Private Equity - Deconstructing the boom January 2007
In our fourth Thought Piece we examine the impact of the Private Equity boom. Developments in the global economy, over the past decade, have boosted return on equity and profits. However at the same time high levels of scrutiny by the share market have had a systemic impact on management's strategic decision making. And, with the limited requirements for capital funding, has private funding become more attractive? So therefore, is private equity bidding up the valuation of assets to unreasonable levels and increasing debt levels in a manner that is risky to the economy? Back to Thought Pieces