Private equity is increasingly built on shaky ground. And, as the private equity landscape evolves, investors should remain cautious. Especially given the complexities and risks of private equity funds. Private equity, once synonymous with exclusivity and high returns, is now an investment where transparency is increasingly questioned, liquidity is limited, and fees soar. This post highlights some worrying trends for...
One of the main problems with private equity (“PE”) is the lack of liquidity. To get around this, companies often use so-called NAV loans. With the downturn in the mergers and acquisitions market during 2023, many PE investors are finding themselves in a tight spot, contemplating an expensive solution: borrowing against their stakes using net-asset-value (NAV) financing. A Glimpse into the...
Private equity financing (“PE”) has always been about navigating the complexities of financial structures, seeking out lucrative deals, and balancing risks and rewards. But recently, PE firms are financing their deals and commitments in curious new ways. And with these shifts come new risks and opportunities for investors. Emerging Private Equity Financing Historically, private equity has thrived in an environment where returns...
The global economic landscape is filled with idiosyncrasies. One of these is that low interest rates can lead investors to take higher risks. A popular misconception, largely influenced by such an environment, is the role of private equity (PE) in portfolio diversification. Let's delve into the nuances of this, especially for keen investors in private equity navigating today's trends. The Lure...
