Private Equity Activity Trended Downward in 2016

In the Winter edition of Private Markets Trends, I discuss the major themes of 2016 and the outlook for this year and beyond.

Last year company investments and exits trended downward for both buyouts and venture capital, compared to 2015. But overall levels are high by historical standards (except for IPOs). And private equity returns are expected to be positive for 2016—they were in the black for the first three quarters of the year.

Metal telescope on Eiffel Tower, Paris. Retro stylized photo

In 2017, fundraising should stay strong, companies are expected to continue to fetch high prices, and investment rates will keep slightly lagging the amount of capital funds collect. We expect the stock market rally and optimistic outlook for business-friendly policies from the new U.S. administration to foster continued liquidity in the private equity market and beneficial distributions for investors.

For the full paper, click here.