A SHIFT in the private equity (PE) industry is benefiting the strongest firms while forcing others to make concessions to attract new money. Investors in private equity funds, typically pension plans and other institutions that agree to lock away their capital for as long as a decade, are receiving a flood of cash back, thanks to the soaring stock market, low interest rates and other factors that are helping private equity managers reap profit from the companies they own. Those investors are ploughing much of that cash back into the industry, emboldening them to be choosy and bargain for better terms with a range of funds.
The dynamic is leading to more robust negotiations between private equity...
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