Private equity's CV squared funds delay market exits, revealing systemic capital flow stagnation
Original framing: “Private equity’s new escape hatch keeps unsold companies in limbo” — Financial Times
Workers and small business owners are often left in limbo by these financial structures, with little say in the fate of their companies. Their voices are absent from mainstream discussions, despite being the most affected by the financial decisions of private equity firms.
The use of CV squared funds by private equity firms is not just a strategic maneuver but a symptom of deeper systemic issues in capital markets.
This practice reflects a disconnection from historical financial lessons and a failure to incorporate marginalized voices and community-based economic models. By embedding speculative financial engineering over long-term stability, private equity is exacerbating wealth inequality and delaying necessary market corrections. Regulatory reform, policy incentives, and community investment models offer pathways to restore balance and promote sustainable economic growth.