Handelsblatt exclusive

Waiting for the Fall

112642249 Johannes Huth KKR Carsten Dammann for HB1800
Winter is coming. Source: Carsten Dammann for Handelsblatt

Johannes Huth says he faces a “dilemma” because, simply put, things are going rather too well. It might seem like an odd thing to say, but in the financial world where bubbles and busts are common, it makes perfect sense.

“In my entire career here, I’ve never seen things running this smoothly for our 200 European engagements. That makes me cautious, because it can’t continue like this forever,” Mr. Huth, who heads the European business of KKR, told Handelsblatt.

With that, Mr. Huth added his voice to a growing chorus of investors worried that valuations for companies in Europe are running, as he says, “very high.” While demand remains extremely strong at the moment, he predicts these will fall rather than rise in the medium term. Asked if share price valuations will be lower in three or four years, he said: “I think so, yes.”

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