- Undeployed capital, or dry powder at private-equity firms, hit a record $1.2T last year, according to Preqin, and since the investors who committed this money are already paying fees, the pressure is on invest it at a time of high prices. Global average exit multiples hit 12x EBITDA last year, the highest since 2008, according to Reuters.
- "Prices are as high as they ever were," says Ralf Huep, General Manager at Advent. "There is ample capital to be invested and a lack of target companies. The dry powder is too much for what (the industry) gets going every year."
- Funds need to be creative is the consensus at an industry conference in Berlin this week.
- Previously: Blackstone eyes Buffett with envy, looks to move in on deals (Feb. 25)
- ETFs: PSP, PEX