Tuesday, January 20, 2009

One Third of Middle Market LBOs To Set Up Appointment with Cryptkeeper

Jon Moulton, head of the cool sounding Alchemy Partners (I thought that was reserved for Paulson and Bernanke's upcoming hedge fund), has said that nearly one-third of mid-market buyouts could fall into receivership (UK equivalent of bankruptcy). The WSJ quotes Dr. Doom Jr. in his speech at the London School of Economics. In an analysis of the 50 largest European buyouts, Alchemy has found that only 3 have more than marginal equity value left. Not surprisingly "most private equity firms hold their equity marked broadly at cost."

That's some good pep talk for all those business students.
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