LBO Boom = Tech Bubble?
Carlyle Group co-founder David Rubenstein said today at the Super Returns conference in Frankfurt that he does not expect a buyouts market crash, but also that the mega-market “can’t continue like this forever.” Below is his PowerPoint presentation from the event.
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Paul said on February 28, 2007
Check out slides 39-43. They show that 9 of the 10 largest North American buyouts ever have occured in the past two years, and that a majority of the largest-ever buyouts on other continents have also occured during that time frame. Only wish it was adjusted for inflation, but still…
Joe said on March 1, 2007
I don’t have an opinion as to whether Mr. Rubenstein is correct or not in his conclusion that there will be a softening and not a crash. I hope that he is correct however. As a credit manager for a Fortune 100 company, I continue to watch the bankruptcy trends and look for evidence of any impending bank pullbacks or tightening. My biggest fear is that there will be a large, unforeseen bankruptcy that causes the banks to tighten credit and move to a role of calling loans rather than renegotiating covenants. I know that the cycle of loose credit will come to an end as the global economic cycle evolves. My big concern is that an LBO miscalculation will be a catalyst.
Humphrey Bogus said on March 1, 2007
Any chance you could put this up in a printable format?