Article: Life after LBOs

Boston Capital

What's a private-equity firm to do when the leveraged-buyout business goes kaput?

Those firms can't make any more big, highly leveraged deals because their bankers have cut them off. They're having a hard time just getting some banks to make good on loans promised before credit markets froze.

Now many of those investment firms are raising new kinds of funds aiming to take advantage of the same credit market problems that are putting the leveraged-buyout business on ice. Private equity is turning into private debt.

Exaggeration alert: Some acquisitions of smaller companies by private-equity firms will still take place and, just this week, Advent International of Boston raised ...

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