There’s an old joke in private equity: 60 is the new 30. At least that’s how it's long played out on Wall Street. Indeed, this powerful corner of the finance world was for decades dominated by the founders who practically invented the field—then hung on atop their companies for as long as they possibly could. Finally, that’s changing—or at least starting to. There is not only a crop of new leaders at the biggest firms, there's a wave of smaller shops finding their place in the power structure.
And while the rise in interest rates and dropoff in deal flow has squeezed PE companies over the past year, the sector is still massive. Private equity, which refers to firms that use outside capital to invest in companies, controls nearly $8 trillion in assets globally, including $4.1 trillion in the U.S., according to data from Preqin. Private equity dry powder, which refers to capital available to invest, stood at $1.5 trillion in July, excluding venture capital, Preqin said.
