Buy-out industry warned on prices

Stephen Schwarzman, head of Blackstone, on Tuesday warned the buy-out industry that prices being paid for assets were in “nose bleed territory” and “seeds of excess” were being sown. Mr Schwarzman said private equity had operated in highly favourable conditions in recent years and its returns had been “amazing”. But he warned of the dangers of being complacent at a time when prices continued to be driven higher.