New Mountain Capital's CEO on Private Equity

The video discusses the current economic cycle compared to past cycles, focusing on private equity's evolution and its role in the economy. It highlights the impact of high interest rates, lessons from the Volcker era, and the growth of private equity from a niche to a dominant asset class. The video also covers institutional investors' responses, the importance of due diligence, and the market dynamics affecting private equity. Despite concerns of market saturation, private equity continues to outperform, driven by skilled business building and operational focus.

What was the interest rate on 10-year treasuries when the speaker started their career in 1981?

• 5.8%

• 10.8%

• 15.8%

• 20.8%

How has private equity performed in recent economic cycles according to the speaker?

• It has remained stagnant.

• It has been the least preferred asset class.

• It has underperformed compared to other asset classes.

• It has outperformed other asset classes.

What is one reason for the growing share of private equity in investment portfolios?

• Other asset classes have outperformed.

• Private equity has underperformed.

• Other asset classes have underperformed.

• Private equity is shrinking.

What trend in private equity involves buying parts of a company to create a new entity?

• Joint ventures

• Mergers

• Acquisitions

• Carve-outs

What is a concern mentioned about the current state of the private equity market?

• It is not growing.

• It is too small.

• It is becoming too frothy.

• It lacks skilled players.