[jyl]

My comment is from another angle.

Private equity (PE) funds do not have to mark to market, so they can show strong and steady growth in fund value based on their models, which appeals to investors who think they are getting return without risk. This works until it doesn’t and the funds have to show their true returns. As more investment money has gone into PE, the quality of the PE funds and their investments decline, which is masked by mark to model, until it isn’t.