Andrea Auerbach News Today

Five major alternative-asset managers delivered more than $55 billion from cashing out private equity bets last year, a 49 per cent drop since 2021.

'Much like covid variants, 2023’s challenges will evolve and expand as we head into 2024, and some might even abate.'

(Bloomberg) -- Investors with money stranded in private equity funds are weighing an expensive solution: borrowing against their stakes, sometimes at double-digit interest rates, until the market for their holdings turns around.Most Read from BloombergPakistan Rupee Set to Become Top Performing Currency Globally UAW Aims For At Least 30% Wage Bump to Woo New MembersBiden Impeachment Hearing Heavy on Politics, Light on SubstanceTop Chinese Scientist Claims India Moon Landing Nowhere Near South Po

These newly popular loans can add “leverage on leverage,” says Cambridge’s Andrea Auerbach.

“It’s gone from a conversation that you had to actively pursue with GPs to a conversation that they actively want to have,” says NorthLeaf Capital’s Matt Shafer.

From Bloomberg: For years private equity firms had a simple way to keep investors happy: sell assets and share the proceeds. As the golden era of easy dealmaking and cheap debt ends, they're having to try different approaches.

Executives at one financial advisory firm said the firm has been flooded with calls from funds asking about strategies that might prop up returns and capital.

Letters to the editor

Dealmakers are getting back to work. Yet they will struggle to recapture past glories | Finance & economics

Private equity titans including KKR & Co. and Thoma Bravo pursued unorthodox paths to dealmaking this year in response to a challenging environment likely to persist in 2023.