Private equity firm Equity Group Investments (EGI) has experienced a loss due to the recent sale of a Lincoln Park condo by one of its top executives. The condo was sold for about 30% less than the executive had paid for it 16 years ago. This has raised questions about the potential risks of private equity investments and the losses that can result from them.
Ike, the former top executive of EGI, resigned from his position last week during a meeting of Blackstone's tactical opportunities fund investors held in New York. His resignation came after the sale of the condo for a much lower price than he had paid for it.
The sale has brought to light concerns about the risks associated with private equity investments. Blackstone Group LP (NYSE:BX), the world's largest private equity firm, is set to raise as much as $20 billion to make investments from its new Global Private Equity Fund. This fund is expected to invest in a variety of sectors, including healthcare, real estate, and technology.
Los Angeles-based real estate investment firm The BLVD Group has opened its doors to investors looking to make private equity investments. The firm is focused on investments in healthcare, real estate, and technology. It is important to note that private equity investments can be risky and can potentially result in losses.
The third key takeaway is about the risks involved in financing and debt. The risk of owning a property or being a part of an investment group is that the market may not perform as expected, or the investments may not be wise. Warburg has approached a number of Chinese investors including local banks and private equity firms with the idea of investing in the country. The U.S. private equity firm plans to primarily focus on the country's healthcare, technology, and real estate sectors.
With experience investing in middle market private debt dating back to 1998, the Private Credit Group has invested over $20 billion across a variety of industries. This group has attempted to minimize risk by investing in a diversified group of assets.
Lisa Sieg, a well-known figure in the impact investing sector, has joined the board of Barings’ diversified alternative equity team. She is responsible for originating and underwriting funds and co-investments globally. She has over 30 years of impact investing expertise and is currently Impact Chairperson at Apollo Global Management. Lisa joins two other members of Barings’ diversified alternative equity team in providing advice and guidance to investors.
In conclusion, the sale of the Lincoln Park condo by a former top executive of Equity Group Investments has brought to light the potential risks associated with private equity investments. Investors should be aware that private equity investments can be risky and can potentially result in losses.