Monday, December 17, 2007

Private equity: Maybe down, but not out

A report predicts that private equity deal flow will continue to be healthy in 2008, even if returns are lower.

December 14 - Fortune - Despite turmoil in the credit markets, a string of broken deals, and a dramatic slowdown in M&A this quarter, the private equity deal machine is still humming, says a report released Friday.

According to Ernst & Young, buyout fund deal flow should remain strong in 2008 - even above 2004 and 2005 levels - because private equity firms still have a lot of unspent capital that they have to put to work. There are 150 private equity-sponsored funds with more than $1 billion, compared with only 14 in 1995, and managers at private equity firms tell Fortune fundraising remains strong. Read More.

No comments: