LBO Funds Display Immunity To Greek Sovereign Crisis

While one could have expected Greece's financial woes to result in worse prospects for European leveraged buyouts (LBOs), this scenario has not prevailed in 2010. After all, LBOs are based on private equity firms borrowing to pay for part of an acquisition by using the target company's cash flow to repay lenders and by loading it with debt. One would expect fears of sovereign debt default to impact corporate lending, especially for LBO funds from the countries at risk of default. Yet on the contrary, it seems that the revival in LBOs which we were forecasting in 'Easy Corporate Financing:

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