Guest post by Alexander Darcy, Manager, Private Equity, Talmix
At no point in history has the private equity industry been as competitive as it is today. Over the past 6 years, the industry has grown by $2,100 billion. With private equity firms able to raise more funding than they can spend and at low interest rates, there is fierce competition for attractive companies. Over the past 12 months we have seen some mega deals including the $18 billion sale of Toshiba’s chip unit. Buyout groups are turning money away at their fastest rate ever. With capital easily available, there is significant pressure on these firms to spend. According to Thomson Reuters, buyout volumes were up 27% in 2017. With this increasing competition and favourable borrowing conditions, funds are placing more importance on both value creation and how they scale their current portfolio support functions.
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