Is This the Golden Age of Private Equity?

Posted by Emily Houghton, Industry Marketing Lead
Unsure about the benefits of private equity backing? Don’t be. It turns out that “Private equity backed, middle market businesses have a long history of outperforming their non-private equity-backed counterparts,” said Pat Morris, the President and CEO at the Association for Corporate Growth. New research shows that even during the Great Recession, private equity backed companies fared better, experiencing higher asset growth and increased market share relative to their peers.
Last year was no exception, with a record year in fundraising. Large institutional investors - i.e. mutual funds, etc. - have increasingly allocated their funds under management to private equity rather than to the public markets, enticing companies to stay private longer and reap the rewards of a seller’s market.