Private Equity Firms Contribute Less and Less Equity

Kellerhals, Richard
June 2010
High Yield Report;6/28/2010, Vol. 21 Issue 26, p20
The article examines the declining amount of equity provided by private equity (PE) firms to leveraged buyout (LBO) deals. As banks sign more deals, the level of equity contribution continue to fall as PE firms are enabled to doll out less cash. A Standard & Poor's report indicated that the average debt-to-Ebitda ratio in the first half of 2010 increased from 4.02 times to 4.4 times.


Related Articles

  • Slipping Back to Old Habits? Kellerhals, Richard // Investment Dealers' Digest;7/9/2010, Vol. 76 Issue 25, p17 

    The article reports on the leveraged buyouts (LBO) of banks that buy more companies with less equity in the U.S. According to the Standard & Poor's Corp, the average debt-to-EBITDA ratio during the first half of the year was 4.4 times. Moreover, the author presents opinions of various sector...

  • ‘LBO bubble, what bubble?’. Lichter, Katharina // Pensions: An International Journal;Apr2008, Vol. 13 Issue 1/2, p97 

    The media suggests there is an LBO bubble: too much money is chasing too few deals; increased leverage has increased risk too much and there is an unsustainable private equity bubble forming. We classify a ‘bubble’ as an increase in prices of certain goods, a disconnect of prices...

  • Untitled. Chang, Joseph // ICIS Chemical Business;5/5/2014, Vol. 287 Issue 17, p14 

    The article discusses competition among private equity investors in the 2014 global chemical industry. Topics include comments from president at investment bank Young & Partners, Peter Young, on the downsizing trend in the chemical industry, the outlook for chemical industry global mergers and...

  • Corporate Financial Policy. Sprague, Carolyn // Corporate Financial Policy -- Research Starters Business;4/1/2017, p1 

    A corporation's financial policy defines the company's overall approach to managing its financial decisions. A company's financial strategy is comprised of the following: Capital budgeting, financing and dividend policy. While every corporation typically deals with these three areas when setting...

  • COMPELLING VALUATIONS…BUT. Whitfield, Bruce // Finweek;12/6/2007, p42 

    The article reports that shareholders in the banking industry suffered in South Africa. According to the author, despite the compelling valuations, bank shares have underperformed the overall industrial and resources sectors. However, unlike global banking giants, which have written off billions...

  • One-Stop Financing Solutions. Tannenbaum, Leonard; Tannenbaum, Jessica // Mergers & Acquisitions: The Dealermaker's Journal;Apr2010, Vol. 45 Issue 4, p44 

    The article focuses on the changes in the leveraged buyouts (LBO) market as an impact of recession. It is said that recession has forced the market to replace the traditional two-lender model which includes bank plus junior debt provider, with one-stop financing solution. Private equity sponsor...

  • Thames takes a plunge into Europe.  // Fund Strategy;9/17/2012, p1 

    The article reports on the plan of Thames River Capital LLP to invest in the Standard Life European Equity Income fund. According to Thames River's Rob Burdett, the decision was made because Europe's equity valuations are showing significant gains in the second quarter of 2012. Details on the...

  • Dissecting the Data. Greenberg, Andrew T. // Mergers & Acquisitions: The Dealermaker's Journal;Jun2009, Vol. 44 Issue 6, p48 

    In this article, the author discusses the benefits of valuation data of private equity transactions in the middle market which he along with his colleague, Graeme Frazier had improved. He says that the data base has given them a great vantage point on the world of middle-market mergers and...

  • Chemical Takeout Multiples Heat Up. Grocer, Stephen // Mergers & Acquisitions Report;7/19/2004, Vol. 17 Issue 29, p1 

    Reports on the rising valuations of chemical companies for mergers and acquisitions in 2004. Factors which influenced the rise of private equity activity; Range of earnings by interest, taxes, depreciation and amortization (EBITDA) for chemical companies; Role of strategic players in the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics