Secondary buyouts rise as private equity spends cash pile
Date: July 26, 2010
Buyout firms need to spend about $1 trillion (€777bn) of dry powder – committed but uncalled capital – that was raised during the boom years of 2005 to 2007, according to data provider Preqin. Some $400bn of that cash pile must be spent in three years or returned to investors, but the continuing recession has stifled the number of prime acquisition targets. Meanwhile, firms are also under pressure to sell assets to return capital to cash-strapped investors.
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Source: Financial News
