Welcome to the twenty-third Pari Passu newsletter,

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Today, we will learn more about:

1. 2023 Bain Private Equity Report

2. Invest Like the Best with David Einhorn - Founder of Greenlight Capital

2023 Bain Private Equity Report

Every year, the consulting firm Bain publishes a private equity report which is widely known as one of the best pieces of information out there on the state of the industry. You can find here the PDF and the webinar links. Below you will find my notes and summary of the report, but I believe that everyone will learn a lot from watching the webinar (especially incoming first-year analysts about to start interviewing for private equity roles). Every graph and metric below is taken from the above report and webinar.

The year 2022 was a tale of two halves, a strong first half and a much weaker second half. A key transition moment was the Fed's decision to raise rates by 75 basis points in June 2022. Other reasons behind the weaker second half of the year are a series of events that we rarely see at the same time which lead to increased uncertainty in the market. In particular, inflation is something that most of the industry professionals working in private equity have never worked with, given the low inflationary environment we have seen for the last 40 years.

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