Chris Witkowsky on the last decade of private equity investing.
As anyone with even a passing interest knows, over the last decade, private equity has had quite a run: Deal multiples have hit record highs; while deal count declined, investment value grew again last year; and so-called “dry powder” – capital sitting ready to invest – hit a record high of $2 trillion in December 2018 across all fund types.And yet, as always, questions remain: Can prices sustain their extraordinary levels? When PE investors run their crucial return projections – what assumptions are they making about the broader economy… or even a recession? And what about politics – is the industry ready for the 2020 campaign and new questions about the capitalism? Few people follow private equity – or have more sources and resources in the industry – than Chris Witkowsky, Editor of PE Hub and Buyouts. We discussed what’s next for PE, what he hears from investors and private equity firms, and whether they believe PE’s extraordinary run can continue.