Tuesday, December 04, 2007

Investors See End to Buyout Boom, Survey Says

How do limited partners feel about the recent shifts in the buyout landscape? More than a bit gloomy, according to a new survey by Coller Capital, which found that most institutional investors think the private equity boom is over, with North America likely to feel the pain most acutely.
The results of the survey, which polled more than 100 limited partners that invest in private equity funds, are hardly surprising given the turmoil in the credit markets, which has made private equity deals much harder and much more expensive.
The survey did produce at least one optimistic finding. Ninety-six percent of the respondents said they plan to increase their private equity investments, and 78 percent plan to increase their relationships with private equity fund managers. Evidently, these investors don’t see any better options for generating high returns on their money.
The private equity boom may be over, but it seems few alternatives have arisen to fill its place.
Go to Press Release from Coller Capital »

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