The Perverse Incentives for Private Equity and Venture Capital

New research from Bloomberg Intelligence suggests private markets have become a victim of their own success. Analysts expect institutional investment in private equity and venture capital to cool off as restructuring markdown, slowing dry powder for deals and rising interest rates force a re-evaluation of risk. Silicon Valley firm Eclipse raised $1.2 billion for two new funds dedicated to backing startups that are trying to modernize physical industries.