A trillion-dollar conundrum

Interesting destination: Economies in South-East Asia, particularly Vietnam, appear to be benefiting from the ongoing trade tensions as businesses relocate away from China. — EPA

DESPITE the huge amount of capital at their disposal, finding the right deals and opportunities in which to put their money to generate superior returns remains a critical challenge for private equity (PE) fund managers.

With fundraising having outpaced investments in recent years, the value of unspent capital, or “dry powder” as they call it in the PE industry, has now reached a new record of an estimated US$1.7 trillion. This puts PE fund managers under increasing pressure to deploy those funds at a faster rate.