EQT Chief Warns Private Equity’s Pursuit of Retail Cash Is Risky

EQT AB’s chief cautioned the industry against chasing money from individual investors, warning that aggressive fundraising could backfire and damage credibility.

Per Franzen, chief executive officer of the world’s second-largest private equity firm by capital raised, said his biggest concern is that asset growth may be prioritized over substance, with retail and wealth products rolled out without supporting investments.

“If I had a magic wand, I would use that and make sure that every larger player in the private markets industry pursues that opportunity in a long-term responsible way,” Franzen said an interview last month.

As some institutional ...