Quote:
Originally posted by Mmmm, Burger (C.J.)
More free cash for more investment. These guys aren't consuming most of the boo-coo dollars they pull in--they're plowing it back into the market. That's the other major point of low k-gains.
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NO they aren't. They are still puting in the 1% of equity they have always put in, and they are getting a return on that equity investment. The funds are getting bigger because (i) more institutions are investing in PE and (ii) the funds are using more leverage.
