Peak Market? – The New York Times


Like any good private-equity investor, Carlyle has demonstrated a knack for buying when others are selling, and vice versa. It is instructive then that Carlyle, led by David Rubenstein, is embarking on its biggest quest for distressed assets at a time when tax-cut hopes are fanning Wall Street euphoria. The $2.5 billion fund is a good reminder that lofty valuations, an aging recovery and a chaotic new administration can produce bad outcomes.

The new vehicle dwarfs Carlyle’s 2011 distressed fund, a $700 million one. With rich pickings still available in the aftermath of the financial crisis, that vehicle has generated a 21 percent annualized return after accounting for fees — an impressive accomplishment given that 10-year Treasury yields traded narrowly around 2 percent for much of that period.

Today, rates are rising amid expectations that President Trump will stoke…



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