The appetite to commit to new buyout funds is waning as declining public market valuations make pensioners and others overweight in private holdings. Spiraling requests from the likes of KKR may make investors want to retrench: JMAGuilford
. That turned around dramatically after those crises, in 2001 and 2009, when returns hit 24% and 13%.
LPs have long memories, and they won’t want to miss what could be a post-crisis moment. Instead, they might get creative, like changing their fund allocations to dollar amounts, rather than a percentage. They might even in older funds to free up cash for new ones. Fear – or in this case, fear of missing out – drives faith.Aggregate capital raised by private equity firms fell below the $150 billion mark in the second quarter of 2022, down from over $230 billion the year prior, according to Preqin.
The slowdown comes even as a record number of funds were seeking new investor cash, with 2,650 funds targeting nearly $970 billion globally in the first quarter.Editing by Lauren Silva Laughlin and Sharon Lam
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10 Wall Street bankers set to benefit from private-equity buying spreeMeet the 10 bankers — from Goldman Sachs to Citi — poised to help private-equity giants scoop up billion-dollar deals as public valuations slide
Read more »
Breakingviews - Breakingviews: Euro weakness forces itself on ECB’s agendaThe euro falling below parity with the dollar, as seems increasingly likely, would mark a symbolic threshold for watchers of the single currency’s history. It hasn’t been that low since 2002. For European Central Bank President Christine Lagarde however, the weak currency is both an implicit criticism of the central bank’s monetary policy, and a further thorn in its side.
Read more »
UK Film And TV Set Designer 4Wood Acquired By Private Equity Company Amid South Wales Production Boom; ITV Commissions Psychological Thriller Platform 7 For New Streaming Platform – Global BriefsUK Film And TV Set Designer 4Wood Acquired By Private Equity Company Amid South Wales Production Boom UK film and TV set designer 4Wood has been bought by London-based private equity firm Connectio…
Read more »
UH receives 2022 American Hospital Association Quest for Quality PrizeThe prize committee highlighted UH’s efforts around justice, equity, diversity and inclusion, applauding its Food for Life Markets and other initiatives aimed at improving workforce opportunity and health equity in habitually marginalized communities.
Read more »
Breakingviews - Sinch swats aside short-seller a little too easilyAs the chief executive of a communication software company, Oscar Werner knows the value of sending a clear message. Yet his calm response to a short-seller attack at Stockholm-listed Sinch may only confuse shareholders.
Read more »
APS offering Cool Rewards program to save on peak hour electricity costsAPS is offering its customers a special program aimed at saving them money on their electric bills, and it helps the company save stress on the grid, especially on high-demand days.
Read more »