Private Equity Capital

How Private Equity Capital May Help the Economy

As I alluded to in today's earlier post about the state of private equity, many firms are holding a lot of assets and simply waiting through the rough economic conditions for solid investment opportunities.

If you recall about two years earlier, private equity firms were attracting a lot of criticism for the perceived secrecy of the big buyouts they were making and the potential risk in the use of leverage to conduct these buyouts. Now, the economy is in dire need of capital to support the financial giants that have been collapsing recently. Private equity firms possess a large amount of this capital and many people are advocating for increased private equity investment as a sort of stimulus to the economy. This is not to say that private equity firms haven't felt the effects of the economy's decline, much to the contrary, but the industry has maintained a fair amount of capital throughout that many hope will revive the economy, at least in a minor way.

Dale Oesterle mentions the irony of this situation in his blog here.

Permanent Link: Private Equity Capital

For e-mail subscribers, here is the link to the BLF blog that I mentioned: http://lawprofessors.typepad.com/business_law/2008/09/private-equity.html

Tags: Private Equity Capital, Private Equity Economy, Private Equity Reputation, Private Equity Capital Investment

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Link to This Resource: Private Equity Capital

http://privateequityblogger.com/2008/09/private-equity-capital.html