Upward and Onward In an Uncertain Environment w/ Bain Capital’s Stephen Pagliuca

Private equity industry facing challenges in deal making and scalability

The private equity industry is currently experiencing a decline in deal making activity despite the abundance of available capital. This drop in activity can be attributed to several factors, such as the previous influx of investments in risky businesses and startups during a period of low interest rates, which is unlikely to return. Additionally, a shift in the global economy, including the walk back of quantitative easing, a major energy transformation, and geopolitical tensions, is affecting the investment landscape. These dynamics are expected to persist for the next decade and will require investors to consider their implications for businesses. However, the traditional buyout model of private equity, characterized by a focus on long-term orientation, specialized expertise, value-added services, and appropriate leverage, remains viable and adaptable to these changing market conditions.