Private equity firms around the world are bracing for tough conditions for both fundraising and deal-making, according to the 2012 Global Private Equity Report, released on Tuesday by Grant Thornton.
The most dramatic decline in optimism from 2011 is evident in the BRICS: Brazil, Russia, India, China and South Africa, according to the report.
This year, 78 percent of respondents in these markets described the fundraising outlook as "negative" or "very negative". In 2011, the figure was 39 percent.
Many private equity executives expect both China and India to suffer a decline in deal activity in the next 12 months. This represents a dramatic turnaround in sentiment for both countries. In 2011, 78 percent of respondents expected investment activity in India to increase, with the remaining 22 percent expecting it to remain steady. This year, 45 percent expect it to decline, the report showed.