The private equity market has been going strong for the last few years. The S&P 500 index for example went up by a fifth in the year 2017. The key trend has been the rise of megafunds, which may be defined as funds with a value of over five billion US dollars. This trend has been most common with buyouts, especially in the USA. Research conducted by management consulting giant McKinsey points to a growing share of capital among the industry leaders. This has led to the consolidation of a previously fragmented market. Scale is another aspect gaining traction among private equity investors. While such investments will keep flooding in, which industries and its players will it most attract towards remains a matter of debate, which only time will settle.

Source:https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/the-rise-and-rise-of-private-equity

Uploaded Date:07 June 2019