Financial Times FT.com

Private equity industry loses the plot over timing

Published: May 20 2007 15:51 | Last updated: May 20 2007 15:51

Every time you think private equity has scaled the peaks of death-defying risk, a new Everest comes into view.

Cerberus’s purchase of Chrysler is only tangentially to do with the fortunes of a clapped-out carmaker. The real economic risk lies in taking on $48bn of long-term financial liabilities, which mostly lie outside the company’s control.

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