The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

EXPOSED! The shocking truth about private equity

As the supercharged returns of the boom years evaporate, investors are starting to ask tough questions about how – and if – private equity really works. Louise Bowman reports.

RETICENCE IS NOT an attribute widely valued among the financial elite. But it was a characteristic surprisingly prevalent among several private equity firms when Euromoney approached them over the summer to talk about their business. There seems to be something of a siege mentality in the industry these days – the product of far from complimentary press coverage of some of private equity’s less than stellar investment decisions – as well as observations from some quarters that "of all the asset classes that went parabolic from 2004 to 2008 private equity funds may have done the best Icarus impression". The excesses of the boom years have certainly removed the veneer of infallibility from the buyout industry and produced a legion of disgruntled investors that have seen some of their fail-safe investments turn to dust. But make no mistake; some people are still making an awful lot of money from this business. Industry leader KKR reported net income of $143.7 million for the first half of this year and Blackstone chief Steven Schwarzman, despite his firm recording a second-quarter loss up from $164.3

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree