Friday, June 23, 2006

End of ‘Bountiful Era’ for Private Equity?

Even as private equity firms continue to enjoy “heady times,” the business is beset by a number of threats, The Economist suggests in its latest issue. There is “a growing sense among fund managers that the bountiful era is drawing to a close.”
Firms must deal with more competition, higher interest rates, troubled markets, demanding investors and hawk-eyed regulators. Further, many firms have taken on too much debt, often in the form of loans from hedge funds.

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