Daily News: December 11, 2014

Private Equity Change Favors Strongest Firms

The New York Times reported that a shift in the private equity industry is benefiting the strongest firms while forcing others to make concessions to attract new money.

According to the Times , investors in private equity funds are receiving an influx of cash, due to the soaring stock market, low interest rates and other factors that are helping private equity managers reap profit from the companies they own, and are in turn putting much of that cash back into the industry, emboldening them to be selective and bargain for better terms with a range of funds.

The dynamic is leading to more robust negotiations between private equity firms and their investors, referred to in the industry as limited partners, the Times added.

To read the entire Times article, click here.