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Investors warn of ‘rot in private equity’ as funds come up with circular deals

Private equity firms are increasingly using “continuation vehicles” to sell companies to themselves, booking paper gains amid a backlog of unsold businesses. This strategy allows firms to wait for better market conditions, but investors worry about questionable valuations and unrealistic projections, as exemplified by the bankruptcies of Wheel Pros and United Site Services.

Source :- Markets-Economic Times Read More

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