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Private Equity Chief Dealmakers

Outlook

In the wake of low interest rates and lackluster economic conditions that saw GDP fall by 2.3 percent, investors seeking healthy returns pumped more than $500 billion into private equity funds in 2019, according to Preqin. The firm's 2020 report indicated that investors did not appear to be deterred by declining market conditions. The number of private equity funds reached a record 3,524 in January 2020. "In 2019, the 20 largest funds captured almost half (45%) of all committed capital," Preqin noted. "That is quite a change from five years ago, when 29% of committed capital went to the 20 largest funds."

In February 2020, the global coronavirus (COVID-19) outbreak propelled the United States back into a recession, ending the longest expansion in U.S. history. The ultimate impact of the pandemic on financial markets, and private equity, remains to be seen.