PE industry - where is it going in a nonzero rate environment?
Wanted to see what you guys think on where the PE industry is going given weagain, maybe for longer than just a few quarters.
Seems like from the early days of pure leverage based returns, we have now been in a 5-10yr trend of returns driven across industries by add-ons and multiple.
Buy and build is harder and more execution risk with a 4-5% rate and lower organic growth.
So more competition for the comparatively fewer assets that canon a more organic basis without acquiring their weight in gold each year? Funds closing down? Or what do you guys think? Hear there is a string of defaults coming in various sponsor platforms.