Jon Moulton, managing partner of
Speaking at the Cambridge University Land Society Breakfast, he told the 150-strong audience: “For the first time in ages, we can all see a route to recession.”
He said a shortage of money and rising rates “will drive property prices down, shoppers’ propensity to spend down and it will put retailers under pressure”.
He added: “For you, there will be a lot less debt, a lot more volatility, and a softening of values.”
Moulton also defended the private equity industry from recent attacks of greed.
He said that while the industry has generated enemies from public companies, the tax man and trade unions, the industry had generated good returns for investors.
“It is now a mature industry – so it is actually difficult to find a bad buyout firm,” he said.
But he said that private equity groups will no longer enjoy the huge returns that it has been seeing over the past few years – particularly on large buyout deals.
“I expect it will be the same for those guys in property who made large acquisitions five to six years ago at prices that the rest of you said were bonkers.”
