Buyout Firms Navigate Macro Shockwaves

The buyout market continued to slowly improve in 2011 as firms deployed war chests raised in the boom years of last decade and many prepared to raise new funds. But a sovereign debt crisis in Europe, a downgrade of the U.S.’s credit rating and domestic political battles rattled markets and curbed momentum midway through the year. Banks grew more cautious about financing buyouts and taking their portfolio companies public.