Jean-Marie Laurent Josi, CEO of Brussels-based private equity firm Cobepa, has warned that the private equity industry faces a potential downturn, with only the thriving secondaries market preventing a major correction, according to a report by Bloomberg.
Speaking in a rare interview, Josi said years of low interest rates encouraged less selective dealmaking, and the sector now needs to refocus on high-quality investments and strong returns. Rising financing costs, a scarcity of takeover targets, and challenges in exiting older deals have slowed distributions and made capital-raising more difficult for many buyout firms.
Cobepa, backed by ultra-wealthy European families and holding €5.1bn in assets with no debt, has continued to acquire and sell companies steadily, maintain dividend payments, and expand into the US market. The firm has completed two US investments this year, including a minority stake in accounting and tax adviser Sax, and fire-protection specialist Eagle Fire.
Josi also stressed that private equity is becoming increasingly difficult for new entrants, noting that credibility in the market is essential to gain access to deals. He criticised the industry’s shift toward volume-driven strategies and reliance on debt-financed distributions, arguing that this has come at the expense of pursuing higher-return, riskier investments.
Cobepa’s portfolio spans 21 European and US companies, with stakes ranging from limestone producer Carmeuse to insurance platform Ascentiel Groupe. Its shareholder base includes Belgian, German, and UK family dynasties, including descendants of Anheuser-Busch InBev’s de Spoelberch family and former Boehringer Ingelheim CEO Hubertus von Baumbach.
