Mundy's Moment: The rise of private equity

Making good use of the asset class

No doubt attracted by the historical performance, passive funds have increased allocation to private equity in recent years.

Consequently, there are numerous mentions of a 'private equity wall of money' in the financial press.  It is hard to know whether private equity investors truly are investment gods. Some studies suggest their long-term returns could have been generated by investing in small-cap equities and using leverage.  However, that is irrelevant to where we are. Private equity has money to spend, relatively attractive equity valuations around the world of which to take advantage and incredibly low bond yields with which to leverage the deals. In days of old, private equity often received a po...