Private Equity’s Quiet Crisis!
Patrick Boyle On Finance
Patrick Boyle
4.9 • 308 Ratings
🗓️ 19 October 2025
⏱️ 25 minutes
🧾️ Download transcript
Summary
Private equity has long promised smooth returns, operational excellence, and sophisticated diversification. But behind the pitch decks and performance charts lies a growing crisis. In this video, we explore:🔹 Why private equity firms are struggling to exit investments🔹 The illusion of stability created by stale pricing🔹 The role of leverage in driving returns — and fragility🔹 The push into 401(k)s and what it means for retail investors🔹 The rise of continuation funds, NAV loans, and other liquidity maneuvers🔹 The social and regulatory backlash against PE roll-up strategies🔹 What Bain, Buffett, and Cliff Asness really think about the modelFrom inflated IRRs to collapsing portfolio companies, the cracks are starting to show. Is private equity still a smart bet — or just a sophisticated shell game?
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Transcript
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| 0:52.8 | This August, President Trump signed an executive order allowing private |
| 0:57.4 | equity firms to tap into America's 401k system. The stated goal was to democratise access, to stop |
| 1:05.3 | babying smaller investors and to let them play in the same sandbox as pension funds and sovereign wealth fund managers. |
| 1:12.6 | Nothing says democratization like handing your retirement savings to Apollo. |
| 1:18.6 | So why are the shares of publicly listed private equity firms underperforming the broader stock market so badly this year? |
| 1:25.6 | You'd expect a rally. Instead, the GLPE |
| 1:30.0 | index is down nearly 10% year to date, and it's even down slightly since the announcement |
| 1:36.8 | in early August. Apollo and Blue Owl are off more than 20% year to date. KKR, Aries and TPG are all in double-digit decline. |
| 1:49.0 | Blackstone is down too, with Carlisle and Three-I being outliers up more than the S&P. |
| 1:55.0 | It turns out that letting retail investors into the sandbox doesn't necessarily help if the sandbox is full |
| 2:02.8 | of broken toys. The Wall Street Journal points out that some of the underperformance might reflect |
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