Against The Headwind Of Higher Interest Rates Private Equity Finds A New Source Of Funding
Over the past decade, the private equity industry has been on a tear, powered by cheap debt, and supported by investors chasing growth at any cost, the number of buyout deals has exploded, and the amount of money raised by the sector has risen exponentially. However, the combination of surging interest rates and increased economic uncertainty in 2022 has forced managers to take a step back and reconsider potential deals. Private Equity Takes a Break By the middle of November, the value of buyout deals completed in 2022 stood at $578 billion, according to hedge fund data provider Preqin. That...