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As a public response to a perceived market failure, several governments have set up programs to channel equity finance to capital constrained but high potential, young enterprises.
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In Kohlberg, Kravis's case, the firm could end up having billions of dollars ready to be channeled into equity, but no obvious source of subordinated debt, which entails less risk than equity but more risk than secured bank loans.
Money from trade surpluses is channeled into equities and bonds worldwide.
In Clear Channel the private equity firms could exit the deal at any time by paying $500 million.
On Tuesday, U.S. radio operator Clear Channel and private equity outfits, Thomas H. Lee Partners and Bain Capital, agreed to a lower sale price of $17.9 billion or $36.00 per share of the radio company.
NBC bought The Weather Channel with private equity firms Blackstone and Bain Capital last summer.
The strong common effect for liquidity and diverse effects for R&D suggest that the availability of technological developments might be more localized than exit channels for private equity investments.
We saw this time and again in buyouts involving Huntsman, Penn National Gaming, Clear Channel and other private equity deals which either failed or, if the targets were lucky, were renegotiated when the bidding private equity firm tried to walk away.
Deutsche Bank also can channel money to private equity funds, which pool together funds from private clients who are willing to put in $1 million or more and lock up their money for as long as ten years.
We investigate the relative importance of exit channel liquidity in private equity investments at different stages of a firm's development.
During his five-year reign, BBC Worldwide has expanded with own-brand channels, overseas production outfits, equity stakes in independent TV producers and its controversial purchase of a 75% stake in travel guide publisher Lonely Planet.
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