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PE Play In 2011: Emerging Trends & Future Impacts

18.05.12

The year 2011 has certainly been a difficult period for the private equity industry as it has been challenged from all sides. Those out in the market to raise their first-time or follow-on funds have been pushed to a desperation point by a difficult fundraising environment. Those who are veteran players and loaded with dry powder are putting monies to work in an environment that is beset with intense competition while expensive entry valuation continues to frustrate. And those who raised billions of dollars in the benign years of 2006-07 and deployed much of it are exhibiting returns now, but the environment is no longer as healthy. As financial crisis rocks the global economy and also affects the country, industry participants have had to wrestle with significant new realities. It is now clear that PE firms need to reassess how they can continue to deliver superior returns when the traditional drivers of the past years – GDP growth, multiple expansions, readily available capital – no longer provide the lift they once did. VCCircle spots 10 dominant trends which have buffeted PE/VC markets in 2011 and will continue to shape them in 2012.

Source: VC Circle