Are private equity blowouts good for investors?

Cracks beginning to show 'on several fronts'

There is growing evidence that private equity markets are beginning to overheat after several high-profile IPO flops.

Investors in stocks should pay attention because private funding troubles are also a very public market affair. In recent months, privately funded companies have discovered that public equity markets will not give them a blank cheque. Mundy's Moment: The rise of private equity WeWork's valuation plummeted from $47bn in early 2019 to $8bn in its bailout by SoftBank this week, after its initial public offering was aborted because of concern about huge losses and its corporate structure. Shares in Uber and Lyft have fallen 27% and 39%, respectively since their IPOs earlier this year. ...