Private Equity Faces Scrutiny

The video discusses the challenges facing the private equity industry, particularly in light of the COVID-19 pandemic. It highlights how the conditions that previously drove high returns have changed, with elevated multiples, low interest rates, and economic slowdown posing new challenges. The discussion also covers potential regulatory actions on leverage limits and the implications for private equity and hedge funds. The video concludes by considering the role of government rescue financing and its impact on equity and general partners' earnings.

What are the potential consequences of lower leverage in new private equity deals?

What factors could lead regulators to impose limits on leverage in the private equity and hedge fund industries?