Private equity's barbarians are on top - for now

Article on private equity's current run on top ...for now.

Not since the late 1980s has the world of private equity so entranced Wall Street. The deals are huge ($33 billion for hospital chain HCA), and the investment dollars continue to pour in (new record: Blackstone closed a $15.6 billion fund in July). Lost in the hoopla, however, are the unmistakable signs of a top - signs that have industry insiders plenty worried.

One neon-red flag was the recent decision of Wilbur Ross, a savvy market timer who has called turns in basic commodities like coal and steel, to sell his own firm, W.L. Ross & Co., to Amvesco for $375 million. Ross, who will continue to manage the firm, says he's delighted to have a deep-pocketed new partner and denies trying to time the private-equity market.

Read on.

3 Comments
 

it's all because of Sarbanes Oxley. no US company wants to put up with all the crap so they just go public overseas or just stay private.

 

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