Private Equity Moguls See Fortunes Plummet

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.

Keep Reading

-- OR --

Read more about the tough times of Wall Street's buyout lords.

-- OR --

Read about Blackstone's $170 million loss in quarter four.

Comments

[dadw5boys]

EVERYONE BETTER CHECK IF THEIR RETIREMENT PLANS ARE INVESTED IN THESE LOW INTEREST HOME LOANS.

REMEMBER HOW THE TEXAS TEACHER RETIREMENT FUND LOST SO MUCH WITH ENRON!!!!!

SO PEOPLE COULD NOT EVEN AFFORD TO RETIRE AFTER THAT.

[gcallaghan]

Got sooo-ooop?

[FreedomCorpse]

The firms may be struggling but the players in them won't be, they already moved their personal fortunes elsewhere, don't let them fool ya.

[OilWarsDotCom]

Don't worry, bush and his gang of corporate killers will bail them out - can you gues who will pay for it? Can you guess who paid for the savings and loan deal of the 80's?

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around [the banks], will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

[UNCLEJOE]

The Federal Reserve Bank (FED) has been stealing homes and independent banks since 1913.
"If the public knew what the FED was about, there would be riots in the streets the next day." Henry Ford Sr.

[bola47]

work hard my whole life. see my profit sharing disappear because of these buyout moguls. my 401k value dropping like a rock. let them try and live on social security and see how they ruined everyone's life. it must be tough living on park avenue and having a 25 room house at the beach. f--k em!

[javaman]

so these insta millionaires are having a rough time of it, huh?

well, tough shit. what goes up really fast based on bullshit, comes down with a loud splat.

[nomoredead]

Maybe Uncle Sam could lower their tax rate to 10% instead of 15 %........

[Sundialsvc4]

I rather seriously doubt that any of these ladies and gentlemen will soon find it necessary to acquire a taste for biscuits.