High Prices Keep Buyout Deals In Check Despite Plentiful Capital

Private equity (PE) buyout activity has been remarkably flat since the latest expansion cycle kicked into gear back in 2010, a trend that shows little sign of changing. Unlike in past cycles, when deal making steadily gained momentum as confidence in the upswing solidified, recent buyout activity has barely budged since snapping back from 2009’s recessionary levels (see figure). In fact, as we discuss in Bain & Company’s Global Private Equity Report, buyout firms announced 1,955 transaction...