Roger Altman of Evercore doesn’t think the current environment is, “conducive to equity investing.”  IRRs will be declining.  He adheres to the opinion that the last 15 years was abnormal for interest rates, and we will be higher for longer.

If you look at medium and long-term rates, the path of Fed policy, fiscal policy and the geopolitical landscape, it’s not a good environment for equities.  We are incentivized right now to invest in fixed income.  Becky Quick adds that some over-levered corporate structures still need to be “flushed out” at these higher rates.  Mr. Altman says 45% of transactions over the last year were financial sponsored.  The returns on these deals will be lower with the marginal dollar staying away.  Additionally, the relentless growth of China is over.