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Jonathan Karen Quoted in The Wall Street Journal on the Uptick of Leveraged Buyouts
04.22.21
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Funds Partner Jonathan Karen was quoted in The Wall Street Journal in an article titled, “Private-Equity Firms Regain Taste for Giant Buyouts.” The article discussed the recent resurgence of large leveraged buyouts, as private equity firms have a record $1.6 trillion in unspent cash, according to Preqin. The article also noted that buyout firms are enticing additional investors by providing the opportunity to invest directly in target companies and avoid fund fees. Jonathan commented that the potential for these co-investments indicates the dry powder that sponsors are sitting on is even greater than appreciated. “There’s this shadow capital. If you have a $10 billion fund, you might have $5 billion—or even another $10 billion—waiting in the wings,” he said.
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