FT News Briefing Private equity: from cutthroats to frenemies
Aug 16, 2022
Kenya's election results face a challenge amidst political turmoil. Iran distances itself from the attack on Salman Rushdie, while navigating tense international relations. Meanwhile, China takes action to stimulate its economy with a significant lending rate cut. The private equity landscape is shifting, as once-competitive firms now collaborate on groundbreaking deals, even as they face potential regulatory hurdles in an evolving financial environment.
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Private Equity Evolution
- Private equity firms, once cutthroat competitors, now cooperate and act as each other's customers.
- This interconnectedness creates repeat business and changes their behavior from solely winning deals to building long-term relationships.
Zendesk Acquisition
- Zendesk's acquisition by two private equity firms demonstrates this new cooperative approach.
- The firms worked together, highlighting the shift in private equity dynamics.
Expanded Role of Private Equity
- Private equity's role has expanded beyond buyouts to include lending and other financial activities.
- They manage vast sums, collectively owning more businesses than even large corporations like Walmart.