3/3/2010

With market volatility tripping up initial public offerings, private-equity funds are increasingly selling their portfolio companies to one another in "secondary buyouts." This is a good deal for the funds but not necessarily their investors because there is a big risk of overpayment, according to The Economist. "Once a business has been spruced up by one owner, there should be less value to be created by the next," The Economist notes.

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