The Routledge Companion to Management Buyouts

24814

ARE LOWER PRIVATE EQUITY RETURNS THE NEW NORMAL?

Eileen Appelbaum and Rosemary Batt

           Buyout fund returns have exceeded those from public markets in almost all vintage years before 2006. Since 2006, buyout fund performance has been roughly equal to those of public markets.

Robert S. Harris, Tim Jenkinson, and Steven N. Kaplan (2015)

Introduction

Between 2013 and 2015, global private equity (PE) fundraising saw its best years since the 2008 financial crisis – raising over $300 billion each year. Fundraising in 2016 was still impressive, though down from the previous year. But is the enthusiasm of investors warranted? Do PE buyout funds deliver outsized returns to investors and will they do so in the future? This chapter answers ...