Some investors warn that buyout firms are borrowing at interest rates of as much as 19% and the risk of wider fallout is growing.
For an industry long used to easy money, the rush for such loans marks a reversal in fortune. Buyout firms have been battling rising interest rates and economic uncertainty, forcing takeover volumes to almost halve this year. Cash on hand at PEs is near the lowest since at least 2008, according to data from PitchBook.
Manco, NAV & other financial engineering loans are liable to blow up in the companies and Funds' faces…
Read the article on Bloomberg here: PrivateEquity Is Piling Debt on Itself Like Never Before
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