PE Investors Temper Returns Expectations

Private equity investors hoping for outsized profits are facing an awkward truth – investment returns have shrunk and are unlikely to go back to their peak levels, Reuters reported. At private equity’s annual global gathering in Berlin this week, investors acknowledged that the asset class looks unlikely to revert to its bumper past payouts, weighed down by modest global economic prospects as well as an influx of funds into the sector creating increased competition for deals.