Monday, September 27, 2010

PEU's $600 Billion in Dry Powder



Private equity underwriters (PEU'S) have $600 billion in cash, partly from recent debt offerings but mostly from monetizing affiliates via IPO's or outright sales.  They may put that money to work in non-PEU segments of the shadow banking system, hedge funds and/or proprietary trading desks.  The "Great PEU Cash In" generated billions to buy financial cash cows.