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By Theo O’Brien
Theo O'Brien is the author of Private Equity Blogger and the 20,000 member Private Equity Investment Group network. This book is a collection of over 350 free blog articles. This E-Book will be updated frequently with new articles and in a more accessible format. Private Equity Blogger will continue to expand as a resource for those interested in buyouts, venture capital and all other areas of private equity.
The Federal Deposit Insurance Corp proposed tough guidelines for private equity firms to buy failed banks. The FDIC announced Thursday a plan that calls for private equity groups to meet strong capital requirements and commit to long-term investments, in order to purchase the collapsed banks. The proposal requires private equity groups to consistently maintain strong capital in the banks, "specifically a Tier 1 leverage ratio of 15 percent, for three years. They would also generally have to maintain the investment in a bank for three years." Additionally, private equity groups must provide a "contractual cross guarantee," in which a firm that owns two banks allows the healthier institution to provide aid for the weaker. Private equity groups would also be discouraged from lending credit to their own investment funds, affiliates or portfolio companies. Furhermore, private equity groups owning banks would need to major disclosures about their ownership structure, giving regulators greater insight as to who is running the investment. Bank regulators on the FDIC's board argued openly over the guidelines with some officials saying that such tough measures will only scare off private equity investors, a much-needed source of capital for troubled banks. While alternative investors may be the saving grace for the banks, as traditional sources of capital have failed to rescue them. But bank regulators are nervous that allowing private equity groups to buy banks may be less secure than with traditional investors that are subject to strict regulation by the SEC. Yet other regulators, like Comptroller of the Currency John Dugan feel that opening up to private equity investors will help the banks. He says, "I do fear that the current articulation of the proposal has standards that go too far. There is real money and real capital that can provide savings to the deposit insurance fund." On the other side of the fence are those who defend the strict guidelines, like FDIC Chairman Sheila Bair. She argued that the requirements are necessary for ensuring the stability of the banks but admitted, "I'm not sure we have it right here, but we do have a solid document." Private equity firms have already started to move into the banking sector. Carlyle Group, Blackstone Group (BX.N), WL Ross & Co. and Centerbridge Partners decided to invest $900 million toward rescuing Florida's BankUnited. Quotes from Reuters
Tags: Private equity banks, private equity FDIC, private equity investing in banks, alternative investments in banks, banking regulation, FDIC Regulation private equity, buyout FDIC banks Link to This Resource: FDIC Private Equity http://privateequityblogger.com/2009/07/fdic-private-equity.html
Private Equity Service Provider Directory Private Equity Service Provider Directory
Below please find a list of firms which provide services within the private equity industry. Contact Theo O'Brien at Theo@PEblogger.com to be added to this directory. Auditors & Accounting Services Fund Administration Services Marketing and Sales Consultants & Resources IT Consultants & Technology Services Attorneys & Lawyers
Tags: Service provider directory, Private Equity Service Provider Directory, private equity attorneys, private equity accountants, private equity auditors, private equity marketers Link to This Resource: Private Equity Service Provider Directory http://privateequityblogger.com/2009/07/private-equity-service-provider.html
Mechanical Trading Systems by Richard Weissman Mechanical Trading Systems
Richard Weissman introduces the reader with a process-driven approach to trading. In addition to the development of mechanical trading systems, the significance of trader psychology is discussed throughout the book. Mr. Weissman calls it the framework of ―reprogramming the trader.‖ He provides a clear understanding behind the conceptual development of mechanical trading systems as well as demonstrates possible mistakes by system developers and ways to avoid them. His main lesson for the reader is that flexibility enables traders to succeed in all kinds of trading environments. Dispelling Myths and Defining terms In this chapter the author emphasizes more on mathematical technical analysis than classical technical analysis. He also explains why mathematical way of analyzing is an ideal component for mechanical trading systems than fundamental or interpretive analysis and thus claims this as an apt method for generating profits Mathematical Technical Analysis Introduces the two basic flavors of mathematical technical indicators which are mean aversion and moving averages. The chapter also explains how these indicators can be transformed into comprehensive trading systems through the inclusion of various risk quantification parameters such as volatility bands and percentage value of trading instrument. Trend Following Systems 4|Page
