Collapse of large private equity firm 'inevitable' - papers 7 Nov

The warning came as the City regulator blew a hole in the culture of secrecy of private equity by demanding UK banks disclose their financial exposure to highly leveraged buyouts (LBOs), says the paper. Hector Sants, managing director of wholesale markets at the FSA, said such a default was inevitable but pointed out small shocks were healthy for the private equity market, which has been accused of piling up too much debt on company balance sheets. Sants was launching the results of an eight-month inquiry into the private equity industry, which demanded banks disclose the default rate...