Deals
Private Equity's Diminishing Returns
Less leverage and the prospect of rising rates are going to make the firms' returns increasingly less attractive.
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Investors can’t get enough of private equity. According to research firm Preqin, private equity firms’ assets under management ballooned from $580 billion in 2000 to $2.4 trillion by June 2015 (the latest date for which numbers are available).
Private equity investing has become de rigueur for big money managers ever since The Yale Endowment made piles of money in the funds years ago -- making private equity a fixture for money managers trying to emulate Yale's model.