LPs: Availability of debt damaging PE

Too much debt is driving buyout firms to target inferior deals or over-leverage premium ones, according to Coller Capital’s survey of investors.

Roughly two-thirds of limited partners believe that an over-supply of debt in the North American private equity market has resulted in over-leveraging and the pursuit of inferior deals, according to a survey released by Coller Capital on Tuesday.

The findings were in stark contrast to those in Asian-Pacific and European markets, where a solid majority of LPs believe deals are being financed at adequate levels.

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