Investment Management

 

"If the fourth quarter of 2007 is any indication of what’s in store for private equity firms in 2008, US private equity firms will not be the major players in the M&A market. Large buyout deals have fallen prey to the credit crunch. Private equity firms that had been riding high on cheap financing must now contend with lenders skittish to syndicate or lend on speculative deals. This coupled with high costs and increasingly burdensome covenants in the financing documents for deals that are approved, means there is a much lighter deal flow and increased likelihood that deals in progress will collapse during negotiations. "

 

The preceding quotation is from an article by Irwin Kishner and Brooke Crescenti of TAGLaw's New York member firm, Herrick Feinstein, that first appeared in Financier Worldwide’s March 2008 Issue.  The entire article, as reprinted with permission by Herrick, can be downloaded by clicking HERRICK MARCH 08.pdf.