Last year may not have been spectacular for the private equity industry but modest improvements and moderation marked an upward spin in 2010.
Though not the banner years of 2005 to 2007, last year marked a significant improvement over 2009. The upswing appears even better when you consider that a more moderate approach to leverage was used in 2010. Use of leverage was close to 50%, a much lower number than previous years.
In the continuing theme of moderation, fundraising also saw a dip in 2010 as private equity funds confronted nearly half a trillion in capital overhang. It wasn’t a barnburner, but 2010 showed a positive start to recovery.