Key Takeaways
- • Jason Safran, CIO of Texas Christian University, said private equity fund managers are becoming more willing to mark down holdings after several years of "over-marked" portfolios, according to Bloomberg.
- • Safran said valuations were particularly inflated from 2022 through 2024, and that managers are now selling holdings below their marks or moving them into continuation vehicles as investor patience wears thin.
- • Safran oversees TCU's $3 billion endowment and made the remarks on a panel at the Bloomberg Invest Dallas conference.
- • Related coverage describes a broader PE valuation reset, with pressure on managers to show credible exit paths to returns.
Summary
Jason Safran, chief investment officer at Texas Christian University, said private equity fund managers have become more willing to mark down their holdings after several years in which portfolios were "way over-marked," according to Bloomberg. Speaking on a panel at the Bloomberg Invest Dallas conference, Safran said valuations were particularly inflated from 2022 through 2024. Safran oversees the school's $3 billion endowment.
According to Safran, investor patience is now wearing thin, and as a result managers are willing to sell holdings below their carrying marks or roll them into continuation vehicles. Other coverage describes the same adjustment, with managers facing pressure to demonstrate credible exit paths for their portfolio companies.
The reset is part of a broader debate over private equity valuations. Some reporting frames the markdowns as a correction after years of inflated asset marks, and it comes as the industry continues to hold a large number of unsold businesses. Limited availability of the full article means the detailed figures and additional commentary from the panel could not be independently confirmed.
According to Safran, investor patience is now wearing thin, and as a result managers are willing to sell holdings below their carrying marks or roll them into continuation vehicles. Other coverage describes the same adjustment, with managers facing pressure to demonstrate credible exit paths for their portfolio companies.
The reset is part of a broader debate over private equity valuations. Some reporting frames the markdowns as a correction after years of inflated asset marks, and it comes as the industry continues to hold a large number of unsold businesses. Limited availability of the full article means the detailed figures and additional commentary from the panel could not be independently confirmed.
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