Although the Private Equity industry has recovered spectacularly since the 2008 dip (it has recovered so fully that it is flush with money), The Financial Times warns that regardless of how much leverage and ambition it injects into a company, a Private Equity fund cannot easily compensate for overpaying – the article cites that “one investor estimates that his fund must pay 15 or 20% more to buy a company with stable earnings than it did two years ago”, one side effect from this being that paying a lot means the need to create value somehow and the danger lies in that investors may start treating every company like a distressed asset to obtain a result even if it was originally fine.