Tuesday, February 19, 2008

Private-Equity Lessons

February 19 - Forbes - The global credit crunch has left its mark on private equity deal volume. But the way private equity funds respond to massive market and economic uncertainties is instructive.

Now more than ever, these funds are sticking with their winning recipe, which enables them to generate big returns from dramatic improvements in operations. The results speak for themselves. The top 25% of U.S. private equity funds raised between 1969 and 2006 have earned internal rates of return of 36% on average, through good times and bad. That's close to 10 points higher than the equivalent S&P 500 top quartile. Read More.

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