Monday, 30 March 2015
Last updated 2 days ago
Nov 30 2006 | 9:54am ET
Their debt levels are skyrocketing and their valuations are high, but that won’t stop private equity firms from buying U.S. information technology companies, according to Fitch Ratings’ 2007 credit and operating trends outlook for the sector.
According to Fitch, tech leveraged buyouts will continue next year, even though “the list of attractive technology targets remains short,” with buyers attracted by maturing growth rates, consistent free cash flow and conservative capital structures. Also, Fitch notes, p.e. firms will have to put their money somewhere.
“LBO speculation and activity will be driven by strong private equity fund inflows, a favorable credit environment and relatively stable demand for IT,” Fitch said in a release. It warned, however, that the technology cycle could be peaking, and the sector offers fewer obvious opportunities for cost reduction.
Thanks in part to expected LBO activity, the IT sector’s debt level is set to reach historic levels. Fitch estimates that it will rise by 40% to $140 billion in 2007, driven primarily by refinancings.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…