Day of reckoning could be coming for private equity #shorts

Private Equity Performance - The private equity industry peaked in Q2 2021, with US firms achieving quarterly returns of approximately 135% [1] - Rising borrowing costs, due to the Federal Reserve's actions in 2022, have made deals less attractive, impacting returns and profits for institutional investors [2] - A slowdown occurs as reduced asset sales and returns to investors lead to less capital for future deals [3] Limited Partners & Institutional Investor Sentiment - Limited partners, including pension funds and endowments, are reportedly frustrated with private equity performance [3][4] - Despite frustration, limited partners are hesitant to publicly criticize private equity due to its historical performance as a good asset class [4] - Limited partners prefer to wait and see how the situation develops [4]