Buyout Firms Combing U.S. for Sky-High Sums to Invest
Private-equity funds are in a mad dash for cash.
Across the country, nearly 2,000 private-equity firms are making pitches to state retirement systems, corporate pension funds and wealthy investors in the hope of raising nearly three-quarters of a trillion dollars for their next, new funds — more than what was raised over the last two years combined. The push is part of the life cycle of the private-equity industry, which raises investment pools from large institutions and others that typically last about 10 years. Buyout firms combine the money with borrowed cash to acquire companies over the first five or six years and then sell those companies or take them public — at a profit, if all works out — before the 10 years are over.
One of the fastest ways to get into the tycoon game and build up a grubstake for your own deals is by first bird-dogging deals for these firms.