Cooperman warns private equity is a scam: Bloomberg

Leon Cooperman, the legendary hedge fund manager, said low interest rates that have fueled private equity returns won’t last, Bloomberg is reporting. Cooperman, CEO of Omega Advisors Inc, made the comments at an event hosted by the New York Alternative Investment Roundtable, the story said. The CEO said he thought private equity was a scam but then backtracked and said the high fees and lengthy lock-ups didn’t appeal to him, Bloomberg said. Declining interest rates are the main reason LBOs have generated high exit multiples in the last decade, Cooperman said in the story.