Friday, December 12, 2008

PEU Boys Keep $750 Billion on Sidelines

Private equity underwriters (PEU's) have significant uninvested assets, to the tune of $750 billion. Reuters reported:

Private equity is sitting on some $450 billion of capital committed for buyouts, according to data from consultancy firm Preqin, with funds still on the road targeting a further $300 billion.
While the Bush administration mobilizes over $7 trillion in public funds, the private sector watches from box seats. Sometimes, they make an order. The Carlyle Group has $40 billion in uninvested capital, yet affiliate Boston Private Financial Holdings received $153 million in TARP money. What do those tea leaves say? Despite $750 billion in dry powder and Uncle Sam's good will, investors dump private equity investments, some for less than 50 cents on a dollar. Tea leaves say investment is dead for many investors, killed by greed and leverage.