Diegnan and Perry on the Search for Fresh Capital

The video discusses the dramatic changes in the business environment since late 2021, highlighting increased costs and disruptions in supply chains and labor markets. It explores the role of financial journalism in navigating crises and examines historical market trends for future insights. The video also delves into the pressures faced by private equity funds due to over-allocations and reduced distributions.

What are some of the challenges faced by public companies in the current business environment?

• Abundant labor supply

• Decreased cost of capital

• Stable supply chains

• Increased cost of doing business

How does the role of a financial journalist differ from that of a corporate executive?

• Journalists make investment decisions

• Journalists manage company operations

• Journalists ask questions without needing to provide answers

• Journalists provide solutions to business problems

Why is the current market situation considered unprecedented?

• It follows a predictable pattern

• It has never been experienced before

• It mirrors the conditions of the 1980s

• It is similar to the 2009 market conditions

What is the 'denominator effect' in the context of private equity?

• A strategy to diversify investment portfolios

• A method to calculate returns on investment

• An increase in public market values leading to lower private equity allocations

• A decrease in public market values leading to higher private equity allocations

What challenge do large investors face when wanting to commit to new private equity funds?

• Lack of available capital

• Excessive capital availability

• Low allocation targets

• High distribution rates