The Volatility of Private Equity

Private equity has become so popular because of this thing that we talked about in terms of them not having to mark to market and the volatility is not in the portfolio. But I do believe that you've got willing buyers and willing sellers in this game here as allocators and LPs don't want to show volatile returns to their bosses either. And I think that most of the returns in these portfolios is predicated on very cheap debt, which frankly your eyes see as a fact of life going forward for much longer.