Economics

The intersection of private equity (PE) and environmental, social, and governance (ESG) principles presents both opportunities and challenges. As institutional investors increasingly demand adherence to sustainable practices, private equity firms must navigate a complex landscape of regulatory expectations, market dynamics, and ethical imperatives. The ESG Imperative in PE Private equity traditionally operates on a model … Read more

Leveraged buyouts (LBOs) rely heavily on debt financing to acquire target companies, with the expectation that operational improvements and financial engineering will generate returns that exceed the cost of debt. However, rising interest rates pose significant challenges to this model. As central banks tighten monetary policy to combat inflation, private equity (PE) firms must navigate … Read more