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Private equity faces existential crisis in US as unsold companies pile up (www.theguardian.com)

submitted 2 days ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Private equity firms and the companies they own employ over 13 million, from startups to rural hospitals and large retailers, but experts’ concerns of collapse are growing

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[–] pdxfed@lemmy.world 1 points 1 day ago

When your business model is "we can do this better than others -maxxed" your assumption is there will always be another sucker. 30 years of taking dumps and selling trash has others learning caution and not willing to buy on a hope and a dream. Suddenly when the suckers dry up business is challenging? You have no model.

Data point; I've only had 2-3 PE job conversations in the last 15 years and have had 2 in the last 2 months as I explore the market and both mention that the management Equity are "looking to exit" in the next 18 months. Everyone looking to be a "PE expert" type company and everyone forgetting we actually need companies run for the long-term; ratio of "experts" to actual doers is definitely too high.