{"id":619,"date":"2025-10-13T17:21:44","date_gmt":"2025-10-13T15:21:44","guid":{"rendered":"https:\/\/silvercapital-mgmt.com\/?p=619"},"modified":"2026-02-17T15:43:45","modified_gmt":"2026-02-17T14:43:45","slug":"private-equity-a-giant-bargain-hunt","status":"publish","type":"post","link":"https:\/\/silvercapital-mgmt.com\/index.php\/2025\/10\/13\/private-equity-a-giant-bargain-hunt\/","title":{"rendered":"Private Equity: a giant bargain hunt\u2026?"},"content":{"rendered":"\n<p class=\"has-black-color has-text-color has-link-color has-medium-font-size wp-elements-68abb6abfa58ea7031e9edacd6bbb938 wp-block-paragraph\">Today, the private markets have turned into a real marketplace.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color has-medium-font-size wp-elements-0541a9107d4fda9f404387fc594a77d1 wp-block-paragraph\"><br>You need to be <strong>extremely selective<\/strong> when choosing funds, managers, and strategies.<br>Not all opportunities are created equal far from it.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"> <strong>Private Equity: When rates rise, leverage breaks.<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Between 2022 and 2024, central banks led one of the most aggressive tightening cycles in modern history.<br>\ud83d\udc49 The Fed hiked rates 11 times  from 0% to over 5%.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">This reshaped the foundations of <strong>private equity<\/strong>, especially <strong>leveraged buyouts (LBOs)<\/strong> that thrive on cheap debt.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The outcome:<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li class=\"has-medium-font-size\">Fewer exits and IPOs,<\/li>\n\n\n\n<li>Less cash flowing back to investors,<\/li>\n\n\n\n<li>And the rise of a new trend  the <strong>dividend recapitalisation<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"> In short: fund managers re-lever their portfolio companies to pay out cash dividends.<br>It\u2019s tempting in the short term but it <strong>weakens balance sheets<\/strong> and <strong>breaks the alignment<\/strong> between investors and the businesses they own.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">History has already warned us:<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><br><strong>KB Toys<\/strong> and <strong>Phones 4u<\/strong> both collapsed soon after big dividend recaps.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">As rates begin to stabilise in 2025, the real challenge is clear:<br>\ud83d\udc49 <strong>Back to real value creation<\/strong> operational growth, financial discipline, and transparency.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The next generation of private equity will be less about \u201cfinancial engineering\u201d and more about <strong>strategic transformation<\/strong>.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">#Privateequity #expatrie #CEO #gestiondepatrimoine #finance <\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.\ud83d\udc49 The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[23,11,16,22,15,13,21,18,24],"class_list":["post-619","post","type-post","status-publish","format-standard","hentry","category-non-classe","tag-ceo","tag-expatries","tag-family-office-international","tag-finance","tag-fiscalite-international-2","tag-gestion-de-patrimoine","tag-private-equity","tag-retraite","tag-wealthmanagement"],"_links":{"self":[{"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/posts\/619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/comments?post=619"}],"version-history":[{"count":3,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/posts\/619\/revisions"}],"predecessor-version":[{"id":632,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/posts\/619\/revisions\/632"}],"wp:attachment":[{"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/media?parent=619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/categories?post=619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/silvercapital-mgmt.com\/index.php\/wp-json\/wp\/v2\/tags?post=619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}