Have private equity tech takeovers peaked?

August 3 - Computer Business - Has the boom in private equity takeovers in the IT sector peaked already? The recent squeeze in the credit market has meant that private equity groups are finding it more difficult to gain access to the cheap debt that has fuelled the remarkable explosion in leveraged buy-outs over the last two years.

Private equity giants such as KKR, Cerberus and Blackstone fund takeovers through loans from credit investors, but escalating mortgage defaults in the US have forced the lenders to adopt a more cautious approach to would-be borrowers.

There was evidence of this shift in sentiment last week when investors at Chrysler and Alliance-Boots both rejected the terms on senior debt arising from the recent buyouts. And there are now signs that the flow of private equity moves in the technology and IT services space may be slowing down. Read More.