Financial Times FT.com

Investors turn the screw on buy-out groups

By Henny Sender in New York and Martin Arnold in London

Published: December 7 2008 23:16 | Last updated: December 7 2008 23:16

Some of the world’s biggest buy-out groups are coming under pressure from cash-strapped investors to reduce their commitments after Permira’s unprecedented 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 Chapter 11 bankruptcy filings, or Terra Firma, which is struggling to turn round the EMI music group.

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