What Is the Impact of Rising Interest Rates on Private Equity Investments? | Abdulmohsin Al Omran in an Interview with Al Arabiya Business

• High interest rates will force many private equity firms to improve their performance to offset debt burdens.

• The value of public companies decreases with rising interest rates, while the value of private companies may not be immediately affected.

• Continued profit growth and improved margins can lead to long-term company growth despite short-term valuation challenges.

• The increasing number of companies that have not been exited may lead to mergers and acquisitions amid difficulties faced by some companies.

• Private equity exits often involve family-owned companies seeking liquidity, while the global Bain report focuses on companies managed by financial groups.

Watch the full interview above.