We've noted that the resurgent stock market has the private equity industry giddy with hope. Kohlberg Kravis Roberts got a lot of attention when it became clear it was planning an IPO for Dollar General. Other companies have similar plans for their portfolio companies. We could also see the likes of HCA, First Data and others on the IPO block.

The issue here is what the market now values when it comes to these exits. In the case of Dollar General, part of the proceeds will be used to pay $200 million special dividend. We can assume other private equity investors will want a similar payout. Many companies will also be using some of the proceeds to pay down their cringing debt burdens. Which, as Breakingviews notes, doesn't leave a lot left over to finance growth in a tough economy. We'll see if investors are ultimately willing to change the game.

For more:
- here's the article

Related Articles:
Leon Black: Back in the buyout game
Big banks and private equity: Partners again
Where are the deals?
The meaning of KKR's brewery deal