Private Cost of Equity Up, Per 2023 Pepperdine Report

Business Valuation UpdateVol. 29 No. 7
July 2023
cost of capital
cost of capital, pepperdine private capital markets study, risk analysis, industry analysis

Summary

Private-company cost of equity is higher this year across nearly all categories, by about 5%, according to the 2023 Private Capital Markets Report. “This translates to an average of 25% this year, up from 20% last year,” says Dr. Craig R. Everett, the project’s director. The article also demonstrates how to use the report for developing private-company cost of capital.