Private equity (PE) as an asset class has boomed globally. Demand for ownership of businesses which are not listed on stock exchanges (making them ‘private’ companies) has been a boon for investors.
As the Australian Financial Review (AFR) reported last week, at the end of 2017, the global PE industry was, “sitting on a record level of dry powder of $US633 billion.” This was a direct result of fundraising activity of global PE firms. Data from industry tracker Preqin showed that global PE firms raised a huge $US453billion in 2017.
But in the face of the demand for these investments, Daniel Rasmussen of Verdad Advisers has a sceptical opinion on the state of the current PE environment….
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