(Charlotte, NC – December 17, 2019)
Source: Morgan Stanley (*1H ’19)
‘Peak’ Private Equity Fears Are Spreading Across Pension World
(Bloomberg) While the average private equity buyout multiple has been north of 10x since 2015, 2019 marks the first year that multiples have exceeded 11x. Rising valuations have been accompanied by increased levels of dry powder. There is more dry powder today ($1.18T) than was invested in private equity assets in 2011 ($1.17T). These staggering statistics are leading some pension funds to wonder if private equity has reached its peak.
Why Entrepreneurs Don’t Learn From Their Mistakes
(Wall Street Journal) There is an old adage that people learn best from their mistakes. Nowhere is this belief more prevalent than in the startup world where entrepreneurs are told to “fail fast” so they can learn valuable lessons and apply them to their next venture. Recent research has debunked this theory, revealing that the exact opposite is true. Fail once and you’re more likely to fail again.
Against Expectations, Private Debt Fundraising Saw a Decline in 2019
(Pitchbook) Due to the aforementioned investor concerns surrounding private equity valuations, many anticipated 2019 to be a big year for private debt. This has not been the case, as both fund counts and combined commitments were below their 2018 levels. Fund counts in particular were lower than expected, with only 73 closes compared to 107 last year and 149 in 2017.
Stephen Schwarzmann Doesn’t Stop: An Exclusive Q&A with Blackstone’s Chief Executive
(Pitchbook) Blackstone’s founder and CEO recently sat down with Pitchbook to discuss the career defining moments that are detailed in his just-released memoir. It traces his meteoric rise from mowing lawns in a Philadelphia suburb to becoming king of a global alternative investment empire worth $554 billion.