Private Equity Shops Bet on Rivals’ Funds as Deal Rut Persists
Buyout shops are buying slices of other firms’ investments.
Private equity firms have a new favorite bet.
Photographer: Eduardo Leal/BloombergWelcome to Going Private, Bloomberg’s twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we look at private equity’s new favorite bet and watered-down guidance for so-called shadow banks. Also, a startup turned rent payments into a multibillion-dollar venture. If you’re not already on our list, sign up here. Have feedback? Email us at goingprivate@bloomberg.net — Erin Fuchs
In the bygone era of cheap money, private equity firms snapped up entire portfolio companies and made a profit after they sold them or took them public. But once the Federal Reserve began a series of rate hikes in 2022, would-be buyers became loath to take out higher-interest loans to finance such transactions.