Deals
Private Equity Poised to Face a Reckoning After Gilded Decade
- Apollo warned about nearly $1 billion in clawbacks after rout
- Market declines, recession could upend money-making industry
Photographer: John Taggart/Bloomberg
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A turning point has arrived for the private equity industry, whose velvet-rope deals and outsized returns defined the past decade’s era of ultra-wealth on Wall Street.
The jolt of the coronavirus pandemic, which halted most economic life in the U.S., has sent shockwaves through the industry, which in recent years infiltrated virtually every corner of the business world from real estate to hospitals, newspapers and restaurants.