No Exit? Private Equity Resorts To Secondary Market

When Blackstone pulled two of its investments out of planned listings last week due to a frozen IPO market, it was a potent symbol of the difficulties which private equity (PE) has had in adjusting to the crisis. In particular, it symbolized the industry's inability to exit its investments in conditions of adverse market sentiment. This has further consequences in terms of private equity fundraising: in the absence of exits, investors in private equity are not being rewarded with any returns, and hence are in no mood to participate in new rounds of fundraising by PE. This is forcing PE

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