However, new firms in the PE space are still getting off the ground, finding and doing deals in their niche areas when they identify appropriate trends and sweet spots. Of course, having substantial backgrounds and relevant experience helps.
In the last couple of years, higher interest rates and broader geopolitical uncertainties have cast a dark pall over the once-bustling private equity (PE) space that saw a recent peak in 2021.
Global fundraising last year dropped by 22% and the amount of “dry powder” as a proportion of total assets under management (AUM) increased yet again, indicating a more cautious stance in deploying the funds, according to consultancy McKinsey.
