Treasuries Above 5% Create a New Problem for Private Equity: Why Buy Risky Assets?

A 10-year Treasury yield above 5% is creating a fresh challenge for private equity firms: convincing investors to lock up capital when government bonds offer a meaningful return with far less risk and more liquidity.

“At a 5% risk-free rate, private equity has to work much harder to justify locking up capital for years,” Mark Spindel, senior advisor and partner at Pilot Wave Holdings, told Benzinga. READ MORE