Private equity funds will not waste another opportunity to invested attractive multiples of depressed earnings.
Investment performance pre and post previous recession:
- 2006 vintage funds returned median of 8.1%
- 2009 vintage funds returned median of 13.9%
Fund raising efforts in the most recent years have proven to be the best the industry has seen with PE having amassed ~$1.4 trillion of dry powder that is ready to be put to work. This time around there is also a much larger private credit market that wasn’t available during the Great Recession.
Click on the link below for an interesting read.