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By Jerôme MULLMAIER, Partner, IM Mathilde SCHEIRLINCK, Senior Associate, IM, Loyens Loeff Luxembourg S.À R.L.
Turbulent market conditions earmarked by expensive borrowing costs and low asset valuations are causing investment returns in the private equity industry to decline. These agitated conditions are having a particular knock-on-effect in fundraising efforts, which is projected to continue a downhill trend.
According to data from Preqin as of Q3 2023, the pace of fund closings is in sharp decline compared to 2022 despite a recent uptick in the capital amount raised. However, the upward trend is attributed mainly to the benefit of large mega fund managers, such as CVC, who recently closed a record-breaking deal worth 26 billion...
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