Rethinking Private Equity in Challenging Markets

The record returns that PE funds achieved in the last decade by capturing value from cheap capital and healthy equity markets are receding. IPOs and exits are becoming more challenging, pushing PE firms to adopt creative solutions to maintain cashflow, delay asset sales, and manage shifts in valuation fundamentals.

Key Takeaways:

• PE firms face challenges with IPOs and exits in today's market.

• Creative financing structures are being used to maintain cash flow.

• Valuation risks are increasing with new financial strategies.

• Innovation is driving PE firms to adapt and evolve.

• PE market consolidation and new governance structures are likely.

‘A New PE Playbook: Economic Headwinds Spur Private Equity Evolution’ is published by Clayton Utz in partnership with The Action Exchange.

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