KUALA LUMPUR (July 13): High-profile deals happening around the globe these days will more often than not mean having a private equity firm in the picture.
This alternative investment has been around for decades but its rise to prominence in recent times shows that it has made itself an integral component of the capital market.
Global private equity buyouts have totalled to 1,494 deals valued at US$245.1 billion for the first half of 2019, according to Mergermarket. In Southeast Asia, there were 16 deals worth US$1.49 billion, with at least two of them in Malaysia.
Notably, the dry powder available in the private equity space globally is at a staggering US$1.02 trillion and it is the highest amount of capital in the last 13 years.
One way of looking at it is that the deal flows in the private equity scene have slowed this year while funds have built up.
By the same token, one may see it as a huge amount of money that has been shovelled into private equity and sitting ready to be invested in the right deals.
What it can also imply is that private equity no longer plays second fiddle to the stock exchange. In fact, it is becoming increasingly appealing for companies to raise funds via private equity.
Does this mean that companies can now afford to delay the process of an IPO with the funding from private equity?