PRINT THIS PAGE The story of evolving risk/return tradeoffs
18/06/2002. Source:Woodward & Arnstein Capital Partners. David Woodward and Peter Arnstein
Will we ever see a return to 40 per cent IRR and 5x returns – a benchmark by which success was measured prior to the recent downturn? David Woodward and Peter Arnstein of Woodward & Arnstein present a hypothetical model in response to this question, to better understand how the financial landscape has affected mezzanine and equity rates of return.
The buy-out market is facing a challenging time, exemplified by the low volume of transactions completed in 2001. Although deal flow is beginning to pick up and many industry players are beginning to show signs of cautious optimism, the heady days of 2000 would appear to be an anomaly.
Copyright © 2002 Woodward & Arnstein Capital Partners
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Woodward and Arnstein were most recently co-heads of GATX Capital's Mezzanine Investment Program. They are currently seeking an affiliation with a financial institution that would allow them to recreate the successful business they had built for GATX Capital. They can be reached in San Francisco at (415) 922-9421.
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