Private Equity Wire: What is Your Biggest Fear for 2020, as a PE Investor?

Jeff Diehl spoke with Private Equity Wire to discuss what he believes will be a top concern among PE investors this year: a correction in valuation multiples. In the report, Diehl explains how rising valuation multiples have provided a tailwind for returns amid increasingly common underachievement of EBITDA. He states, “While this [correction] would be a welcome development for buying companies, it would turn a tailwind for recent PE returns into a headwind and would expose the PE firms that have posted good returns despite having a number of underachieving companies in their portfolio.”