Financial Times FT.com

Buy-out bosses warn of ‘tourist’ exodus

By Martin Arnold in Geneva

Published: March 15 2009 17:39 | Last updated: March 15 2009 17:39

The day of reckoning for private equity is approaching and the “tourists” who followed hot money into the industry during the credit boom will disappear, top buy-out bosses and investors have warned.

As many as half of private equity groups will disappear, some leading industry figures said. The survivors will be forced to abandon the excessive fees and “quick flip” strategies that characterised the credit bubble, others forecast.

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