Sixth Street Says Costly Past Deals Hurt Private Equity (1)

Private equity investors have paid high prices for assets in the past, which is now a problem, said Sixth Street Partners’ co-chief investment officer Julian Salisbury.

While many investors had hoped that a combination of growth and falling interest rates would create good conditions for asset sales, that set-up has not materialized, Salisbury said, speaking to Bloomberg’s Dani Burger at the SuperReturn private capital conference in Berlin.

“You have frankly a lot of bad vintage assets,” said Salisbury, noting that investors in private equity funds are applying “incredible pressure” to have their money returned.

Private credit, which he ...