Permira Chief Sees Private Equity Shakeout With Rates High (1)

The private equity industry is facing a reckoning — with borrowing costs high, valuations for portfolio companies falling, and investors getting more demanding. But as far as Permira’s top boss is concerned, things are pretty good.

“It’s always when it feels most uncomfortable in our industry that the best risk-reward is created,” Permira managing partner Kurt Björklund said in a recent interview. A more difficult fundraising market and higher interest rates mean “the less performing teams get shaken out and disappear from the market,” he added.

Kurt Björklund

Source: Permira

Permira, which has about €80 billion ($86 billion) of committed capital across its ...