JUDGING THE VINTAGE

As speculation grows about the likely (under-) performance of leveraged deals struck over the last couple of years, it's all a question of what's in the portfolio.

Mark Wolfson, co-founder of Oak Hill Investment Management, says concerns about investments made in 2006 and 2007 are overdone. It's a heartening assessment, if a little surprising given the recent allusion in a Financial Times article to private equity “zombie companies” bought in highly leveraged deals just before the credit crunch and now judged to be worth less than they owe to creditors.

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