Private equity losing out to cash-rich buyers on the big deals

Private equity groups are losing out in fierce bidding wars for hot targets to cash-rich strategic buyers, driving down the share of deals involving buyout groups to the lowest level since 2009, according to analysis from Bain & Company, the consultancy.

The research found that just 4.2 per cent of deals ended up with private equity buyers in 2016, down from 5.4 per cent in 2014. PE’s share of deals peaked in 2006 at 7.9 per cent.

Source: Financial Times

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