Europe Pension Fund Capital Rules Scare Private Equity

Law360, New York (January 6, 2012, 7:23 PM EST) -- Private equity firms are warily watching European financial reforms under discussion that could steeply increase capital requirements for pension funds, a move that would likely deprive private equity players of a crucial source of investment money.

Under the possible rules, Europe could force its pension funds to have more than $1 trillion in extra cash as part of financial reform efforts, possibly spurring them to exit existing investments, according to industry watchers.

The move is part of an effort aimed at avoiding another financial calamity of...
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