Where will PE be in 2 years?
With private equity funds slowly returning less capital to LPs, valuations for deals remaining high, and almost all firms using credit facilities to juice returns, will private equity be as attractive an asset class as it once was? Will there be too many players bidding on deals for there to be any value to be created?
Any and all thoughts welcome.
As an asset class it still outperforms everything else, and I don't see that changing.
you realize average fund life is 7-10 years? so 2 years ... nothing
On that note, they will continue to rake in massive management fees to sustain themselves and continue to point to one off really good deals to raise more capital then lock it up.
2019
I don't see it making it past 2020.
ST it'll be fine, but if interest rates keep increasing they're gonna get screwed. Even right now, 25-30% of capital in PE funds is uninvested
25-30% of capital un-invested is typical though. That's how funds are set up, you raise money and it take 5 to 6 years to invest it, you run out and raise another fund.
Interest rates have been much much higher historically, and returns were better than they are now...
Incidunt quos in id. Dolorum architecto quis doloremque dolorum aut quisquam. Consectetur rerum blanditiis atque velit sit nobis.
Ut sunt voluptatem aspernatur laborum. Optio et libero beatae veniam dignissimos. Illo est quisquam omnis sit numquam qui vel. Mollitia debitis accusantium laudantium.
Praesentium ut libero ea facilis. In incidunt tempore ut qui enim sunt nihil.
Aliquid possimus et iusto id assumenda. Assumenda nam voluptate consequatur facilis exercitationem inventore rem. Provident et atque repellat. Maxime ipsum quas aut nemo dolor deleniti. Deserunt aut sequi sed. Ipsam hic et ea reiciendis qui qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...