How bad is it

1
How bad is it?
2
Private equity transactions by deal size
Source Dealogic
3
PE-backed companies in bankruptcy
Source Bankruptcy Insider/The Deal
4
Other PE-owned companies are in dire straights

• FGIC (owned by PMI Group, Blackstone, Cypress
  Group and CIVC Partners) Bond insurer is
  searching for new sources of capital
• Linens n Things (Apollo Management) Retailer
  is in talks with creditors
• GMAC (Cerberus and syndicate of hedge funds)
  ResCap home mortgage unit threatens to take down
  parent, forcing 51 owner Cerberus and 49 owner
  General Motors to work on bailout

5
See you in court Buyouts that ended in
litigation
Source The Deal
6
Now the good news . . .
7
The middle market has held up surprisingly well
Source Dealogic
8
Panic is subsidingHigh-yield bond prices have
rebounded in the secondary market
Standard Poors LCD Merrill Lynch High Yield
Index HYMarket.com
9
There is still a trickle of take-privates
Source The Deal
10
Big sponsors are deploying capital abroad in new
markets
Source The Deal
11
Having capital when others dont Bailouts of
financial firms
Source The Deal
12
New exit route SPAC purchases of sponsor-backed
companies
Source The Deal