Some Private Equity Firms Are Borrowing at as Much as 19%

Some Private Equity Firms Are Borrowing at as Much as 19%

Assessment

Interactive Video

Business

University

Hard

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The video discusses the challenges in fundraising for private equity firms, focusing on the types of loans they are raising, such as management company loans. It highlights the risks and leverage involved, the stigma around this financing, and the role of lenders like Carlyle and Aries. The discussion also covers market expectations, high borrowing rates, and systemic concerns in the financial system due to increasing deal sizes and debt levels.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns might arise from businesses taking on too much debt?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

In what way is the current borrowing situation likened to an energy drink?

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