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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of