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Private equity finds a footing but still searching for momentum as two-year slump bottoms out–Bain & Company’s PE Midyear Report

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Global PE looks to have arrested its freefall as the slide in dealmaking and exits levels off Buyout deal numbers set to stay flat vs 2023 with higher average deal size driving a rise in deal valueMultiple challenges facing the sector put the premium for PE firms on adjusting to a new normal

BOSTON, June 3, 2024 /PRNewswire/ –The two-year long slump in global private equity looks finally to be bottoming out, with the industry finding a footing from which to climb back, Bain & Company concludes in its 2024 Private Equity Midyear Report. 

But while PE activity appears to have arrested its freefall, Bain cautions that it remains subdued by historical standards – especially relative to a $3.9 trillion mountain of available dry powder ($1.1 trillion of this committed but uncalled capital in buyout funds). Prospects for revival remain tentative with momentum still scarce, Bain finds.

Among positive signals for prospects, the PE industry’s precipitous slide in both deal-making and exits over the past two years largely levelled off in the first months of this year, Bain’s analysis shows.

Globally, PE’s buyout deal count through May 15 was down 4% on an annualized basis versus 2023, putting it on track to finish the year broadly flat compared with last year’s tally. Buyout deals’ global value is on track to finish the year at $521 billion, up 18% from 2023’s $442 billion – but with the rise driven by a higher average deal size ($916 million, up from $758 million) rather than more deals.

Exits also looked to have halted the steep declines of the past two years. The total number of buyout-backed exits is tracking flat on an annualized basis, while exit values are trending to finish 2024 at $361 billion, registering a 17% rise from 2023 – but still leaving this year shaping up as the second worst for PE exit values since 2016.

In a further indication of steadily reviving optimism over the outlook, Bain also reports that informal discussions with general partners (GPs) globally suggest that deal pipelines are already beginning to refill, with many sighting “green shoots” of a recovery emerging. GPs’ latest observations are more upbeat than in Bain’s most recent March survey of 1,400 PE market participants which found that 30% did not expect a dealmaking resurgence until Q4 of this year, with close to 40% expecting that to take until 2025 or beyond.

Yet while Bain’s report notes that 2024’s final tally of deal value will likely approach that of the buoyant years before an anomalous post-pandemic spike in 2021, it suggests that it is too soon to assume a “return to normal”, with a sustained upswing in activity, given the series of key challenges that confront the PE industry.

“With the year having got off to a better start we’ve been cautiously optimistic about 2024’s outlook. We’re seeing that validated with the data that’s coming through, as well as other indicators, showing that PE is at an important turning point with dealmaking and activity now picking up. So we see better prospects emerging,” Rebecca Burack, global head of Bain & Company’s Private Equity practice, said. “But the challenges facing the industry, for example around interest rates, value creation, and especially the exit logjam and the need to respond to pressure to get capital back to limited partners, mean this year will also be an important inflection point in other ways, too, as GPs look to get the wheel spinning once again.”

Adjusting to the ‘new normal’ imperative amid higher rates and an array of challenges

Bain’s Private Equity Midyear Report maps out an array of critical challenges that PE players are under pressure to address urgently, from prolonged uncertainty over the macro-economy and interest rates that look set to stay higher for longer, to continuing geopolitical turbulence, to the sector’s exits gridlock. Bain urges that PE firms need to move quickly and decisively to adapt to a changed market – rather than expect a rapid resumption of business as usual, as seen before the market slowdown over the previous two years.

“The imperative is to adjust to the ‘new normal’,” said Hugh MacArthur, chairman of the global Private Equity practice at Bain & Company. “It typically takes 12 months or more for a boost in exits to produce a turnaround in fund-raising – so even if dealmaking picks up this year it could take until 2026 before the fundraising environment really improves. So in a hotly competitive market for capital, PE firms needs to make decisive moves to change the narrative. They need to use this time to take a clear look in the mirror and understand how LPs really see their fund and then to translate those insights into stronger performance and more competitive positioning. Importantly, that includes sharpening value creation – in an environment of higher rates the premium is going to be on producing margin and revenue growth in portfolio businesses.”

Exits gridlock persists, multiplying pressure to return more cash to LPs and hampering fund-raising

The continuing deep freeze afflicting PE exits is a critical area of pressure highlighted in the report. It finds that the continued low level of exits, leaving PE firms sitting on trillions in unsold and aging assets, is making life increasingly uncomfortable for GPs in multiple ways.

Crucially, Bain notes that the prolonged slump in exits is preventing the return of capital to LP investors that are increasingly pressing for a rise in current low levels of distributed-to-paid-in capital (DPI). In turn, LPs’ dissatisfaction over distributions is impeding new fund-raising with investors focusing new commitments on a narrower swath of favored funds. A recent poll by the Institutional Limited Partners Association showed only a small minority of LPs were satisfied by the urgency GPs are placing on increasing liquidity.

