Is Private Equity Cooked?

The author argues that the private equity tech buyout model is facing serious structural stress due to over-leveraged vintages, slowing software growth, and high interest rates. In contrast to the slow-and-steady buyout playbook, the author contends that venture capital thrives in uncertainty and benefits from power-law outcomes driven by major technological shifts. Furthermore, the piece suggests that private equity valuations and continuation funds may mask underlying distress compared to venture capital's approach of marking assets down. Open article →