Please can someone help with the following:
- Which of the following best describes the competitive environment risk of investing in private equity?
A. The competition for finding reasonably priced private equity investments may be high.
B. The competition for funds from private equity investors has increased as financial
markets have fallen in activity.
C. The competitive environment in the product markets for portfolio companies has
increased due to the economic slowdown
The answer is A, but why is B incorrect?