Private equity’s best days are over, says Egyptian billionaire Nassef Sawiris

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According to Egyptian industrialist and billionaire investor NASEF Souris, the private equity industry has reached the top and faces a huge challenge in selling trillion dollars.

Investor Sawris said some of his fate for funding in multiple bayout companies said he and others who were behind the private equity fund had been disappointed with the lack of distribution in recent years. Companies have struggled to get out of investment in a post-Pandemic recession on preliminary public offers.

“Private Equity has seen his best days … they can’t quit. The exit is so hard,” Souris told the Financial Times.

“[Investors] So disappointed. They are telling them [buyout firms]: ‘I haven’t seen any return, you have not given any cash back to me in the last five, six years. “

Souris took a special goal of using “continuity fund” to recycle the capital – a technique through which Equity Groups, instead of selling any assets to another owner or publicly listed it, take the asset to a new fund where they still maintain control.

“Consistency Fund is the biggest scandal so far because you say ‘I can’t sell business, I’m going to liver it again’,” said Saoris.

According to a report by the investment bank Holihan man, continuity vehicles have become increasingly popular in recent years, the record has increased by about 50 percent to hit $ 76 billion last year.

Comments have come as Souris is overseeing his Dutch-list chemicals and fertilizer OCI’s separation.

Groups in September Agrees the fourth large settlementTotal income from his asset sale brings $ 11.6 billion from the deals that were hit with trade buyers than all the purchase shops. It has now sold most of its assets, including its global methane business, fertilizer holdings and a low-carbon ammonia project in Texas.

The OCI has used these sales to refund the shareholders in cash. With the end of this week, it has distributed .4 6.4bn in the last four years, it has paid up to $ 1 billion expected $ 1 billion after stopping its methane business sales.

Sauris said that the market turmoil that disrupted the dilomacing, was very lucky to have these settlements “time” due to the turn against investment in more sustainable resources.

Souris told the foot In an interview Last year that OCI could be turned into a cash shell company that tried to acquire different industries.

He said he was contacted about the purchase of dozens of companies, including money from the sale of his assets.

Many of them were owned by the private equity group in anticipation of departure, Saoris said he added that he did not find any of them as an interesting goal for any agreement.

“A year ago we looked at 70 different companies that wanted to be integrated with OCI because they were lever, and a list and everything available … all personal equity that couldn’t get any exit,” he said. “We said ‘Like, why are we there to solve someone else’s problem’?”

He also criticized the priority of private equity managers that they focused more on raising their capital vehicles than their portfolio companies’ operational performances.

“They are spending 90 percent of their time funding and 10 percent for business management,” he said. “They attend the board meeting, have a board dinner and they have a reason not to implement the plan.”

After several decades expand, resources under the management of the private equity industry Shrinks last year Consultant Bain & Co 2005 for the first time after the industry resources started tracking.

In June 2021, the resources of the industry fell by only 2 percent a year ago at $ 5.7TNTN, by the expression of market instability by the US tariff, the byout groups face more challenges. Slowly dilometingThe

Investment groups have had trouble selling resources after purchasing high evaluation in recent years, complicating their funding efforts.

Among the extensive challenges in the face of the private equity industry, Saoris said that parties are in the best position to succeed they are financial institutions as much as they have grown enough Blackstone To challenge the banks of the main NDING.

“The only guys in the future are boys who found a niche to be a competitor to the JPMorgan and the Bank of America.”