The Private Equity Conundrum23rd September 2015
Private equity has its challenges. Investments are illiquid. No matter what your investment record looks like the pressure is on with every new fund.
Pressure from stakeholders to realise investments and unfavourable market situations can lead general partners (GPs) to sell a very good company below its true value. Conversely, the rush to allocate available capital can lead GPs to overpay at investment.
After hitting a nadir in 2009, the industry has been increasingly bullish of late. Market participants have been buoyed by low interest rates and the improved prospects this has brought for assets in the market. However, this bullishness may be misplaced. This Insights piece unpacks the UK private equity market and advises on the best strategies for GPs to follow.Download the full PDF version here