The American Private Equity Industry After the Crisis: Towards Reshaping and Maturity

The American private equity industry has been badly hurt by the financial crisis. After a short period of exuberant boom, it collapsed abruptly. In the aftermath, it has to face three major challenges. Firstly, the shrinkage of activity is such that many general partners may have to quit the market; secondly, investors in private equity funds are taking advantage of this situation to enforce a better governance and to cut the rent of the GP and thirdly, the entrance of the industry in the regulated area will force it to act in a more transparent way. For all, these reasons, the shape of the American private equity will certainly deeply change and evolve towards a more standardized operating mode.