Merryn Talks Money Permira's Kurt Björklund: Where Are We in the Private Equity Cycle?
Dec 15, 2025
Kurt Björklund, Executive Chairman at Permira, shares insights from his extensive career in private equity. He discusses the current reset in the private equity cycle post-COVID and the importance of true governance over mere leverage. Kurt explains how control buyouts drive long-term value creation and the impact of interest rates on investment strategies. He advises pension funds and long-horizon investors on navigating this landscape while cautioning retail investors about illiquidity risks. Topics include the rise of tech, shifts from public to private markets, and the role of top GPs.
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Private Equity Moves In Megacycles
- Private equity cycles are long megacycles driven by exuberance followed by shocks and valuation resets.
- The recent cycle reset was caused by COVID-era excesses and rates rising from near-zero to ~4%.
Control Governance Defines Private Equity
- True private equity is control buyout governance focused on selecting and transforming businesses.
- That governance plus alignment with management creates the alpha private equity aims to deliver.
Require Alignment Before Locking Capital
- Do expect strong alignment between GP and management via ownership and carried interest when investing in private equity.
- Do demand that this alignment justifies locking up your capital for years.