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As institutional investors ponder the performance of some of the buy-out private equity managers with whom they parked money in the last few years, they will be reminded of the old Wall Street adage about not confusing brains with a bull market.
In the benign conditions through most of the 1990s - an expanding economy, steadily climbing stock market multiples, readily available leverage and friendly conditions into which to exit investments - making money in leveraged buy-outs was no great mystery.
Now, the whole process has swung into reverse, as the global economy turns sour.
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