Private Equity Funder Warns of Major Defaults

6 de junio de 2007

<body><div id="article"><tr><td height="23" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Private Equity Funder Warns of Major Defaults</h1><p>June 6, 2007 (LPAC)--One of the biggest lenders to private equity funds, warned investors yesterday that "a glut of cheap debt meant buy-out firms are not pricing in risk on their bids or leaving any room for deals to turn sour," <i>The Times</i> of London reports today.</p><p>Intermediate Capital Group said the structure of deals was now so risky that "it was almost inevitable there would be defaults, especially on the larger multibillion deals where the appetite for risk was even greater," the <i>Times</i> reported.</p><p> <i>The Times</i> quotes Philip Isherwood, European strategist for Dresdner Kleinwort in London, saying: "The risk is that default rates rise, then the cost of debt starts to rise and some of these deals will inevitably start to fall over."</p></div></body>