Private equity investor warns of harsh future
Date: November 20, 2008
The head of Europe’s biggest investor in private equity on Wednesday warned that the industry faced a “very harsh adjustment” if the economy suffered a prolonged slowdown and called for the fees it charges to be adjusted accordingly. Wim Borgdorff, head of fund investments at Alpinvest, which has invested €40bn ($50.3bn) in private equity on behalf of Dutch pension funds, said: “If you assume an extended downturn, the ability of this industry to generate returns will be much more limited.
For the whole wave of investors who have been running into private equity investments as the next best thing since sliced bread, this will now have to be fundamentally revised,” he said.
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Source: Financial Times
