Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – Widely followed financial journalist Daniel Primack, writing at Private Equity Hub, makes some interesting points that entrepreneurs and startup companies should check out.

Valuations are surging on potential investment opportunities and other M&A possibilities, which Primack believes is a reason why there is such a huge “overhang” of private equity funding of more than $400 billion available.

“Private equity firms typically generate out-sized returns from post-recessionary markets because there is an abundance of bargains, which can be easily exploited. Buy low, sell high,” Primack wrote.

“This year, however, valuations rebounded much faster and stronger than anyone expected. So much so, in fact, that some PE pros are concerned that they’re trapped inside of a mini-bubble.”

Primack quotes one PE executive as saying: “We’re between a rock and a hard place. Either we keep not investing — which means we ultimately hand back capital — or we stay, fight and pay a bit too much. Even some of the deals that began as proprietary have become competitive.”

Adding to the wealth of money pursing deals is the fact that U.S. companies have $1.84 trillion in cash, Primack noted in acknowledging a Wall Street Journal report.

Lots of money chasing deals with valuations up – that could mean good news for startups wanting to raise more money – or cash out.

for the details.

Get the latest news alerts: at Twitter.