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  "documentTitle": "Global Private Equity Report 2016",
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  "notes": "The chart shows the length of US expansion (positive bars) and recession (negative bars) periods from 1924 to 2016.",
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      "text": "Length of US expansion and recession periods",
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      "text": "Months of expansion/recession: 120",
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      "text": "The timing of recessions is hard to predict, but just as no one wants to have to fix the roof during a hurricane, the time for PE firms to prepare for a downturn is before the storm hits. Portfolio assets acquired within the past two or three years are particularly susceptible to buffeting by economic turbulence. Purchased at prevailing high multiples and under sunny economic skies, many of these holdings were set up for exit sooner rather than later.",
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      "text": "As every PE investor who has weathered past turns of the business cycle knows, recessions have a powerful way of concentrating the mind. For most, an economic downturn derails business plans, curtails access to credit needed for financing new acquisitions and freezes exit channels, cutting deeply into returns. For those nimble and adaptable enough to fortify themselves against inevitable economic headwinds, a recession can be a time to shore up portfolios and seize new opportunities.",
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      "text": "GPs may soon find themselves facing the test. With the economies of most developed countries struggling, China in the grips of a major slowdown and the aging US expansion staggering toward its seventh anniversary, the period ahead could see the stalling of global growth (see Figure 3.1). A recession, or even continued near-zero growth, could wreak havoc on the holdings currently in PE portfolios and on investments GPs will make over the coming year.",
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      "text": "3. Paying for growth while waiting for the recession",
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      "text": "Figure 3.1: As the current expansion nears its seventh anniversary, GPs must weigh future recession risks",
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