Private Equity's Peculiar Plight: So Much Capital, So Little Credit

Investor's Business Daily ^ | 6/10/2010 | Norm Alster

[Slyscribe]

The private equity industry has what would seem to be an enviable problem.

Despite a recent history of turning solid corporations into debt-laden cripples, leveraged buyout firms are sitting on $445 billion of committed capital.

That's how much private equity has raised — but not yet spent — from investors like pension funds and endowments. Sounds like $445 billion is a good problem to have. But it's not that simple.

[glorgau]

And all I need is a lousy $50 million to get my “world changing” concept off the ground...

[wastoute]

Almost a half trillion dollars? Just sitting there as cash? It won’t be lonely long! I’ll bet Zero and his minions are carving it up right now!