Bear Stearns Bomb Blow To PE
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03-25-2008 | Source: Hedge Fund Daily
Add European private equity bankers to the list of parties disappointed by the fall of Bear Stearns. According to Financial News, the fall of BS and subsequent sale to JPMorgan Chase has dashed hopes of what was to be an expected Bear Stearns’ European expansion this year to infuse liquidity into the continent’s buyout market. In fact, according to FN, Bear Stearns had made major hires in preparation for the move – Mark Goldstein as co-head of European investment banking and Michel Peretie as its first European CEO. “The sale of Bear Stearns to JP Morgan has spooked people,” a financial-sponsor co-head at a competitor told FN. “We were hoping they would enter the market and provide financing for my clients to do deals, and the collapse also brings systemic risk of financial meltdown.” All may not be lost, however. While it is too soon to tell, some observers suggest that JPMorgan could spin off BS’ private equity unit, Bear Stearns Merchant Banking and its affiliate Bear Growth Capital Partners.