Private equity firms are paying more for leveraged buyouts to keep pace with soaring valuations of acquisition targets, making some investors leery of whether the industry can keep delivering on promises of lucrative returns.
There is evidence some investors are apprehensive. U.S. private equity fundraising dropped to $203.2 billion in 2020 from its record high of $320.5 billion in 2019, according to Pitchbook.
Private equity firms are becoming more selective. The total volume of U.S. leveraged buyouts dropped to $84.7 billion in 2020 from $124.3 billion in 2019, according to Refinitiv.
Read more at Reuters
By Chibuike Oguh
