Navigating Challenges in Private Equity Sponsored Companies

The chapter explores the health of average private equity sponsored companies in the US, emphasizing the impact of economic growth and challenges faced due to overcapitalization. It delves into strategies for maintaining margins in an inflationary environment and the risks associated with compressed cash flow yields. The conversation also addresses the vulnerabilities of American higher education to private equity investments, risks in capital structure allocations, and opportunities present in distressed sectors like growth in the LP universe and commercial real estate.