Seeking Alpha

P-E sector enjoys another record year

  • Private-equity firms are set to return over $120B to their investors for this year, surpassing the 2012 record of $115B, Cambridge Associates estimates.
  • The P-E sector has been assisted by low interest rates, which have helped P-E backed companies to sell $66.2B worth of debt in 2013 to fund dividends to their owners, up from $64.2B a year earlier.
  • The Fed's easy money policies and subsequent stock boom have also been a factor, with a record 94 companies with P-E investors bringing in $33.3B in IPOs.
  • The high payouts have helped buyout funds raise $143.5B in 2013, the most since 2008.
  • Blackstone (BX) and KKR (KKR) are among those to have benefited, while others include Carlyle (CG), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global (APO).
Comments (3)
  • The rich get richer...
    31 Dec 2013, 09:47 AM Reply Like
  • Bx is set for great things. money
    31 Dec 2013, 04:38 PM Reply Like
  • I have considered both BX and KKR. I read a quote awhile back that has always bothered me. That these types of firms are generally run primarily for the benefit of the partners, the shareholders are a distant second.
    29 Jan, 12:45 PM Reply Like
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