Andy Kessler on private equity.

• Author: Rees, Matthew
• Position: Private Equity - Brief article

"Private equity funds raised $221 billion last year, up from $33 billion 10 years ago. There are now over 170 private equity funds with more than $1 billion in assets. The value of deals done last year was $475 billion, up from $37 billion five years ago. Most of it was taking public companies private--Equity Office, HCA, Harrah's Clear Channel, and on and on."

"What's fueling the boom? With the Dow over 13,000, it's not like there's lots of cheap companies just begging to be bought and turned around. Rather, the world has been awash in cash. The money supply has been growing like a weed at the same time that the federal deficit is shrinking--$148.5 billion...