BDO's Tenth Annual Private Equity PErspective Survey

February 2019

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Bracing for a Market Correction, While Uncovering Value


Preparing for a Market Correction 

2019 will mark the 10-year anniversary of BDO’s inaugural Private Equity PErspective Survey, which launched amid the Great Recession in 2009. Ten years later, at the tail-end of the longest bull market on record, we stand at the precipice of the next market downturn. We’re overdue.

Most private equity professionals agree that a bear market correction—typically defined as a 20 percent decline in the broader stock market—is in sight. However, predictions on timing vary. KKR, for example, is predicting a “mild recession” in 2019. Blackstone Group LP’s Jon Gray, meanwhile, has gone on record to say he is “willing to bet no recession in 2019.”

According to BDO’s Tenth Annual Private Equity PErspective Survey, 89 percent of private equity fund managers expect a prolonged downturn sometime in the next two years. Over one-fifth (22 percent) anticipate a market correction in the next 6-12 months. Meanwhile, more than two-thirds (67 percent) anticipate a market correction in the next 1-2 years...
 

READ THE COMPLETE RESULTS ON BDO.COM