Tuesday, October 14, 2008

PEU Vultures Circling

Private equity firms search for distressed companies to put their billions to work. One private equity underwriter spoke to Maria Bartiromo on CNBC. He indicated his firm would look at banks, now that the government support structure is clear, i.e. good for investors.

Treasury didn't hammer existing share or debt holders with their preferred, non-voting shares. That leaves room for private equity to put their money to work, to gain control of management and governance. But first, they need a little more distress to bring down acquisition prices. I bet it's on the way...