Private Equity Financier Faces Challenges Amid Declining Returns

Dawson Partners, a key player in the $1.2 trillion fund finance market, is facing challenges as its strategy of leveraging investments is showing cracks. The firm's inaugural fund, which initially posted strong returns, has seen its internal rate of return drop to less than 4%, placing it in the bottom quartile of peers. This decline is partly due to investments like Brightline railway, which has struggled financially. Despite raising over $5 billion for a new fund, some long-time investors, including the Alaska Permanent Fund, are pulling back due to concerns over Dawson's rapid growth and mixed returns.