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Jun
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One of the main drivers of private equity deal making of large buy-out funds is the “expiration date” on massive amounts of committed but uninvested capital.  There won’t be such an over-supply of money when the time for divestment will come in 4-5 years.  It is a losing proposition for limited partners who are stuck with their commitments to invest and with misalignment of incentives with general partners.

One of the main drivers of private equity deal making of large buy-out funds is the “expiration date” on massive amounts of committed but uninvested capital. There won’t be such an over-supply of money when the time for divestment will come in 4-5 years. It is a losing proposition for limited partners who are stuck with their commitments to invest and with misalignment of incentives with general partners.

Tags: private equity   dry powder  
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  1. titocosta posted this
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