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Private Equity Faces ‘Crisis of Value’ Over Inflated Prices

  • Decade of low interest rates has driven up asset valuations
  • Looming recession creates opportunity, says Apollo’s Kleinman
Pedestrians in front of the Nasdaq MarketSite in New York. 

Pedestrians in front of the Nasdaq MarketSite in New York. 

Photographer: Michael Nagle/Bloomberg
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Private owners of assets face a “crisis of value”, after years of prices being driven higher by rock-bottom interest rates, according to two senior private equity figures.

“Right now in the private markets it has been a crisis of value,” Gabriel Caillaux, head of General Atlantic’s business in EMEA, said in a Bloomberg TV interview at the SuperReturn conference for investors in Berlin. “The excesses happened because valuations ran up and you had a whole new set of actors that came in who made the deal cycle a little bit too accelerated.”