Today, the private markets have turned into a real marketplace.
You need to be extremely selective when choosing funds, managers, and strategies.
Not all opportunities are created equal — far from it.
💡 Private Equity: When rates rise, leverage breaks.
Between 2022 and 2024, central banks led one of the most aggressive tightening cycles in modern history.
👉 The Fed hiked rates 11 times — from 0% to over 5%.
This reshaped the foundations of private equity, especially leveraged buyouts (LBOs) that thrive on cheap debt.
The outcome:
- Fewer exits and IPOs,
- Less cash flowing back to investors,
- And the rise of a new trend — the dividend recapitalisation.
💰 In short: fund managers re-lever their portfolio companies to pay out cash dividends.
It’s tempting in the short term — but it weakens balance sheets and breaks the alignment between investors and the businesses they own.
📉 History has already warned us:
KB Toys and Phones 4u both collapsed soon after big dividend recaps.
🎯 As rates begin to stabilise in 2025, the real challenge is clear:
👉 Back to real value creation — operational growth, financial discipline, and transparency.
The next generation of private equity will be less about “financial engineering” and more about strategic transformation.
#Privateequity #expatrie #CEO #gestiondepatrimoine #finance
Commentaires récents