The impact on fund-raising means that the environment for PE to secure new capital remains a tale of haves and have-nots, Bain reports. Through May 15, the industry raised $422 billion versus $438 billion over the same period last year. The trend suggests fundraising will reach an annualized $1.1 trillion in 2024 – marking a 15% drop from the previous year. Buyout funds are dominating the fund-raising landscape , with $199 billion raised up to May 15, and the category set to reach a tally of $531 billion by year-end, a 6% rise from 2023’s total.

Bain highlights that while the overall fund-raising figures look relatively robust, LPs’ increasing focus on a narrowing swath of favored fund managers means that in buyouts the 10 largest funds closed took in some 64% of total capital raised so far this year, with the largest single fund (the $24 billion EQT X fund) accounting for 12%.  As a result, the bulk of buyout funds are left to battle over the remaining 36% of capital available and at least one in five buyout funds is closing under its target.

One brighter spot for exit prospects is a reopening of the initial public offering market, sparked by a surge in public equities over the past six months that has also relieved some liquidity pressures on LPs, today’s report notes. But while a revived IPO market has produced several large exits in Europe, the report adds that IPO exit channel still represents only a sliver of exit totals, with the corporate deals and sponsor-to-sponsor exit channels still largely flat.  

Persistent macro nerves and rate-related operational challenges keeping dealmakers cautious

Persistent macro-economic and geopolitical uncertainties, with still-elevated global interest rates that may not be lowered as much as expected this year, also remain a persistent drag on PE’s revival prospects, Bain finds. It notes that still-elevated rates are keeping dealmakers cautious, distracted, and wary on either side of transactions – while also aggravating the challenge of managing rate-related issues within existing portfolios.

Interest rates that have stayed higher for longer have also raised the stakes for funds in holding assets over longer periods in the face of the declining exits, Bain says. Balance sheets have come under pressure from the increased cost of debt financed by adjustable-rate loans so that portfolio managers are spending increasing time in negotiation with lenders and managing operational issues, with this then acting as a brake on new dealmaking activity.

Against this backdrop, and with a full-blown revival in fundraising and overall PE activity likely to take a number of months to come through, Bain’s analysis advocates for firms to implement determined action to fully understand their LP investors’ expectations and needs – and to develop a comprehensive plan across their portfolios to meet those requirements and deliver value.

Media Contacts:
Dan Pinkney (Boston) — Email: dan.pinkney@bain.com
Gary Duncan (London) — Email: gary.duncan@bain.com
Ann Lee (Singapore) — Email: ann.lee@bain.com 

About Bain & Company

Bain & Company is a global consultancy that helps the world’s most ambitious change makers define the future.

Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a platinum rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 1% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

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Faith: The Spark Born by the Yudu Riverside

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BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:

David Ferguson:

This is the Yudu River. One dusk in October, 1934, more than 86,000 soldiers of the Red Army crossed this river and embarked on the Long March, a two-year saga that has left its mark in history.

Yet, lingering here by the river, I am struck by a simple question: If you have faith in a bright future, and reality seems to thwart you at every turn, where do you find the moral strength to keep believing?

Wang Xiaohui:

At dusk on Oct. 17, 1934, an army of more than 86,000 troops gathered along the banks of the Yudu River. Over 800 boats of all sizes floated on the water, bound together with planks collected from villagers’ home gates, timber beams, and even coffin boards reserved for elderly locals. The people of Yudu built this pontoon bridge, determined to help the army led by the Communist Party of China (CPC) cross the river.

At that time, no one knew that the great expedition embarked upon by the banks of the Yudu River would go on to transform China and exert far-reaching influence across the world.

China in the 1920s and 1930s was plagued by chaos and despair.

The Kuomintang (KMT), the ruling party back then, was not capable of unifying the nation, leaving warlords locked in endless fighting. In 1931, Japanese invaders launched an assault on northeastern China, beginning their invasion. Crushed under domestic turbulence and foreign aggression, countless civilians were displaced, with many even starving to death on the streets; in certain regions, severe drought resulted in zero harvests, yet the farmers were forced to pay land taxes assessed for more than a decade into the future.

Amid this turmoil, the only glimmer of hope for the Chinese nation was kindled by the revolution ignited by the Communist Party of China.

The CPC, dedicated to winning liberation for the people and national independence, built contingents of workers’ and peasants’ Red Army troops and revolutionary base areas across the countryside. Impoverished farmers were granted land ownership, as well as unprecedented political dignity. On Nov. 7, 1931, the Chinese Soviet Republic was officially proclaimed in Ruijin, then a small village in southeastern China’s Jiangxi Province, establishing a Soviet system under which workers, peasants and soldiers elected representatives to run regional affairs and make policies.

The communist ideal of a fair society free from exploitation and equality for all blazed like a spark in the darkness; it kindled hopes among impoverished Chinese and became the wellspring of faith that enabled the Red Army — a force made up of poor workers and peasants — to overcome all hardships in the days to come.

