𝐅𝐮𝐧𝐝𝐬 The latest "Global Private Equity Report 2024" by Bain & Company sheds light on the current state and future prospects of the private equity (PE) sector. Amidst a challenging landscape, one solution stands out for its growth and potential: secondary funds. Here's what you need to know: 🌍 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐭𝐡𝐞 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐢𝐧 2023: 𝐀 𝐘𝐞𝐚𝐫 𝐨𝐟 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 ▪ Deal value plummeted by 37%, and exit value decreased even more significantly by 44%. ▪ Fund-raising across private capital saw a downturn, with 38% fewer buyout funds closing, despite a surge in dollar commitments to buyouts. ▪ A notable 525-basis-point increase in US central bank rates from March 2022 to July 2023 introduced a pause across the market. 𝐓𝐡𝐞 𝐏𝐫𝐨𝐛𝐥𝐞𝐦: 𝐀 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐂𝐫𝐮𝐧𝐜𝐡 ▪ A staggering $3.2 trillion in unrealized value across 28,000 unsold companies highlights a profound liquidity challenge. ▪ The traditional exit and liquidity avenues have narrowed, necessitating innovative solutions. 𝐓𝐡𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧: 𝐒𝐞𝐜𝐨𝐧𝐝𝐚𝐫𝐲 𝐅𝐮𝐧𝐝𝐬 🚀 Rapid Growth: Secondary funds saw a 92% increase in capital raised in 2023, signaling their vital role in liquidity solutions. 💡 Innovation and Potential: Providing about $120 billion in annual liquidity from a total industry AUM of over $20 trillion, secondary funds represent a growing, albeit currently small, portion of the market with exponential growth potential. 🛠️ Addressing the Liquidity Challenge: With over $3.2 trillion in unrealized value tied up, the growth of secondary funds is propelled by the pressing need for liquidity in the market. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: ▪ Secondary funds are not just surviving; they're thriving, offering a beacon of hope for liquidity in a constrained market. ▪ Their innovative structures and solutions have positioned them as essential tools for managing the current liquidity crunch and shaping the future of private equity. ▪ As the market evolves, secondary funds are poised for exponential growth, making them an area to watch and engage with for investors and industry stakeholders alike. The "Global Private Equity Report 2024" offers a comprehensive analysis and highlights the pivotal role of secondary funds. As we navigate these challenging times, it's clear that innovation and adaptability will drive the future of private equity. You can read the full report here: https://lnkd.in/egKizkJW #PrivateEquity #SecondaryFunds #InvestmentTrends #BainAndCompany #MarketInsights #LiquiditySolutions #FinancialInnovation

Private equity is seeing a shift as the two-year decline appears to be stabilizing, with 2024 deal value expected to reach pre-2021 levels. Despite this positive trend, the industry faces challenges, including over 1.5 times more dry powder than in 2018. Stay informed about the implications for the private equity landscape by exploring Bain's midyear update. Find out more here: https://atbain.co/4f0O6AR.

Private equity is seeing a shift as the two-year decline appears to be stabilizing, with 2024 deal value expected to reach pre-2021 levels. Despite this positive trend, the industry faces challenges, including over 1.5 times more dry powder than in 2018. Stay informed about the implications for the private equity landscape by exploring Bain's midyear update. Find out more here: https://atbain.co/4f0O6AR.

More dire news on the private equity front from me:

🚀 Exciting News in Private Equity! 🚀 🔥 Get ready for a game-changing read! "Private Equity Outlook 2024: The Liquidity Imperative" is here to ignite your strategies for the year ahead! 🌟 📈 Despite facing unprecedented challenges in 2023, the private equity landscape is ripe for transformation! Dive into the insights by Hugh MacArthur, Rebecca Burack, Graham Rose, Christophe De Vusser, Kiki Yang, and Sebastien Lamy, as they unravel the impact of spiking interest rates on dealmaking, exits, and fund-raising. 💼 💡 Discover how industry leaders are navigating the exit conundrum, unleashing innovative liquidity solutions, and paving the way for a resilient future! 💥 In a year where the private equity industry faced the unexpected, this report sheds light on the most pressing problems and provides actionable strategies to thrive in uncertain times. With deal value and count plummeting, and exit channels drying up, it's evident that a new approach is needed to overcome the challenges ahead. But fear not! The article presents a beacon of hope with its analysis of early signs of a turnaround. With potential rate moderation and a record amount of dry powder waiting to be deployed, there's immense opportunity on the horizon. From doubling down on value creation to professionalizing fundraising efforts, this report offers a comprehensive guide for GPs to navigate the turbulent waters of the current market. It's time to take action and steer your firm towards success! 🌐 Explore the full article in Bain’s 2024 Global Private Equity Report now! Don't miss out on the opportunity to stay ahead of the curve in this dynamic environment! 🚀 #PixeletteHoldings #VentureCapital #PrivateEquity #LiquidityImperative #GameChanger https://lnkd.in/eRSVAkpu

So 2024 is not looking great for #PE exit values and higher interest rates are not going anywhere. So the cost of holding assets (backed by variable rate #finance) remains high. Perhaps its not surprising then that the focus is on value creation #strategy over multiple expansion to prepare for exits when the markets improve. Thanks to Bain & Company for the mid-year report. https://lnkd.in/geav4Mec

The private equity industry is constantly evolving, and with record levels of capital and a competitive deal flow, 2024 is shaping up to be no different. Here are the trends you need to know. #PrivateEquity