Interesting article arguing that PE model is inherently at odds with bank’s culture of maintaining liquidity. HSBC’s sale of its PE arm to company management (10 years after they sold it to HSBC) is further evidence of the claim that banks are notorious for disposing assets too cheaply in periods of crisis, which is diametrically opposed from the long-term ‘J Curve’ worldview of PE.

Link: http://www.arabianmoney.net/private-equity/2012/03/25/why-is-hsbc-selling-out-of-private-equity-in-the-middle-east/