Private Equity in the Driver’s Seat
By BankersBall on Oct 27, 2005 in Private Equity, Salaries
Ever feel trampled on, used and abused … like you mean nothing? Apparently, you’re not alone. Legions of i-bankers are groveling at the fount of P.E. money.
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And it doesn’t look like it’s going to change, anytime soon. The Wall Street Journal reports that private equity firms are now responsible for 25 percent of a given investment bank’s revenue, up from 10 percent in the late 1990s.
As Michael Klein, Citigroup’s chief executive officer of global banking, tells the Journal: “The private-equity firms have become the gas pedal, the brake and the steering wheel of the public-equity markets.”
Ruh-roh!
One private equity insider tells BankersBall that whenever his workload has piled up and it’s Friday night, he just rings up the hapless bankers.
The only downside: sometimes they’re “incompetent.”



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