Private equity chief warns impact of war in Iran on global economy on a par with dotcom crash and financial crisis

The boss of private equity giant CVC yesterday warned that global upheaval amid the war in Iran was comparable with the dotcom crash and the global financial crisis.

Rob Lucas said that when added to other turbulence going back to the pandemic, the last five years will come to be seen as ‘very much of a similar path’ to those major shocks.

His thoughts on the impact of the Middle East crisis – which has sent oil and gas prices surging and plunged markets into turmoil – came as elsewhere Legal & General boss Antonio Simoes said he was closely monitoring the fall-out.

Lucas shrugged off the effect on his own firm, saying: ‘Each time we go through one of these dislocations – the GFC, the dotcom bust in 2000 – there is a flight to quality.

‘We then gain market share, the market continues to grow over the years ahead, and we retain that market share.’

Asked if latest events were on a par with those past episodes, he said: ‘If you take the last five years in total – absolutely. I think we’ll look back and see this five year period as one of very much of a similar path.’

CVC's investments include a stake in the Six Nations rugby tournament

It came as the firm reported realisations – cash generated from successful disposals of its holdings – of £19bn for 2025, up 67pc on the year before.

But asked about the coming year, Lucas said realisations were ‘always a bit lumpy and slightly unpredictable’.

Shares in the Amsterdam-listed firm, whose investments include a stake in Six Nations rugby, slumped 7pc.

Elsewhere, L&G boss Simoes said of the Middle East conflict: ‘We’re monitoring the impact of energy prices in particular – what that does to inflation, what that does to interest rates.

‘It will depend critically on how long the conflict takes and of course what we all wish for is a resolution as quickly as possible.

‘The impact in all countries will depend a bit on this interplay of energy prices, inflation and how that short term volatility impacts the markets.

‘If this is a temporary impact on inflation – if it’s a short-term conflict… then there’s less of an impact on interest rates because central banks will see through that.’

It came as the insurer reported a 6pc rise in core operating profit to £1.6bn, falling short of expectations. Shares fell 7pc.

Share or comment on this article: Private equity chief warns impact of war in Iran on global economy on a par with dotcom crash and financial crisis

View Original Article