Why are private-equity firms buying listed firms at a record rate?

OVER THE PAST year bankers and lawyers who arrange mergers between companies have been working overtime as private-equity firms buy up companies listed on stock exchanges at an unprecedented rate. Buyout groups have announced 6,298 deals around the world since the beginning of January, worth at least $513bn, according to Refinitiv, a data firm. British companies are the most popular targets. At least 13 listed ones there have been approached by private-equity outfits since the start of the year.

So why are they now spending so much? One cause is interest rates, which are at historic lows. These make debt cheaper to take on and service, swelling potential profits. They also mean that big institutional investors, such as insurers and pension funds, are searching for better returns than those available on safe assets, such as rich-world government bonds, which are almost zero.

Private equity may soon lose some of its attraction, however. Returns could fall if fund managers cannot find enough profitable opportunities. A recent paper by Josh Lerner of Harvard Business School and others shows that private-equity returns in America, its biggest market, have been on a downward trend over the past decade. Returns better than other asset classes in the past may not be a good predictor of future performance.

XeuleBot

In a nutshell. Price. Projected performance. Cherry pick Balance Sheet. Negligence. In a nutshell.

every stock bubble is preceded by dog eat dogs mergers Then a crash People love to gamble till they crash

horrible

🔥BossBabyLink ($BBLINK)🔥 The new token that rewards holders in Chainlink 🔥Many influencers on board 🔥 Active community 🔥LP locked for 6 months. 🔥 3 days old 🔥 Listed on CG / CMC coming Telegram: BabyLinkOfficial

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US, UK and Israel blame Iran for ship attack; Tehran deniesThe United States has joined the United Kingdom and Israel in accusing Iran of carrying out a deadly drone strike that killed two aboard a tanker off Oman Bennett belongs behind bars with buffoon Bibi!!
Source: ABC - 🏆 471. / 51 Read more »

AOC Says White House, Conservative Dems to Blame for Allowing Evictions to Resume“We have to really just call a spade a spade,” said Rep. Alexandria Ocasio-Cortez. “We cannot in good faith blame the Republican Party when House Democrats have a majority” So much for helping Americans. She literally never shuts up
Source: RollingStone - 🏆 483. / 51 Read more »

Ricky Gervais' unconventional relationship including why he won't marryRicky Gervais and his partner Jane Fallon have been together for nearly four decades, with the relationship beginning before either of them earned their fortunes Looks like he's out with his mother shopping for the day 우리는 우리를 지옥불에서 건지시는 예수님의 보혈과 십자가가 필요합니다. TheLatterAnointing The old pics of rickygervais and JaneFallon are fantastic ❤️ you guys are ageing well xx
Source: Mirror Celeb - 🏆 476. / 51 Read more »

Why You Suddenly Need To Delete Gmail On Your iPhoneHundreds of millions of iPhone users should delete the Gmail app after tracking warning... thanks Yeah, cause apple certainly doesn’t track your data. GTFO. UKZak This guy and Forbes claim to care about your privacy 😂😂😂 Just check out their data collection & privacy policy. What a fraud!
Source: Forbes - 🏆 394. / 53 Read more »

Former Pinterest whistleblower Ifeoma Ozoma talks about why confidentiality agreements harm tech workersBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. this is terrible news
Source: BusinessInsider - 🏆 729. / 51 Read more »

Why businesses use so much jargonIf you want to climb the corporate ladder, it can be an advantage to indulge in waffle and learn the ever-changing jargon of your industry Works a treat in your case. TREAT YOURSELF TO A MAJOR FOODGASM WITH THIS SENSUAL CHOCOLATE DESSERT! Click the LINK BELOW for full recipe YouTuber SmallYouTuber YouTube foodgasm foodie Thanks for the upskilling session - a great learning!
Source: TheEconomist - 🏆 6. / 92 Read more »