Ernst & Young Finds Private Equity Houses May Be Targeting Mining

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Ernst & Young asserted in their report, "Mining Is Now the Time for Private Equity," that mining management is "behaving more astutely in limiting capacity expansion and future overproduction. As a result, normal supply/demand economics are being established."

In a recently released report, Ernst & Young Global Mining and Metals Center declared that the mining sector, which used to be of little interest to private equity houses, may now be under reconsideration as a private equity target.

Ernst & Young asserted in their report, "Mining Is Now the Time for Private Equity," that mining management is "behaving more astutely in limiting capacity expansion and future overproduction. As a result, normal supply/demand economics are being established."

"Short-term cash returns are potentially higher than acquisition prices would suggest, making the exit a less critical part of the overall return to private equity investors," the financial consultants suggested. "Coupled with the availability of IPO, the opportunity for private equity to make a target return on mining investments is greater than ever before."

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