Private Equity

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Joined: Mon 28. Feb 2011, 11:17
PostPosted: Mon 23. May 2011, 19:04
Private Equity

In addition to the housing bubble, financial derivatives and hedge funds thrived another phenomenon: private equity.
The first term, he once said that businesses and assets of a private group are held .Thea dont collect private money in the form of equity capital to purchase assets, including listed companies.
The policy of easy money by central banks has also leeds into massive excesses .The wonderful returns of the first private equity deals ever more capital moved to the Branche.Already 2003, investments in smaller denominations to retail investors .With this expands the options for entry into massively since so now everyone get involved kann.When a business knows his business really, it has no problems in capital from major investors to comm.An capital is lacking in the world really is not ... ...
Over the years, the deals were always more risky.In 2006, the world more than 650 billion dollars in debt-financed acquisitions investet.The shareholders' equity is often only 20% of the transaction amount so-called locusts .The tactic is not to deny here ....
The massive rise of private equity deals is the result of cheap money, small time horizons and risk preferences of the larger PE Gesellschaften.As long interest rates were low, could make good profits in the industry functions .What in a low interest rates may soon rise at a time interest rates are over ...
The only plus point of the destruction of capital is based on the fact that the landing fees of most private equity firms are subject long-as it can also closed-end funds ist.So, investors feel on the paper even longer as the owner of an asset, even if it already worthless ist.Sie ebentuell a limit their consumption, panic reactions are avoided, in contrast to the stock or real estate markets.The air escapes slowly, but surely hardly merlich from the private equity bubble ... ...

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