September 29, 2022


  • Private equity firms have about $2.5 trillion in cash sitting on the sidelines.
  • Once stock market valuations settle, private equity firms are expected to rush in and start buying.
  • Here are some of the Wall Street bankers to call when the shopping spree begins.

Company valuations have taken a hit this year, especially technology company valuations. While that’s bad news for some closely watched corners of Wall Street, including bankers taking companies public, it could lead to more business for other types of traders.

Enter the “financial sponsor banker,” Wall Street’s key relationship banker, tasked with standing by private equity firms when they take companies public or bid for companies they want to take private.

Private equity firms currently have $2.5 trillion in cash waiting to be deployed, according to Morgan Stanley. And with valuations of even strong companies falling, they are “licking their chops” on buying power, according to a venture capitalist who was not authorized to speak on the record.

It could also mean big business for funding bankers, some of whom are so close to their clients that they work out of their offices, industry insiders said. Private equity firms are just waiting for share prices to settle — and for company boards to support the idea that a takeover might just be the best option for shareholders.

When that happens, these are the bankers to call.



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