Buyout CEO Says Secondaries are Preventing Private Equity Crash

The CEO of a private equity firm backed by a group of ultra-wealthy European families gave a stark warning on the industry, saying only the booming so-called secondaries market is rescuing it from a huge downturn.

Jean-Marie Laurent Josi, head of Brussels-based Cobepa, said the long period of low interest rates had made buyout firms less discriminating, and that the industry now needs to refocus on better investments and returns.