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Siris Capital Group managing director Peter Berger on the fiscal cliff and private equity industry.
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What -- fiscal -- pushing private equity firms to take a wait and see approach as they sit on piles of cash.
Robert Gray joining us now an exclusive interview once it takes to get them off of those sidelines rob.
Yeah that's right John -- with Peter Berger is the founder management -- serious capital group and Peter thanks so much for joining us you guys actually raise more money.
Then -- had advertised 650 million bucks in the latest round congratulations on that I think you for joining us.
Listen fiscal -- how's this affecting someone in your world the private equity -- -- you sit on this pile of cash and you look out to 2013.
You don't know what the tax rates are going to be a lot of uncertainty.
How do you plan for the.
Twelve I don't think private equity is any different than anybody else out there we all want to see what's happening you've.
Heard a lot about you've seen in the shows here about the business leaders trying to get the congress and get some lament -- -- us.
I think people have a real concern that we're not gonna -- kinds of solutions we really need in the longer term and so that's held off.
Investing in new businesses as well as the just the whole nature of the economy to date.
What's been happening in Europe right and so until all this people believe they'll be resolution and -- -- resolution looks more favorable to them.
They're gonna -- on making decisions around investment.
-- clearly we're not expecting activity before the end of the year it's almost December anyway historically pretty -- time.
And a lot of activity in the middle market that's where you guys are sub 500 million dollar deals in the third quarter you citizen sort of an anticipation.
Of the cliff situation so as we look to next year taxes again going up as soon as we sit here right today -- Money's cheap that's pumping cash yen will we still see deals if taxes do go up or is that gonna put the brakes.
Funding blinding you hear a lot of things back to taxes intact or not and the middle market is more severe.
And most of those are run by entrepreneur doors and frankly having gathered dividend taxes jump up to 43 and a half personal tax as it's ever go up.
That's important we -- a lot of those activities.
You've also seen a lot of big dividend payments right and I think that's gonna continue through the end of the year if he hadn't planned to sell.
Before today you're really not gonna get anything done before the end of the year if you haven't planned to financing you're not gonna get that done either.
You know there's a lot of cheap money out there but the reality cheap money means slow growth and people are so worried about growth if we look at.
The market we've seen some pullbacks here as a markets but the reality is for us in the way we invest it's really driven in either specific industries.
Much more of a fundamental approach and we think over longer term we can get the value and so timing isn't necessarily as important to us.
Quite frankly even taxes because most of our money comes from institutions are State's pension funds etc.
that really are in different the taxes they don't pay any.
And my obligations it to them not to myself so as a result my behavior can be a little different.
Alright Peter Berger for the founder managing director answers capital group thanks so much for.
Joining us and Sheryl Dennis sending it back to you all right Robert Reich thank you very much that in -- mail --
