According to the Wall Street Journal, over $215 billion of new money was raised by U.S. private equity funds in 2006 a third more than the amount raised in 2005. Leveraged buyout firms accounted for almost 70 percent of the total nearly half of which was collected by just eight firms involved in the largest transactions.
A little less than 12 percent of the capital raised, or $25.1 billion, was attributed to venture capital private equity who invest in start-ups and early stage companies. This was almost identical to the amount raised in 2005 by the venture capital funds.
Amazing! It just boggles my mind that the capital markets are awash with this much cash, but it continues to explain why the M&A markets continue to produce ever increasing sales price multiples.
When do you think the party will end? Or do you?
Having a hard time raising debt for your small or medium sized business? Give me a call!
Related Tags: private equity, M&A, venture capital, leveraged buyout
No comments:
Post a Comment