Famously bearish investor Jeremy Grantham of Boston's Grantham Mayo Van Otterloo has been writing a lot about the future of private equity lately. Anyone familiar with Grantham's point of view can guess what he predicts: Big trouble.
Grantham thinks the end of easy money and a squeeze on corporate profit margins will clobber private equity firms and their deals, writing those sentiments in today's Financial Times. "With or without a credit crisis, their geese are cooked," Grantham writes. You can read his entire article here.
Last month, Grantham wrote even more expansively on this subject on GMO's own website. You can read that piece, "The Blackstone Peak and the Turning of the Worms," here (registration required).