- Big private equity firms are making massive equity investments in acquisitions, challenging the idea that they miss out on bargains when company prices fall.
- Silver Lake recently announced that it would acquire Qualtrics for $12bn with $10bn in the form of equity.
- Private equity firms are content with mediocre returns given volatile markets, but high management fees can make up the difference.
- Buyout specialists are expected to invest more money due to the flux in public debt markets and nascent/expensive private credit market.
Leveraged buyouts: big funds flaunt their equity muscle
Specialist buyers may not get massive returns but high management fees can make up the difference
