Even in late innings, US buyout cycle proves unexpectedly strong
April 13, 2017
After a subdued 2016, US private equity deal flow started the new year off slowly, falling over a QoQ basis to 745 completed transactions representing a total of $118.65 billion. Yet market fundamentals such as dry powder and fundraising success remain strong, with updated tallies of dealmaking throughout 2016 also ending up more robust than at first glance.
In short, even in its late innings, the buyout cycle has proven to be considerably more vigorous than expected.
That said, should current trends hold, the dealmaking environment could turn from challenging to distinctly unfriendly. As our latest US PE Breakdown details, complications such as persistently high prices could stifle PE investors' efforts to deploy capital.