Some of the world’s biggest buy-out groups are coming under pressure from cash-strapped investors to reduce their commitments after Permira’s landmark offer to let its backers off the hook for €1.5bn. Those most at risk are funds with poor records, such as Apollo Global Management, which owns companies that have faced or are facing bankruptcy, or Terra Firma, which is struggling to turn round the EMI music group. While banks are being forced to cut back on their use of debt and hedge funds are seeing a rush of requests for their money, private equity bosses have long boasted they have money locked up for a decade. But now investors are turning the screw to discuss renegotiating the terms of these previously rock solid commitments. Buy-out groups that have only recently raised huge new funds or just started to invest, such as TPG Capital in the US and CVC in the UK, could also face pressure from investors.

This entry was posted by Gwen Robinson on Monday, December 8th, 2008 at 5:47 and is filed under Capital markets, Private equity. Tagged with cvc, permira, tpg. Edit this entry.