Emeritus Prof Christopher May on Nostr: #ponzischeme klaxon: With the reduction in plausible (profitable) 'exit strategies' ...
#ponzischeme klaxon:
With the reduction in plausible (profitable) 'exit strategies' #privateequity has taken to selling assets from older funds (allowing #investors to cash out) to newer funds where investors are expecting pay out(s) less immediate;
its a sort of pass the parcel until some investors find the asset is not worth what their fund has paid for it...
The key problem is if a PE fund is selling to itself, there's unlikely to be an independent valuation.
There's a scandal coming!
With the reduction in plausible (profitable) 'exit strategies' #privateequity has taken to selling assets from older funds (allowing #investors to cash out) to newer funds where investors are expecting pay out(s) less immediate;
its a sort of pass the parcel until some investors find the asset is not worth what their fund has paid for it...
The key problem is if a PE fund is selling to itself, there's unlikely to be an independent valuation.
There's a scandal coming!