Hardly a day goes by that we do not read of yet another astonishing private equity record being broken – largest deal, largest fund, highest return, largest leverage.

Yet this scaling of the asset class brings its own challenges. Sellers have become savvier, humbled by selling too low to private equity buyers. The sheer weight of funds in the industry is driving up prices. This combination means that the industry will struggle in future to maintain the stellar return levels seen in the past.