Now, public market investors seem to have awoken to the risks of buying into certain IPOs. The Problem with Having Too Much MoneyOver the past decade, private equity investors seemed to have more capital than they know what to do with. Too often, the big private equity investors are only bidding against themselves when pricing the later rounds of capital for their unicorns. Have you noticed how few of the private market unicorns have been purchased by their most natural buyers? Consequently, as much as bidding up the value of the unicorns to dizzying heights drove private equity returns higher on paper in the near term, I believe this profligate allocation of capital could ultimately crush many private equity funds.

Source: Forbes October 07, 2019 13:18 UTC