Bain & Co. predicts $1.1 trillion in global buyout transactions by the end of 2021, more than triple the $306 billion in transactions in 2011, according to its latest report.
Private equity managers worldwide have a total of $3.3 trillion in dry powder, up from $1.2 trillion in uninvested capital they held 10 years ago, the report said.
The report notes that global alternative investment fundraising is expected to reach $1.3 trillion in 2021, more than three times more the $393 billion raised a decade ago.
Alternative investment funds have raised $631 billion in the first half 2021, but not all strategies are faring the same. Buyout, growth and venture capital funds had the biggest increases from 2020, up 60%, 39% and 36%, respectively, the Bain report said. Meanwhile, secondaries, distressed and real estate funds raised less capital, down by 34%, 32% and 21%, respectively.
Most of the capital was collected by the largest funds. Nine megafunds, defined as funds with $5 billion or more in capital, raised a total of $120.4 billion, more than half of the approximately $243 billion in buyout capital raised in the first six months of 2021.
Bain & Co.'s transaction estimate excludes deals involving special purpose acquisition companies.
