Private equity proved resilient in 2020, emerging largely unscathed from a highly disruptive year. Realized returns compared favorably with the prior five‑year average, and pooled multiples on invested capital remained strong despite market volatility. While deal activity declined sharply, leaving a significant amount of unfinished transactions, this slowdown has created pent‑up demand that is expected to boost deal volumes going forward. At the same time, investors face challenges such as elevated asset prices and ongoing uncertainty around recovery patterns. Past downturns suggest that volatile, uneven recoveries may create selective opportunities for value‑focused investors in certain sectors.

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