Private equity’s public reckoning
Summary
Unhedged delves into the current predicament of the private equity industry, where firms face challenges in selling their portfolio companies due to high interest rates, a sluggish IPO market, and inflated valuation expectations. The discussion highlights the rise of "continuation funds" and firms selling assets to themselves, raising questions about transparency and actual returns. The episode also critically examines the industry's historical performance drivers, recent investment mistakes, and the controversial push to involve retail investors.Episode description
With interest rates high, private equity has had a harder time finding investors … and making money. To solve this problem, the industry has found novel ways to avoid closing their funds. But time may be running out. Today on the show, Katie Martin and Rob Armstrong talk to the FT’s US private equity editor Antoine Gara about how private equity is going to have to turn its homework in eventually. Also they go long Robert Redford and long advisory firms that specialize in cleaning up messes made by private equity.
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You can email Robert Armstrong and Katie Martin at unhedged@ft.com.
Read a transcript of this episode on FT.com
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