Nehro Khalil’s Post

The latest Bain & Company Private Equity Midyear Report for 2024 highlights the evolving landscape of the PE industry. Despite a challenging macroeconomic environment, private equity continues to demonstrate resilience, with deal activity shifting towards sectors with strong long-term growth prospects. Notably, technology and healthcare remain key focus areas, driven by innovation and demand for digital transformation. However, the report underscores the need for PE firms to adapt to rising interest rates, increased competition, and evolving regulatory pressures. As we move forward, strategic discipline and operational excellence will be crucial for value creation in this dynamic market. #PrivateEquity #InvestmentStrategy #BainReport2024 #PEInsights https://lnkd.in/eFk3EdPk

Private Equity Global Mid-Year Report Bain & Co's Private Equity Global Mid-Year Report surveyed 1,400 investment professionals to assess subjective opinions about the recovery of the private equity market. The majority, 38% of respondents, forecast an increase in deals and exits in 2025. Trend: The decline of limited partners' (LPs) investments continues and is estimated to align with the 2023 average. The global deal value increased by 18% to $521 billion compared to the same time last year, primarily due to larger deal sizes. Valuations: Deal multiples appear to be easing, with a focus on company performance and business fundamentals. General Partners (GPs): $3.9 trillion in dry powder is awaiting allocation, potentially leading to more conscious decision-making. However, the volume of new funds is estimated to align with the lowest volume in ten years. Exits: 2024 is estimated to remain the second-worst year for exits since 2016. Considering the forecast for the second half of the year, portfolio managers must focus on internal rate of return, stringent value creation plans and execution, and effective portfolio monitoring and governance. For more recommendations on how to maximise value creation, check here: https://lnkd.in/gH5YuRvQ #PrivateEquity #InvestmentTrends #PEMarket #BainReport #GlobalEconomy #DealFlow #InvestmentStrategy #PortfolioManagement #ValueCreation #FinancialForecast #MarketAnalysis #BusinessFundamentals #InvestmentOpportunities #PEExits #DryPowder #InvestmentInsights

*Have you read Bain's 2024 PE Midyear Report?* Headlines: - deals, exits, and funds closed - all down - 70% of managers saying it isn't coming back this year - higher borrowing costs - rates - more pressure from LPs - earlier distributions, etc. *So, what is the 'new normal' for Private Equity?* - elevated borrowing costs - plummeting valuations for portfolio companies - and increasingly stringent investor demands 'less performing teams will be "shaken out and disappear from the market"' - Kurt Björklund, MD at Permira *What can PE firms do to win in this environment* - (I won't comment on the fundraising side) - focus on operational Improvements: given fewer opportunities for outsized returns through financial engineering, focus more on operational improvements to drive value creation in their portfolio companies. This includes investing in talent, technology, and innovation. - pursue more specialized, niche strategies to find attractive investment opportunities: sectors, geographies, or growth challenges where they have a competitive advantage. *What are your thoughts after reading the report?*

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.

Good read from Bain & Company: Searching for Momentum: Private Equity Midyear Report 2024 The industry appears to have finally found its footing. Now comes the hard part. At a Glance: Private equity’s two-year slide in deals, exits, and funds closed slowed in the first half of 2024, but activity remained tentative and momentum scarce. Limited partners, meanwhile, continue to press for an increased pace of distributions and are focusing new commitments on a narrow swath of favored funds. General partners who can’t shepherd portfolio companies to attractive outcomes may face a shakeout. But there are practical ways to get the wheel spinning again. https://lnkd.in/gcv-pEXR

Check out Bain & Company's midyear private equity report. PE's two-year decline in deals, exits, and funds closed has moderated in the first half of 2024. However, activity remains tentative with limited momentum. Limited partners (LPs) are pushing for an increased pace of distributions and focusing new commitments on select funds while general partners (GPs) not driving portfolio companies to attractive outcomes could face challenges. #privateequity #valuecreation (https://lnkd.in/gzHWMbga)

How can a private equity firm truly differentiate itself in this precarious market recovery and get ahead? Aside from being an excellent analysis as usual, Bain & Company's latest PE mid-year report shares some practical advice at the end of this report that's worth your attention. #privateequity #trends2024 #mergersandacsquisitions #valuecreation https://lnkd.in/ehqAfpjB

In 2023, private equity firms controlled $8.2 trillion in assets globally according to McKinsey & Company, a figure that has rapidly expanded since the industry first emerged 40 years ago. As large investors such as pension funds and insurance companies increasingly look to private markets, these alternative asset managers have seen their assets grow by more than twofold in the last five years. Read the full story at https://lnkd.in/ed7Aj4sg #markets #technology #innovation

Top 50 private equity firms worldwide. Private equity firms now control $8.2tn in assets globally, according to McKinsey & Company. This figure has rapidly expanded since the industry first emerged 40 years ago. As large investors increasingly look to private markets, these alternative asset managers have seen their assets grow by more than twofold in the last five years. #privateequity #finance #investing #alternativemarkets