Private Equity

• typically have lower volatility than private equity - due to infrequent and self-determined valuations (no daily price like public markets)

• Investments in private startups
• Investments in Private Equity Funds
• Investments in non-public LLCs and partnerships

Massive Expansion After 2008 Financial Crisis

• Private Equity assets grew 7x after the 2018 Financial Crisis (circa 2020)
• Driven by desire for higher returns and lower volatility (thanks to infrequent asset valuations vs. public market real-time valuation)
• Resulted in private equity firms being more competitive and paying higher prices
• Debt levels have increased (higher EBITDA multiples) & loan covenants have decreased
• Banks have limited loans (too risky with high ration).  Private debt markets have taken over