Moonfare
The_Case_for_Private_Equity
White paper
The Case for Private Equity in Downturns
October 20, 2024
4 pages |arrow icon5 min

About the report

Private equity’s model and form of ownership has demonstrated resilience in times of elevated inflation and muted economic growth. In this report, we explore the key features that give private equity the capacity to thrive even when markets turn for the worse.

Key findings‍

  • Record amounts of dry powder Massive war chest can help managers to shepherd existing portfolio companies through market turmoil.
  • Lower valuations With valuations tracking lower in 2023, managers can deploy their dry powder at much more attractive entry multiples.
  • Adopting new levers of value creation To respond to rising prices and interest rates that constrain multiple expansion, private equity firms can also turn focus to operational improvements to create value.

Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. Private Equity is a high-risk investment and you are unlikely to be protected if something goes wrong. Only investors fulfilling all the required eligibility criteria will be allowed to invest.

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