From today's WSJ:
"The Future Is...Private Equity
It may seem counterintuitive, given the problems infecting a number of private-equity firms such as Apollo Management,and & Co.
But these firms have a tremendous opportunity in front of them. They can build some hugely profitable businesses on the cheap, affecting a transformation from private-equity shop to full-blown institution.its broker-dealer license and has dabbled in debt and equity issuance. With scores of bankers soon to flood the Street, it could pick up teams of talented people and try to fill the void.
It will take some time to develop challengers to the megaliths now assembled. Still, is it any wonder whyshares were up Monday in a day for financial stocks?
"For the institution of the investment bank, the players are changing," says William J. Wilhelm, a University of Virginia professor who studies the history of investment banking. "But the needs are the same."
Is it me or does it feel really good over here in the buy side, specifically in the mid market sphere? Yeah, leverage multiples are down significantly from the boom days of 04-05, but this doesn't sway MM PE firms very much. We're looking at significantly lower valuations and correspondingly lower entry multiples. A lot of opportunity out there.