Dry Powder: The Private Equity Podcast
The returns to the private equity industry, and buyouts in particular, have been so attractive for so long that fund-raising has run almost as if it were on an automatic cycle. You need more capital, you go and get it, you return that capital to the limited partners, and they recycle it back into the industry—lather, rinse, repeat.
We’re now in a severely capital-constrained environment. When you think about fund-raising being off by 30% this year, and you think about there being $3 of demand for every dollar of supply of capital, it’s clear the game has changed, and not just for a quarter or two.
Today on the show, I talk about how to fund-raise in these challenging times.