Private Equity Fund Wipeout: From $2 Billion to Zero

Private Equity Wipeout: From $2B to Zero. Applying leverage to a levered portfolio of investments in the oil and gas industry results in a disaster. #privateequity #investing #finance #oilandgas

[@simfinso858]

I simply love Your short videos... Debt is Risky even though it is Cheaper than the Equity. when it's Recession it is Good to buy with Equity.. because there is no Repayment burdens..

[@ASimpleModel]

thank you! equity definitely gives you a more flexible time horizon!

[@adityaraj-jr8ph]

Great video, keep it up

[@ASimpleModel]

Thanks!

[@basheyev]

but if they didnt exit from portfolio companies, then PE fund is ok now when oil prices are high?

[@ASimpleModel]

hi Bolat! Great question, had the investments been made without any leverage it would have provided a longer runway, but credit agreements have covenants that must be maintained. When a company defaults, the lenders can take action to recover their funds.