FT News Briefing Is private equity actually worth it?
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Mar 7, 2024 Bayer's CEO has declared no new capital increases amidst investor criticism. In a deep dive, the Norwegian Sovereign Wealth Fund's potential pivot to private equity is scrutinized for its long-term returns. The podcast reveals the complexities and hidden costs of private equity, contrasting its performance against public markets. Additionally, Ghana's controversial anti-LGBT+ law could jeopardize crucial international funding, highlighting the influence of global politics on domestic legislation.
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Norway's Sovereign Wealth Fund Explores Private Equity
- Norway's sovereign wealth fund, worth $1.6 trillion, has grown through public investments, owning a bit of every major listed company.
- It now seeks to expand into private equity, aiming for higher returns despite potential drawbacks.
Private Equity's Allure and Risks
- Private equity's appeal lies in potentially higher returns compared to public markets, attracting large investors like Norway's fund.
- However, high fees, opacity, and dependence on falling interest rates raise concerns about long-term viability.
Ghana's Anti-LGBT+ Law Threatens Funding
- Ghana faces economic challenges, including defaulting on external debt and high inflation, relying on funding from institutions like the World Bank.
- A new anti-LGBT+ law may jeopardize this funding, raising concerns about the law's economic impact.