Is Private Equity Poised For A Quick Bounce-Back?

That’s what a new study from Thomson Reuters and JPMorgan is suggesting. You can view the entire study, titled "The Era of Globalized M&A: Winds of Change," after the jump. Pointing out that private equity has historically been a key driver of M&A, the study discusses what we know as the “dry power,” or “overhang” conundrum. The disparity between the sheer amount of money invested in buyout funds and their inability to deploy it, the study argues, reflects a true negative in the market. The robust fundraising market “demonstrates clearly an over exuberance in the boom market rather than any prophetic insight prior to the subsequent busts.” In other words, LPs didn’t see this coming.

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