Money continues to pour into private equity funds from investors searching for ever higher returns.
They are jostling for position in the race to cash in on the many corporate restructuring opportunities. Availability of capital and the worldwide development of a private equity culture has yet to translate, however, into a surge in leveraged buy-out deals. Such transactions are complex, and there is a lag time between the idea taking hold and the deal hitting the markets. Stung by expectations of over-optimistic returns that failed to materialise, investors have become more conservative. Caution caused them to sell many investments in the equity and bond markets.