Stubs: Private equity opens its door to the public

August 1 - Report on Business - With tightening debt markets around the world forcing private equity firms to hit the brakes on as many as 20 planned leveraged buyouts, there is speculation the big buyout boom that's been driving stock markets may finally be running out of gas.

Where not too long ago private equity could command very favourable terms from the market, making the fuel for their leveraged buyouts quite cheap, skittish investors are suddenly demanding better terms for high-yield loans. Banks that loan billions of dollars to private equity firms for buyouts are having difficulties getting debt investors to purchase the loans.

Here's the thing. The sharp slump may make corporate valuations irresistible and, come Labour Day, some market watchers believe private equity will again be putting the pedal to the metal. So what's a smart private equity player to do? Look for ways to increase their leverage even further, of course. If there's one thing private equity players know and understand, it's how to use their cash to best advantage. Read More.