Randy Schwimmer | Source | Vice Chairman, Co-Head of Senior Lending at Churchill Asset Management

Higher prices paid to buy the original portfolio company are making it tough for private equity managers to achieve the returns they need to earn their share of profits when they exit the investment.

Add it all up, and maybe investors are still being too complacent.

You can’t always chase credits expecting that the economy will continue to grow and that everything is going to be great. We know at some point it won’t be.