Asset Management

Five signs that we are in a private equity bubble

Private equity firms are sitting on more than $1tn of unspent cash, and many other indicators are flashing red

Looking poppy: private equity firms have raised over $1.1tn of unspent cash and are paying record prices for deals
Looking poppy: private equity firms have raised over $1.1tn of unspent cash and are paying record prices for deals Photo: Getty Images

Private equity firms amassed $1.14tn in uninvested capital — or dry powder — by the end of September, according to data povider Preqin.

This has led some industry experts to question whether the industry is in a bubble. Here are five reasons why it might be:

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