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Buyout Firms in Denial About Valuations, Tikehau Co-Founder Says

Sept. 21, 2022, 12:28 PM

Tikehau Capital SCA co-founder Mathieu Chabran said buyout firms must face up to reality about deal valuations as interest rates skyrocket worldwide and expects the industry to see more consolidation.

“The market is in denial,” Chabran said in an interview Tuesday on the sidelines of the IPEM private equity conference in Cannes. “The buyout market has enjoyed very significant tailwinds which were mainly driven by free to cheap money.”

Central banks won’t give you a “get out of jail” card anymore, he said. The private equity asset class will have to go through a period of decreased returns if lower ...