Deals

Leon Cooperman Warns Private Equity Is a Risky Bet Fueled by Low Interest Rates

Competition among buyout firms grows as rates set to rise
Founder of Omega Advisors spoke at an event in New York

Leon Cooperman, chief executive officer of Omega Advisors Inc., speaks during an interview in New York, U.S., on Tuesday, Oct. 11, 2016. Cooperman, the hedge-fund manager accused of insider trading, said Tuesday that his Omega Advisors Inc. will continue investing money for clients even as its assets have dropped to $4 billion.Photographer: Christopher Goodney

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By Katia Porzecanski

September 11, 2019 at 2:37 PM UTC

Updated on

September 11, 2019 at 4:35 PM UTC

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Legendary hedge fund manager Leon Cooperman took a shot at the private equity industry, saying low interest rates that have fueled its returns won’t last.

“I think it’s a scam personally,” Cooperman said Wednesday at an event hosted by the New York Alternative Investment Roundtable. With interest rates likely to rise over the next few years, the “timing is wrong.”