One of the report’s most striking observations is that entry valuations remain elevated across regions. Median buyout multiples reached 12.1x EBITDA in Europe and 11.9x in North America in 2024, both near historical highs and above their respective five-year averages. In this environment, the scope for multiple expansion as a primary driver of returns has narrowed significantly, increasing the importance of disciplined pricing and value creation.

Deal multiples remain at or near record levels¹

At the same time, Bain highlights a growing concentration of capital in a relatively small number of large transactions. Deals valued at more than $1 billion accounted for 77% of total global buyout value in 2024, despite representing a much smaller share of overall deal count. This concentration has intensified competition for scale assets, contributing further to valuation pressure and higher execution risk associated with large, complex transactions.

Deal volume and value increased for most transaction sizes²

While exit activity rebounded during the year, Bain makes clear that current volumes remain insufficient relative to the industry’s expanding scale. Buyout assets under management have nearly doubled their 2019 level, yet exit value remains broadly in line with pre-pandemic figures. As a result, the stock of unrealized value continues to grow, with approximately $3.6 trillion tied up in more than 29,000 active portfolio companies globally. Extended holding periods are becoming more common, reinforcing the need for sustained operational improvement and resilient business models rather than reliance on favorable exit timing.

Global active buyout-backed companies³

Taken together, these dynamics point to a private equity environment in which returns are increasingly shaped by execution quality and strategic discipline. Elevated entry multiples, concentrated competition at the top end of the market, and a more constrained exit backdrop leave little room for error. As Bain notes, when the recovery does accelerate, it is likely to look markedly different from past cycles. In this new phase, consistent performance will depend less on financial engineering and more on the ability to generate value through operational improvement, prudent capital deployment, and thoughtful portfolio construction.

You can read Bain’s full report here.

Excludes add-ons; buyout category includes buyout, balanced, co-investment, and co-investment multimanager fund types; global buyout unrealized value through June 2024.