Piper Jaffray: Credit Crisis Good For Private Equity

Sep 12 2008 | 11:57am ET

Despite the ongoing credit crisis, opportunities for private equity in the financial services sector remain compelling.

According to a Piper Jaffray report, since last August financial institutions have written balance sheet values down by approximately $500 billion. And with total loss estimates ranging from $1 trillion to $2 trillion, financial institutions are likely to experience additional losses and write-downs.

“Financial services companies, as well as regulators, shareholders, boards of directors and management teams, are recognizing the value-added sources of smart capital that private equity represents,” said Tom Chen, head of the financial institutions group at Piper Jaffray. “Forty percent of all private equity deals announced in 2008 involved financial services companies as compared to only 2%in 2001.”


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note