{"id":6601,"date":"2026-02-06T08:53:30","date_gmt":"2026-02-06T08:53:30","guid":{"rendered":"https:\/\/qualitasfunds.com\/?p=6601"},"modified":"2026-02-06T13:42:42","modified_gmt":"2026-02-06T13:42:42","slug":"operating-in-a-high-valuation-private-equity-market","status":"publish","type":"post","link":"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/","title":{"rendered":"Operating in a high-valuation private equity market"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">One of the report\u2019s 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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Deal multiples remain at or near record levels<sup>1<\/sup><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"886\" height=\"502\" src=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7.png\" alt=\"\" class=\"wp-image-6616\" style=\"aspect-ratio:1.7649955678124691;width:557px;height:auto\" srcset=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7.png 886w, https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7-300x170.png 300w, https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7-768x435.png 768w\" sizes=\"auto, (max-width: 886px) 100vw, 886px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><br>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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Deal volume and value increased for most transaction sizes<sup>2<\/sup><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"567\" height=\"470\" src=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-4.png\" alt=\"\" class=\"wp-image-6604\" srcset=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-4.png 567w, https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-4-300x249.png 300w\" sizes=\"auto, (max-width: 567px) 100vw, 567px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While exit activity rebounded during the year, Bain makes clear that current volumes remain insufficient relative to the industry\u2019s 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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Global active buyout-backed companies<sup>3<\/sup><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"567\" height=\"288\" src=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-3.png\" alt=\"\" class=\"wp-image-6602\" srcset=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-3.png 567w, https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-3-300x152.png 300w\" sizes=\"auto, (max-width: 567px) 100vw, 567px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can read Bain\u2019s full report <a href=\"https:\/\/www.bain.com\/insights\/outlook-is-a-recovery-starting-to-take-shape-global-private-equity-report-2025\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">here<\/mark><\/a>.<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Notes<\/strong><\/summary>\n<p class=\"wp-block-paragraph\"><strong>Note 1. <\/strong>Data as of September 30, 2024.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Note 2.<\/strong> Sources: Dealogic; Bain analysis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Excludes add-ons, special-purpose acquisition companies, loan-to-own transactions, and acquisitions of bankrupt assets; based on announcement date; includes announced deals that are completed or pending, with data subject to change; geography based on target\u2019s location; average deal size calculated using deals with disclosed value only.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Note 3.<\/strong> Sources: Pitchbook; Preqin.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\">Excludes add-ons; buyout category includes buyout, balanced, co-investment, and co-investment multimanager fund types; global buyout unrealized value through June 2024.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After two years of market correction, 2024 delivered the first clear signs of renewed momentum in private equity. According to Bain &#038; Company\u2019s (\u201cBain\u201d) Global Private Equity Report 2025, global buyout investment value increased by 37% year over year, while exit value rose by 34%. Yet this recovery remains uneven and continues to be shaped by structural pressures that are redefining how value is created across this asset class.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[81],"tags":[],"class_list":["post-6601","post","type-post","status-publish","format-standard","hentry","category-economic-environment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Operating in a high-valuation private equity market - Qualitas Funds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Operating in a high-valuation private equity market - Qualitas Funds\" \/>\n<meta property=\"og:description\" content=\"After two years of market correction, 2024 delivered the first clear signs of renewed momentum in private equity. According to Bain &amp; Company\u2019s (\u201cBain\u201d) Global Private Equity Report 2025, global buyout investment value increased by 37% year over year, while exit value rose by 34%. Yet this recovery remains uneven and continues to be shaped by structural pressures that are redefining how value is created across this asset class.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\" \/>\n<meta property=\"og:site_name\" content=\"Qualitas Funds\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-06T08:53:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-06T13:42:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7.png\" \/>\n\t<meta property=\"og:image:width\" content=\"886\" \/>\n\t<meta property=\"og:image:height\" content=\"502\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Carlota Martin \u00c1lvarez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carlota Martin \u00c1lvarez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\"},\"author\":{\"name\":\"Carlota Martin \u00c1lvarez\",\"@id\":\"https:\/\/qualitasfunds.com\/en\/#\/schema\/person\/f81052e671d428e6bd132b63f5a125f1\"},\"headline\":\"Operating in a high-valuation private equity market\",\"datePublished\":\"2026-02-06T08:53:30+00:00\",\"dateModified\":\"2026-02-06T13:42:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\"},\"wordCount\":428,\"image\":{\"@id\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/qualitasfunds.com\/wp-content\/uploads\/2026\/02\/image-7.png\",\"articleSection\":[\"Economic environment\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\",\"url\":\"https:\/\/qualitasfunds.com\/en\/operating-in-a-high-valuation-private-equity-market\/\",\"name\":\"Operating in a high-valuation private equity market - 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