More dry powder in PE space to ignite competition: Bain

Singapore

The "mountains of dry powder" in the private-equity (PE) space are expected to lift the valuations of deals and stiffen competition in the market further, a report by Bain & Company said yesterday.

"Asset prices (will be) kept high as record-low interest rates and the buoyant equities markets will likely depress deal supply, as well-performing companies go to the wide-open IPO (initial public offering) market," it said. This comes amid a slight shift towards optimism in the PE space last year for the first time in five years, Bain noted in its global private-equity report this year.