Opinion
Private equity has become hazardous terrain for investors
Governance shortcomings in private equity, overlooked in the cheap money bonanza, now look pressing as institutional investors query the values private equity managers put on portfolio companies.
John PlenderThe rise and rise of private markets has a feeling of inexorability about it. Despite increased financing costs and an uncertain growth outlook, private market assets under management totalled $US13.1 trillion ($19.5 trillion) on June 30 last year, having grown at nearly 20 per cent a year since 2018, according to consultants McKinsey.
While fundraising has declined from its 2021 peak, a recent survey by State Street found that most institutional investors intended to increase their exposure to almost all private markets, including infrastructure, private debt, private equity and real estate.
Financial Times
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Investing
Fetching latest articles