Resilient global private equity set for resurgence to long-term growth despite abrupt 2022 reversals in face of rising inflation and rates

Resilient global private equity set for resurgence to long-term growth despite abrupt 2022 reversals in face of rising inflation and rates

DUBAI, United Arab Emirates — Global private equity remains set for further strong, long-term growth even in the face of a sudden reversal in 2022, driven by economic turbulence and uncertainty amid rising inflation and interest rates, Bain & Company’s 14th annual Global Private Equity Report, released today, concludes.

The report emphasizes that last year was still the second strongest in private equity’s history, despite an abrupt mid-year derailment of dealmaking, exits and fund-raising, triggered by a series of interest rate hikes by the US Federal Reserve in response to sharply higher inflation,

While the setback from June, after unprecedented macro shocks, conspired to slow dramatically what had been a decade-long, consistent and attractive run for the PE industry, the Bain study finds that the sector’s underlying fundamentals remain strong and resilient. The report also points to the potential for the PE sector to become even more appealing to investors chafing at the limitations of public markets, despite the shifting economic tides.

Bain concludes that unlike the period from 2007-08, when the global banking system came close to collapse, nothing is fundamentally broken in the underpinnings for PE’s future expansion and current conditions are nothing the industry hasn’t dealt with successfully before.

“So far