Private equity hit by deal slump as trade fears rise
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The year has turned a bit south for those heavy hitters in the private equity industry as Trump trade turmoil ratchets up angst with companies and top leaders. The value of global buyout deals in the second quarter of this year is poised to drop by 16% compared to the first quarter, according to a new report from consultancy Bain. For the first time in a decade, no buyout fund closed in the first quarter raised more than $5 billion, the report found. Across alternative asset classes, demand now outstrips supply by three times – making it the largest imbalance dating back to 2011. Yahoo Finance Executive Editor Brian Sozzi sits down on the Opening Bid podcast with Permira co-CEO Brian Ruder. Permira is a major player in the private equity industry, with a specialty in the consumer and technology spaces. Since being founded in 1985, it has put more than $80 billion of capital to work on deals. Some of its most headline-grabbing plays have been an early stake in Klarna (KLAR.PVT) in 2015 and a deal last year to purchase Squarespace for $6.9 billion. The company boasts 80 companies as part of its investment portfolio. Ruder shares with Sozzi how Permira is navigating the more challenging backdrop for the private equity industry in terms of doing deals to exiting prior ones.
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