What Does It Mean When Private Equity Sees Global Financial Crisis-Level Opportunities While Markets Appear Calm?

According to the Financial Times, 

"Dipan Patel, co-chief executive of UK-headquartered buyout group Permira, told the FT Private Capital Summit in London this week that deals cut after the dotcom crash and global financial crisis were ‘among the best’ ever. ‘We're right back there today,’ he said."

Patel's comments caught my attention because they suggest that private market valuations have become unusually attractive, comparable in some respects to opportunities seen after the dotcom crash and the Global Financial Crisis.

While this does not necessarily imply that another crisis is imminent, it does raise an important question: Why are experienced dealmakers finding opportunities today that remind them of periods following major market dislocations?

If private market opportunities are indeed becoming comparable in some respects to those seen after prior market dislocations, while the broader financial markets continue to function with relatively little visible stress, we should consider whether underlying economic and financial risks are greater than generally perceived. At a minimum, Patel's observations may suggest that pockets of stress are developing beneath the surface, even if a broader crisis has yet to emerge.