The scalding pain of Monday's liquid(ity) brutality is fresh in the mind. Sure, Buffett is there to remind us that it is actually possible to buy (and not just "hold" since short-sellers are still shackled to each other in a rough and rusty embrace), but even that isnt particularly reassuring considering given Congress' propensity to talk a lot about anything and nothing. So what is there to look forward to? Value buyers to creep out from the woodwork and snatch lucrative deals at such a pace that the bubble is re-inflated and expands to the point of vacuum decay? Well, many value investors have taken such a drubbing that it is hard to contemplate circumstances that might stave off doom.
Isn't private equity supposed to be lurking around somewhere out there in the darkness?
In 2007, U.S. PE firms raised over $310 billion, a record at the time. By the third quarter of that year, they had amassed just over $200 billion for their coffers. And 2008? Dow Jones is reporting $222.6 billion through Q3 2008. Well, that's probably all from before the credit crunch. Certainly, the last quarter would have been a brutal one for fund raising, even if you yelled "distressed" until blue, or whispered "special situations" until pale. Right? Wrong. In fact, the Q2 2008 figures lagged 2007.
Private equity fund raising posts an 11% year on year growth through Q3 2008. With growth like that PE is on track to fund the entire bailout plan in something like 3.5 years.
Posted by guest , Oct 07, 2008 8:32AM
Gosh! this has become the worst website.
PLS WRITE SMALL RELEVANT Stuff.
Not Research papers like what US FED publishes every now and then
Posted by guest , Oct 07, 2008 8:32AM
I'm a putz but I'm futz!
Posted by guest , Oct 07, 2008 8:34AM
What?! What did you hear about Silver Lake?!?!? Dammit I don't even see the reference. Christ, it must be some insider signal. Crap! Sell! Frigging sell it all! Call Pomona or whoever buys this crap on the secondary. Its all crap! Just get rid of it!
Posted by guest , Oct 07, 2008 9:24AM
Why don't you ask the imaginary principals at your fictitious private equity employer?
Posted by guest , Oct 07, 2008 9:27AM
You're a moron. Private equity funds don't have those funds "sitting in their coffers". They have capital commitments from their limited partners, which is a nice euphemism for "unsecured debts." Just like there are redemptions coming out, there will be defaults on capital commitments from some limited partners. Some of those limited partners don't exist anymore and the rest are starved for liquidity so.....
Posted by guest , Oct 07, 2008 9:37AM
@4,
Understand a joke much? Guessing you have not perceived the "sell first, ask questions later" mentality that seems to have crept in.
Go back to your little piece of Cramerica.
Posted by guest , Oct 07, 2008 9:44AM
Did CNBC this morning say that "being over hedged" is working?
Posted by guest , Oct 07, 2008 9:50AM
@7,
Yes, but some anchors are also fans of being underintelligenced.