Are private equity firms relying on blank-check companies to monetize their acquisitions? That's what Bloomberg all-star reporter Jonathan Keehner and Elizabeth Hester are saying.
"We're definitely seeing private-equity firms talk to SPACs as possible exits for their portfolio companies,'' Thomas Ivey, a partner in the Palo Alto, California, office of Skadden, Arps, Slate, Meagher & Flom LLP, tells them. (Note: Carney worked for Skadden back when he was a lawyer.) "The M&A market for traditional private-equity purchasers is closed. The other piece is that the IPO market is closed.''
The real question, of course, is how much of a haircut the PE bigs are taking for these deals. It's good to have cash in a credit crunch but we're wondering how good.
Kohlberg, Madison Find Blank-Check Buyers as IPO Prospects Dim [Bloomberg]
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