Is the era of the mega private equity deal over?

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Blackstone,London-Stock-Exchange,Dr-Martens

The lack of exit options for investments has forced some executives to reconsider more swashbuckling strategies

Questions about the viability of the mega private equity takeover will only increase in the coming years if there is not a change of environment and a fall in interest rates. Photograph: Charly Triballeau/AFP via Getty ImagesThe investment stands as one of the more successful deals in Blackstone ’s history, rivalling its gains from hotel group Hilton Worldwide.

In the face of pushback, historian Corinne Fowler is trying to open minds to Britain’s legacy of slavery The on-time exit is the exception after a record wave of private equity mega deals that occurred in a post-financial crisis era when financing costs were low and corporate takeover valuations soared to new heights.

Today, the buyout industry is faced with the challenge of selling down a record stockpile of more than $3 trillion in ageing investments. Last year, the private equity industry saw the deficit of its cash distributions to investors versus how much committed money that was called on for investments reach a high not seen since the 2008 financial crisis, according to Bain & Company.

Another option, at least temporarily, is staying private. Last week, Permira pulled its listing of retailer Golden Goose at the last minute due to fears of a tepid market reception.

Blackstone London-Stock-Exchange Dr-Martens Nielsen Mcafee

 

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