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The private equity industry in the new interest rate environment - Vimarsana News

The private equity industry in the new interest rate environment

As interest rates shift from a decades-long decline to hovering at the zero lower bound and potentially increasing significantly, the private equity industry will face new pressures. The inflow of capital to the asset class will decelerate, leading to an increased scrutiny of costs and an opportunity to shift bargaining power to limited partners. The first LTI Report argues

Source: voxeu.org
The Private Equity Industry in the New Interest Rate Environment - Vimarsana News

The Private Equity Industry in the New Interest Rate Environment

Private equity has been a big winner thanks to a long-term trend of falling interest rates. What happens in a less favorable environment?