Yet, bright as the spark was, it burned thin and fragile at times. Could this flame still endure when the ideals it carried were repeatedly battered by harsh reality?

In September 1933, flocks of warplanes clouded the skies over the Red Army’s revolutionary base areas. By then, Japanese invaders were steadily advancing towards North China, but Chiang Kai-shek’s KMT turned a blind eye to the looming national crisis. They mobilized over a million troops and more than 200 aircraft to launch a massive offensive at the Red Army’s base areas. Over the previous three years, Chiang Kai-shek had mounted four major military “encirclement” campaigns aimed at exterminating the Red Army, but all ended in failure. He was desperate for a pivotal victory to restore his prestige and to wipe out the CPC and the Red Army.

At the time, the commander of the Red Army abandoned mobile warfare tactics pioneered by Mao Zedong and other commanders, opting instead for rigid positional warfare involving conventional head-on clashes. But the reality was, some Red Army units didn’t even possess a single light machine gun; how could they confront the heavily-armed KMT army head-on?

Zhong Ming, a Red Army medic, could never erase the memories of gravely wounded soldiers being carried to his aid station. He remembered how a soldier whose chest was blown open begged his comrades to end his life. At the frontline, a whole battalion of Red Army soldiers religiously followed orders to defend crude earth-and-wood bunkers, but under the constant barrage of KMT artillery and airstrikes, every soldier in the battalion laid down their lives; not a single man survived.

What’s more heart-wrenching is that no matter how fearlessly the Red Army fought, the steep imbalance in military strength, paired with erroneous military command led to irreversible losses. By October 1934, the KMT’s iron-clad encirclement closed menacingly around Ruijin.

Faced with this dead-end, what decision would you make?

This stood as the most agonizing decision for the Red Army. The biggest challenge lay not in sacrificing one’s life for an ideal, but in finding a way to keep the revolutionary cause alive.

To stay meant defeat — the Red Army had no room to maneuver within the Central Revolutionary Base Area. To break through the encirclement, however slim the odds, offered a fighting chance. Preserving the Red Army as a living force mattered much more than clinging to isolated strongholds. Where the spark survives, the path ahead remains lit.

The air already turned chilly in October. Units of the Central Red Army assembled in Yudu to prepare for a strategic shift. The plan was kept strictly classified; none of the soldiers knew they were evacuating the base areas, only sensing an unusual vibe.

At dusk on Oct. 17, crowds lined up at the Yudu riverbank. Tens of thousands of villagers flocked from every corner to see the Red Army off. They walked alongside the marching columns, slipping food like eggs and glutinous rice balls into the soldiers’ pockets, praying for their swift homecoming.

The main force of the Central Red Army set off. Within days, they left behind revolutionary base areas where they had survived, grown and taken root. No one anticipated that the journey they embarked on would become the Long March, a trek spanning over 10 provinces. Still less could anyone imagine that this journey would ultimately pave the way for a brand-new China.

Looking back on this chapter of history, many claim that the Red Army only set out on this expedition because the enemies left them no other choice. To a degree, yes, the Long March was indeed a forced strategic shift, yet this fact does nothing to diminish its greatness and glory.

The ordinary Red Army soldiers had no idea how far they would march, or where they were heading. But they clung firmly to their founding mission: to deliver liberation for the people and independence to the nation. This unswerving conviction kept them from disintegrating through countless perils, sustaining them as they marched into the unknown with resolve.

David Ferguson:

I now realize that faith and ideals untested by harsh reality may have no true substance.

Since its founding, the Communist Party of China has always upheld the realization of communism as its fundamental goal. Despite devastating losses and extreme adversity, the Red Army continued to press forward resolutely and never faltered. Its inner strength came from an unshakable belief in the cause, an unwavering commitment to the founding aspiration, and a profound sense of mission. The Red Army was never fleeing pursuers in search of safety; it was marching forward to a future in which it had a steadfast belief.

Wang Xiaohui:

The Long March went on for two years. The Red Army trekked 25,000 li across some of China’s harshest terrain, but they kept their heads high, seeking hope amid despair and marching towards light through unending darkness. The lofty ideals and sense of mission they upheld have also become the torch that guides generations of CPC members in the following centennial, tempering them into steel as they press forward unswervingly toward national rejuvenation.

That spark lit along the Yudu River has never dimmed since.

China Mosaic
http://www.china.org.cn/video/node_7230027.htm

Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/16/content_118736835.shtml

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Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026

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SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.

Spotlight: 1.6T LPO Performance & High Customer Traction

AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:

Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.

Surging Market Interest

Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.

Overview of Other Innovations at OCP 2026

In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:

12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.

About Linktel Technologies

Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.

For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.

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Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair

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GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.

Smart Life Solutions Address an Aging and Globalized Market

A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.

For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.

Service Robots Demonstrate Expanding Real-World Applications

The Service Robot Zone remains one of the fair’s most popular attractions in this edition.

Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.

More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.

The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.

As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.

For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16

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