Reminds me of the saying: "Venture Capital starts with too many good ideas chasing too little money, and ends with too much money chasing too few good ideas."
if a legitimate large corporation is having trouble raising money, its a huge red flag.
Wow, debt looks super attractive.
When I first saw this @azlyrics comment was dead and I'm wondering what the fuzz is.
[0] https://www.thebalancemoney.com/list-of-junk-bond-etfs-12147...
theres a very real chance that 10% yield will spike further and downgraded
Not all LP commitments have the same durability.
It’s like leasing a building to a first time restaurant owner or a big public company doing restaurants and getting identical rent. One is more durable (and valuable) than the other. But it gets left out of cash flow.
Same with counts of dry powder.
it's also relevant that you can't just ask for capital back as an LP. it's committed to a fund. you can not commit to another one but the price of much greater returns in alt assets is much lower liquidity.
Also the fed finally stopped propping up valuations with QE, money is leaving the economy (about damn time).
FWIW VC/PE/some other private stuff isn't actually down yet at least not on paper. But this is bc they are not marked to market very often at all. The reason activity is still good is bc valuations are way down, like half in a lot of cases.