Since last year, PE firms have taken a step back from closing deals. Following the deal boom of 2021, many firms enjoyed a prosperous fundraising period. But even with pockets full of dry powder, firms have been reluctant to capitalize given a flurry of global and economic headwinds.
Instead, firms have assumed a conservative approach in preparation for all eventualities: Will the Fed keep raising rates? Will inflation cool? Are we looking at a hard or soft landing?