Bain Capital: “12 Is The New 5” PE Faces Higher Hurdles
Higher interest rates and evolving market conditions have fundamentally altered private equity deal-making. Bain Capital’s 2026 global private equity report signifies that “12 is the new five,” suggesting that today’s deals now require a faster EBITDA expansion than in the past. • State Street SPDR S&P 500 ETF Trust stock is showing positive momentum. What’s next for SPY stock? Delivering that level of performance calls for a more disciplined value creation strategy and a data-driven competitive advantage, the report continued. In 2015, firms could rely on cheaper debt and rising valuations, needing five percent annual EBITDA growth to see a 2. 5x return. Today, with borrowing costs higher, lower leverage and a lack of multiple growth, deals require roughly 10 to 12 percent annual EBITDA growth to see a 2. 5x return over five years. “Gone is the glorious time in the 2010s when everybody was generating and distributing capital at a record pace. These days, LPs have narrowed their focus to the largest platforms and the top-tier alpha generators while the .
