What Is the Impact of Rising Interest Rates on Private Equity Investments? | Abdulmohsin Al Omran in an Interview with Al Arabiya Business

In a recent interview with Al Arabiya Business, Abdulmohsin Al Omran, Founder and CEO of The Family Office, discussed the impact of high interest rates on private equity investments and the implications on private company valuations. Below are the highlights of the interview:

Mar 14, 2024|Management Insights- 1 min

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  • High interest rates will force many private equity firms to improve their performance to offset debt burdens.

  • The value of public companies decreases with rising interest rates, while the value of private companies may not be immediately affected.

  • Continued profit growth and improved margins can lead to long-term company growth despite short-term valuation challenges.

  • The increasing number of companies that have not been exited may lead to mergers and acquisitions amid difficulties faced by some companies.

  • Private equity exits often involve family-owned companies seeking liquidity, while the global Bain report focuses on companies managed by financial groups.

Watch the full interview above.


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