CASH HEADED OUT, NOT IN: Private equity keeps turning into a bigger adventure than I bet its investors realized. With rising interest rates having squashed exit valuations, limited partners are lately having to contribute way more in the way of capital calls than they are receiving in distributions.
It wasn’t supposed to work this way! And here I thought volatility laundering was the big problem to be worrying about.
Private-equity investors get an unhappy surprise
By Thomas K. Brown,
CASH HEADED OUT, NOT IN: Private equity keeps turning into a bigger adventure than I bet its investors realized. With rising interest rates having squashed exit valuations, limited partners are lately having to contribute way more in the way of capital calls than they are receiving in distributions.
It wasn’t supposed to work this way! And here I thought volatility laundering was the big problem to be worrying about.