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Clock ticking for private equity firms to spend through tougher times

The shift is profound for an asset class that for more than a decade was flooded with cash from investors hunting yield in a low-interest rate environment

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Stocks (Source: Bloomberg)

Jan-Henrik Förster | Bloomberg

5 min read Last Updated : Oct 31 2022 | 4:35 PM IST

Time is ticking away for private equity firms to get ready for their next wave of deals.

Rising interest rates, inflation and recession risks have eroded consumer confidence and left buyout firms facing a new reality of higher financing costs and potentially lower returns. None of which changes the fact there’s more than $1 trillion sitting in their funds that needs to be spent.

“People say there’s no financing available but then our clients are telling us ‘we have a big fund that we have to deploy,” said Umberto Giacometti, co-head of financial sponsors in Europe, the Middle East and

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