Bob Faris shudders at the current state of the private equity sector. One of the pioneers of US leveraged buy-outs, and co-founder of the European buy-out scene with Sir Ronald Cohen in the early 1970s, Mr Faris has a 36-year perspective on the private equity industry. And he does not like the view.
"Greed is rampant at the moment and there are too many inexperienced people making major decisions," says Mr Faris.
"The disciplines of the business have gone as guys get rich from management fees alone. You need a balance between risk and reward in this business. But it is becoming a reward business only and the chances are things will start to unwind."
In 1971, when Mr Faris joined Alan Patric of Associates, the forerunner of Apax Partners, survival rather than enrichment was the aim of venture capitalists.
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