Private equity groups are facing increased scrutiny from investors over their tactics for returning capital, according to a report by the Financial Times. Investors are concerned that the use of net asset value (NAV) and margin loans relies too heavily on financial engineering rather than underlying portfolio performance. The article highlights the need for greater transparency and accountability in the private equity sector to ensure that the substantial amounts of capital it wields are used to finance a sustainable economy. Another report by the Financial Times focuses on the use of margin loans as a financial engineering tactic by private equity firms to generate cash. The article discusses the rising scrutiny from investors, known as limited partners (LPs), into this practice. The article also mentions a separate report by Breakingviews, which suggests that Apollo Global Management may face challenges related to a leveraged buyout (LBO) involving a noodle company.
Breakingviews - Apollo may get noodle LBO thrown back in its face https://t.co/NRHkcBwcPv
NAV loans Private equity groups face investor scrutiny over tactics for returning capital https://t.co/sAzLMdKEjP
Can private equity meet public responsibilities? The sums of capital the sector wields could be critical to financing a sustainable economy, but greater transparency and accountability are needed to ensure this happens via @FT #PrivateEquity #ESG https://t.co/DdsC87qulz
Our story on another private equity financial engineering tactic to conjure cash: Margin Loans. ..And the rising scrutiny from LPs into a wave of borrowing to bridge to a “better world.” @william_louch and myself. https://t.co/wggjDSKla8 https://t.co/oPyyju7UCX
Private equity groups face investor scrutiny over tactics for returning capital LPs worry that use of NAV and margin loans relies on financial engineering rather underlying portfolio performance via @AntoineGara @william_louch @FT #PrivateEquity https://t.co/UAs1jEoYsU
Private equity groups face investor scrutiny over tactics for returning capital https://t.co/SvWqjBysCy via @ft