Beware the private equity echo chamber

Beware the private equity echo chamber

This article raises 3 key issues related to private equity – 1) when there is a failed IPO do the PEs mark down the private valuation on the assumption that failed IPO implies that private value is too high?, 2) what is the process to ensure private sales and/or swaps are properly valued and arm’s length and 3) is there adequate transparency in private valuations when reporting returns.

https://www.afr.com/companies/financial-services/beware-the-private-equity-echo-chamber-20191027-p534md

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.