Letter from New York Part II
The consensus I took away from our trip was that 2007 is likely to see new records set. Whether we will see an LBO the size of Home Depot (see Richard’s note 4th December) is uncertain but far from impossible. In fact it is merely the perceived likelihood of ever more aggressive LBO’s that puts pressure on credit spreads.
Johannes Huth of private equity giant KKR’s summed it up nicely for me. “One way to respond to rising competition is by focusing on increasingly larger transactions, where only a handful of private equity firms can effectively compete.”
On a different note those in the Big Apple who fancy a challenge should head to Keens Steakhouse at 72 West 36th St…. you wont be disappointed!
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
17 years of comment
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