Private equity funds could soon be hit by the deleveraging and market volatility that have plagued hedge funds in recent weeks, according to The Financial Times.
“In the States, the private equity market is seen as an entirely natural progression within a pre-market system,” Andrew Lebus, managing partner at Pantheon Ventures, told The Financial Times. “There is a large pool of talent and private money that underlies it. There’s also a more interesting venture capital market. Culturally, it’s well supported. The buyout market is culturally accepted. In Europe and Asia, it’s a more recent phenomenon. Culturally, there have been some battlelines drawn in recent years between politicians and private equity. Below that, the market is developing quite nicely in Europe and is an accepted part of the piece. Asia for the most part is much less developed. That means the private sector is newer. Most of the private equity guys there aren’t sellers, they’re buyers.”