this post was submitted on 06 Apr 2025
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Finance

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Big investors look to sell out of private equity after market rout (www.ft.com)
submitted 2 months ago by misk@sopuli.xyz to c/finance@beehaw.org
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Archive: https://archive.is/2025.04.06-200300/https://www.ft.com/content/b7c5aea6-c429-4917-bf35-a4f1b3159f85

Large institutional investors are studying options to shed stakes in illiquid private equity funds after the rout in global financial markets pummelled their portfolios, according to top private capital advisers.

The calls by pensions and endowments seeking ways to exit their investments, probably at discounts to their stated value, is a bad sign for the $4tn buyout industry. Industry giants such as Blackstone, KKR and Carlyle all saw their stocks plunge by about a fifth in value last week.

The race to find liquidity signals that investors in private equity funds increasingly expect to receive few cash profits from their holdings this year and may face liquidity pressures that cause them to further retrench from making new investments. Last year, the private equity industry’s assets dropped for the first time in decades, according to Bain & Co, as fundraising plunged 23 per cent from 2023. (…)

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[–] megopie@beehaw.org 3 points 2 months ago* (last edited 2 months ago)

Oh boy, can’t wait for them to start selling off all those houses they’ve been buying so they can get the cash they need to cover this and then crash the housing market.