Download PitchBook’s Report here.
Within PE subcategories, we expect buyout funds to continue to garner the bulk of fundraising in the coming years, but growth funds have seen increasing LP interest and offer an alternative to the VC asset class. Growth equity tends to focus on cash-generating, positive-income portfolio companies in need of expansionary investment. That should remain attractive as allocators balance hunger for growthstyle returns within their private market portfolios with lower risk than venture investing. Against that backdrop, our base case expects growth funds to expand from $1.1 trillion in AUM in 2022 to $1.8 trillion in 2028. Meanwhile, we see buyout funds reaching about $6.0 trillion from a 2022 starting point of $4.0 trillion. Our good case assumes PE funds find their footing in the new macro environment and grow on pace with the prior decade, reaching $9.7 trillion. In this setting, returns are a robust 20% annualized, roughly in line with the strongest periods of performance PE has seen.
(Past performance is no guarantee of future results.)
Latest news
Spread per turn of leverage tightened 5% for lower middle market
Lenders benefited from better risk-adjusted pricing for larger middle-market and large-cap deals in the third quarter.
Middle market debt held by BDCs vs High yield vs Treasury yields
The blue line shows BIZD’s dividend yield rising 130bps in a month to 12.9% as of 22 October, although most…
Single-B loan pricing faces renewed pressure in October; 150 bps gap to double-Bs
We noted in our monthly leveraged loan coverage how average new-issue institutional loan yields moved somewhat counterintuitively: single-Bs tightened 14bp…