Global private equity industry turns to "structured equity" financing to tackle $3.8 trillion asset exit dilemma
Faced with high interest rates and stalled asset sales, the global private equity industry is adopting "structured equity," a new financing tool. Through customized agreements with private equity giants like Apollo Global Management and Bain Capital, firms can return cash to investors without selling assets. Currently, global buyout funds hold approximately $3.8 trillion in unsold assets, with the average holding period extended to seven years, causing the distribution to paid-in capital (DPI) to fall to its lowest level since 2000 last year. This tool typically takes the form of preferred stock or convertible securities, offering private capital providers a mid-to-high annualized rate of return, and has spread from the US and Europe to Asia. Critics argue that this is an "expensive temporary solution" that does not address the fundamental exit dilemma, and merely recycles capital among the same institutional investors while generating additional fees.
Source:华尔街见闻 · Source Link
Disclaimer: This content reflects only the author’s personal views and does not constitute any investment or financial advice. If you discover any content that violates regulations,Click to Report
24H Trending
-
1
BlackRock Bitcoin ETF once reached a $100 billion milestone: the fastest ever, current AUM approximately $98.5 billion, annual revenue target $500 million
-
2
Understanding APENFT Token Issuance and NFT Circulation
-
3
Will SOL Coin Collapse? Can Solana Become the Next Ethereum?
-
4
Thailand's SEC opens consultations on Bitcoin and Ether ETF rules, including foreign custodian standards
-
5
US Treasury Secretary Bessent Reportedly Prepares Measures to Curb Rising Bond Yields
-
6
Analysis indicates that Walmart (WMT) saw a 5.1% year-over-year increase in Q2 revenue and a 2.6% rise in U.S. comparable store sales. However, given its P/E ratio of 38x and a dividend yield below 1%, investors are advised to hold off on buying for now.
-
7
KingData Platform Features and Analysis: One-Stop Blockchain Data Service
-
8
What is 4XB coin? Analyzing the current status and potential risks of the 4xBit project
-
9
BitDATA Exchange Token BDT: Multi-Entity and Token Analysis, and Scam Alert
-
10
Analog Devices (ADI) Q3 Revenue Soared 40% YoY, Net Income Doubled to $1.34 Billion; Q4 Revenue Guidance Implies Another 40% Growth
Markets Today
Recommended Reading








