TITLE

Private Equity Firms Contribute Less and Less Equity

AUTHOR(S)
R. K.
PUB. DATE
June 2010
SOURCE
Bank Loan Report;6/28/2010, Vol. 25 Issue 26, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article reports on the decrease in the amount of equity buyout firms that contribute to leveraged buyout (LBO) deals in the U.S. According to the U.S. head of loan sales and origination of an international bank, the squeezing of equity checks closer to 30% would be the natural tendency if LBOs continue to be underwritten and placed. Moreover, the decrease equity is stated to have been driven by market supply and demand.
ACCESSION #
51908597

Tags: EQUITY stake;  LEVERAGED buyouts;  SUPPLY & demand;  BUSINESS enterprises

 

Related Articles

  • Banks' Equity Bridges May Be More Like Tightropes. M. S. // Bank Loan Report;5/28/2007, Vol. 22 Issue 21, p1 

    The article focuses on the investment banks engaged in arranging debt for leveraged buyout (LBO) funds that are establishing equity bridges to aid private equity sponsors in the U.S. It discusses the presence of equity bridges in any LBO deals so that sponsors may avoid bringing more private...

  • The LBO Market.  // Mergers & Acquisitions: The Dealermaker's Journal;Feb2003, Vol. 38 Issue 2, p49 

    Presents information on the leveraged buyout (LBO) market. Number of LBO deals from 1993 to 1992; Top 25 business enterprises involved in LBO in 2002; Reverse leveraged buyouts in 2002.

  • Smoking PIPEs In 2009? Holman, Kelly // Investment Dealers' Digest;1/5/2009, Vol. 75 Issue 1, p10 

    The article reports on the impact of tough credit conditions on fueling private equity interest in minority stake investments of publicly traded companies in the U.S. A lack of debt means leverage for buyouts or recapitalizations will be difficult to secure in the coming months in 2009. Hence,...

  • TRANSITIONING Toward A Global LBO Market. Pappalardo, Armanno Andrea // Mergers & Acquisitions: The Dealermaker's Journal;Nov2002, Vol. 37 Issue 11, p29 

    Analyzes the parallels between the U.S. and European leveraged buyout (LBO) markets. Approaches adopted by U.S. LBO firms toward industry specialization; Alternative approaches adopted by firms to develop in-house top management expertise; Examples of LBO transactions in which specialization...

  • You can be your own white knight. Hackett, Lee P.; Fredrick, Scott E. // Financial Executive;Sep/Oct89, Vol. 5 Issue 5, p48 

    The article reports on the use recapitalization as a way for a company to avoid hostile takeovers while slowly growing the organization into a mature business. The benefits of a leveraged recapitalization or recap include: maximized shareholder value via a dividend and an equity stake or stub...

  • Planning a leveraged transaction? Make sure you can survive the sale. Collins, Kevin; Hirschhorn, Warren // NACD Directorship;Mar1996, Vol. 22 Issue 3, p12 

    Focuses on the implications of fraudulent conveyance laws for a company that is considering a leveraged transaction. State statutes dealing with fraudulent conveyances. Tests of the financial condition of the company that intends to sell; Capital adequacy analysis; Factors to consider in...

  • When anger breaks out in the boardroom. Salomon, Richard // Directors & Boards;2007 1st Quarter, Vol. 31 Issue 2, p34 

    The article discusses the possible specification on using anger as the negotiation tool on business deals. These include on knowing the opponents concerns and how the latter interpreted it as negative; always remember the ultimate goal and that is to close the deal not to destroy the...

  • In Leveraged Loan Market, Steps Toward Equilibrium. Davenport, Todd // American Banker;6/30/2008, Vol. 173 Issue 125, p1 

    The article reports that the U.S. leveraged lending market has made steps towards regaining equilibrium. The 2007-08 credit crisis shut the leveraged lending market down, the article indicates. Topics include an imbalance between supply and demand, improved lenders' pricing, and stronger...

  • Fallen Angels Perform Better Than Spec Grade Counterparts. O'Connor, Katie // Bank Loan Report;6/27/2005, Vol. 20 Issue 25, p8 

    Focuses on the positive side to being downgraded from investment status to speculative grade status. Assessment of the prior investment grade credit quality; Increase in companies' borrowing levels; Improvement in leveraged buyouts; Investment opportunity of investors in the leveraged finance area.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics