With their big paydays and bigger egos, private equity moguls came to symbolize an era of hyper-wealth on Wall Street.
Now their fortunes are plummeting.
Celebrated buyout firms like the Blackstone Group and Kohlberg Kravis Roberts & Company, hailed only a year ago for their deal-making prowess, are seeing their profits collapse as the credit crisis spreads through the financial markets.
Investors fear that some of the companies that these firms bought on credit could, like millions of American homeowners, begin to buckle under their heavy debts now that a recession seems almost certain. The buyout lords themselves suddenly confront gaping multibillion-dollar losses on their investments.
-- OR --
Read more about the tough times of Wall Street's buyout lords.
-- OR --
Read about Blackstone's $170 million loss in quarter four.