Is Private Equity Becoming a Money Trap?
I wrote a piece for the Financial Times on the challenges private equity firms face in exiting their investments.
“Distributions to private equity investors have collapsed — from a typical 30 percent of net asset value to just 10 percent, according to Bain. Frustrated limited partners — including prominent institutions like Yale and Harvard — are increasingly turning to the secondary market to offload stakes, amid growing concerns about overallocation and above-target exposure to the asset class.”
I warn that the exit door may be too narrow for all those now seeking to reduce exposure — a dynamic that could create serious complications for investors across the private equity landscape.