December 01 2008
PE Hunkers Down
The absence of public equity and debt markets creates both opportunity and risk for private equity. Cash rich funds with unlevered assets have the upper hand.
by Dan Shirai
Owners of private companies across the region have sobered up to a new reality when it comes to capitalizing assets or cashing in equity chips. Especially in Brazil, where an IPO boom had managers focused on public market paydays, the dream of selling an equity stake at an inflated valuation is long gone. Owners are resizing expectations no doubt fueled by fee hungry bankers to what private equity investors say are more reasonable levels.
People are finally going to face reality, says Julio Marquez, head ...
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