Private equity has peaked, and it's about time

HOW DO I know we have reached peak private equity (PE)? Because it has become the primary villain of the US economy — responsible for the high cost of everything from housing to health care.

- Allison Schrager Bloomberg

Many of the criticisms are unfair, as the presence of PE investment is often a symptom rather than a cause of a struggling market or business. But the industry has gotten very large in recent years, and with lower returns, higher interest rates and changes in the way many large universities invest, it seems that PE has peaked.

To which I say: This isn't necessarily a bad thing. PE serves an important function, but as it has grown it has also become less successful, and some contraction could be just what it needs to get back on track.