Carlyle: Era of Private Equity Profiting from Zero-Rate Valuation Multiple Inflation Is Over

John Redett, co-chairman and global head of private equity at Carlyle Group, said the era of private equity firms making money over the past 10 years simply from zero-rate-driven valuation multiple inflation is over, and they now need to create value for companies by committing substantial resources and capital in the traditional way to generate returns. He remains optimistic about private equity opportunities over the next 5 to 10 years and will focus on real economy development. The firm yesterday completed the sale of a European healthcare business, with returns achieved through company earnings growth of more than double rather than rising market valuations.