CNN Money: Private Equity has best start since 07

According to new data from PitchBook, private equity is having its strongest year since 2007 in terms of sales and IPO’s due to an improving economy. The private equity business model emphasizes long term growth by strengthening companies and increasing their value.  Private equity firms sell or bring firms public once they have accomplished this goal.  CNN Money reported on the new data:

  “What you’re seeing is the confluence of an improving economy, pretty strong debt markets and strong appetite among sellers and buyers,” said Gordon Pan, managing director at Baird Private Equity, which manages $3 billion.

 Thanks to this year’s market rally, buyers and sellers appear confident about the pricing of deals.  And banks are once again facilitating acquisitions by providing the debt financing.