The FT’s Markets podcast flagged a growing unease among private‑equity sponsors that some portfolio companies are structuring transactions where the seller also acts as the buyer. Critics argue the arrangement creates a conflict‑of‑interest that can inflate valuations and favour insiders. Private equity backers are now urging greater scrutiny before green‑lighting such deals in Europe and North America and Asia.

In the same briefing, regulators in China blocked Meta’s $2bn acquisition of AI specialist Manus, citing national‑security concerns. The move illustrates how governments can intervene when cross‑border deals appear to advantage one party at the expense of broader market fairness. Investors fear similar push‑back could arise if sweetheart agreements escape oversight. The precedent underscores why due diligence must intensify for future cross‑border M&A.

The chorus of dissent signals that limited‑partner committees may demand independent valuations and stricter governance clauses in future transactions. Without such safeguards, inflated purchase prices could erode returns for limited partners and attract regulatory scrutiny. Market participants therefore face mounting pressure to prove that seller‑buyer structures deliver genuine economic benefit rather than merely reshuffling ownership. Shareholder activists are also filing complaints in key jurisdictions.