Cognitive Dissonance Meets PE Fundraising
History shows that the best private equity returns come from investments made in economic downturns. The worse the fiscal shitstorm, the better the ROI. For example, Cambridge Associates reports that the best vintage for PE funds over the past two decades was 1991 -- a year that opened in the midst of a recession. The next-best vintage was 2001, which played host to a recession for eight months. Considering that 1991 and 2001 can't hold a candle to our current fiscal mess, PE funds raised in 2010 should eventually be considered on par with a 1996 Borolo (yes, I had to look that up). Except for one not-so-little problem: Precious few firms are able to raise funds right now.
1 February 2010•2 mins read
