Private equity has long promised investors better returns than public markets, while offering entrepreneurs like Dan Namerow life-changing exits. But the market that made those deals work has changed. Higher interest rates have made debt-financed buyouts harder to justify, while deals struck at peak valuations in 2020 and 2021 have become more difficult to exit. University of Chicago Booth professor Steven Kaplan says US buyout funds largely beat public markets for decades, but that pattern has reversed since 2019, while PitchBook reports that the backlog of companies held by private equity firms has risen to more than 33,000. The result is a tougher environment where firms are being judged less on leverage and multiple expansion, and more on whether they can actually improve the businesses they buy.
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Lol, if you had a soul you wouldn't of sold your business.
Facts.
7:36 the application of AI . . . .baw- ha-ha-ha
Reaching for straws
Simple question can these private equity funds beat a large cap index fund? Oh yes, and please take fees into account. Long-term a large Index fund is hitting about 17% return Y/Y but this is long-term 10+ years invest investment. Can these private equity firms with their fees included say the same thing. The fee on a large cabin index fund comes in at about 0.2% you can do the math. These private equity firms can they say they’re beating a large cap index fund, which is nothing more than a fund that’s tracking large companies in the stock market.
So what happens when there are no companies left for them to destroy?
Private equity is a massive scam. It will ruin the small family owned business climate for millions. Then comes the crash that will ruin the entire economy. It's like subprime lending crash but much worse
Bloomberg needs to be shut down for abusing Fair Use and Bloomberg himself needs to be arrested for being a useless bag of human garbage.
When Regan was President and was doing his usual deregulation, PE was born. But they were originally called corporate raiders.
When PE openly killed Joann's Fabric, a lot of non-finance people started thinking about it as a scam system. Now, normal people I know start moving their business, if a doctor's office, vet, or dentist gets picked up by PE. Why stick around and watch a service go downhill?
PE ruins everything it touches. Listen to Rattner, he only cares about the quarterly gains. That’s it!
PE destroys everything they touch. Needs to be illegal.
Y’all are ruining businesses and companies that people love. We stop going once you make changes and you drive them into bankruptcy.
You also kill jobs. I fail to see any public good here.
PE is the worst expression of capitalism. Making everything worse for no reason
Private equity are a cancer to any economy.
Oh no, the free market may swing the other way, time for a government bailout.
Privatize the Gains
Socialize the Losses
Anyone ever hear about Chainsaw Al?
Buy out and walk out. Don't let them keep you and drain you.
Dan still living on the beach while his employees got dealt all the nonsense. "got mine"
What horse crap! Private equity has ruined America. One example they bought up all the trailer parks across the country raise the rent which forced all the people out they couldn’t afford to move their trailers so they foreclosed on their trailers and then they fixed them up a little and now it’s so expensive to live in a trailer park. It’s insane. It’s just these are vultures.
Ponzi debt.
I think professor Kaplan is heavily invested in private equity and defending it…but it will become clear that private equity success was just about the money printing ….
Good for Dan! Enjoy Costa Rica! 🎉
The business model of private equity is a pyramid scheme
Nationalize private equity without compensation and hike wages and benefits to workers.
Anyone involved with private equity should spend life in prison. I mean, jacking up veterinary costs to line their own pockets? How are they not being held liable for animal abuse from that?
Eventually they will run out of companies to ruin.
"PE successfully improved the companies" … yo professor – they "improved" the companies by levering crap out of them prior to dumping them and often crippling them beyond repair … this PE creep is destroying dentistry, eye docs, plumbers, hvac contractors – was never meant for that
Watch the credit spreads!!!
Private equity guts local businesses and local economies to ship the money out to Wall Street and the top 10% They only leave a rotting husk behind for the average person the deal with at the end.
well I guess owners should understand what does it mean to 'sell' your business no matter who the buyer is..
Really great interview with Dan. Brings up good points without judgement. Still hate PE but he's providing objective insight.
"Too Much Money Chasing Too Few Deals"
The fact that they are going after 401-K money tells you EVERYTHING you need to know. They are not doing well, many are floundering, and they are looking for a bagholder – bigtime. Absolutely disgusting what PE has done in the Hospital/Medical space.
Private equity has made everything get worse and worse. Panera Sip Club, increased prices, worse ingredients, shittier vet care. They are a cancer thrust upon the world.