By going through this chapter one can figure out how even a simplistic of the systems can produce a respectable rate of return while enduring relatively moderate worst peak-to -valley drawdowns in equity. The reader can also understand why certain asset classes tend to trend more than others Mean Aversion Systems Examines why certain asset classes display a greater propensity toward mean aversion than others and includes examples of no directionally biased mean aversion systems and mean aversion systems that employ a trend following filter. Short term Systems One can understand what short term volatity really means by going through the concepts of swing and day trading. It helps the reader to explore what unique personality traits are needed to overcome the same. Knowing Oneself Provides the reader a comprehensive review of major categories of trader types (trend following, mean aversion) as well as the typical time frames (long term, day trading, swing) in which they operate. Helps the reader to identify the flaws in trader psychology. Once the reader has identified their innate trading personality, a step by step transformational process via utilization of different types of mechanical trading system and psychological tools is outlined System Development and Analysis This chapter examines some of the benefits and limitations of mechanical trading system, optimization studies, development of trading system philosophy statements and the pros and cons of various methodologies for measuring trading system performance. It also looks at the downside to system development and how to resolve these problems: data curve fitting, parameter curve fitting, data integrity issues and slippage. Price Risk Management Discusses the various price risk management methods such as stop loss and volumetric price risk management .Coverage of volumetric price risk includes both Martingale and anti-Martingale position sizing techniques such as frictional position sizing and value at risk. Other techniques covered include the study of worst-back tested peak-to-valley equity draw downs, static volumetric tests, stress testing and system losses as a percentage of total equity under management. Finally the chapter examines the psychological aspects of price risk management and shows how utilization of mechanical trading systems can aid in fostering confidence during drawdowns. Improving Rate of Return In this chapter the author discusses how can one improve the overall rate of return by using these three methods · Addition of various low or negatively correlated assets such as foreign exchange, crude oil and futures · The staggering of parameter set trigger levels for the same system · Combination of mean aversion and trend following systems within a single trading account 5|Page
Discretion and System Trading This chapter examines how a trader‘s knowledge and experience can be utilized within the framework of mechanical trading system Psychology of Mechanical Trading Here the author relates the link between mechanical trading systems and transformational psychology, explaining in detail issues such as self worth, single-mindedness, discipline ,nonattachment to result‘s of one‘s actions and realizing of old emotional patterns. Related to Mechanical Trading Systems by Richard Weissman
Tags: book review, Mechanical Trading By Richard L.Weissman, Mechanical Trading systems, Richard L.Weissamn, Technical analysis Link to This Resource: Mechanical Trading Systems by Richard Weissman http://privateequityblogger.com/2009/07/mechanical-trading-systems-by-richard.html
Due Diligence Experience Due Diligence Experience Value of Experience in Private Equity Due Diligence
Carried Interest has a great post on the value of experience during due diligence. While private equity due diligence has made great strides in recent years, with the current package including much--if not all-of the following aspects: Market and strategy analysis by a consulting firm to test and validate the commercial thesis behind the investment Financial and tax review by an accounting firm Legal review 6|Page
By bringing a person with years of experience in buyouts.html 7|Page . Or warns you that a major supplier has been bought by the competition and will probably cut off distribution. I think it's hard to understate the importance of returning to your basic due diligence in addition to all of today's due diligence. private equity firm due diligence. Tags: Private equity due diligence. due diligence experience Link to This Resource: Due Diligence Experience http://privateequityblogger. and so on. interview customers. or hold question and answer sessions with management. Private Equity Law Firm. Or remembers that this particular company always had a problem keeping good sales reps.com. especially that which is outsourced to other specialized consulting firms. As GP of Carried Interest writes: McKinsey may do a great job of mapping out the market structure. Private Equity Legal Help. Tags: Private Equity Attorneys. Private Equity Startup Resources.com/2009/07/private-equity-attorneys-law-firms. While such a due diligence package is more effective than what used to pass for investigation. you supplement your due diligence research with another perspective on the deal. But there's nothing like having a recently retired CEO by your side when you tour the factory. you cannot overlook the value of having an experienced veteran of the private equity industry considering the deal. private equity research. Private Equity Fund Formation. private equity experience.Insurance analysis Environmental risk assessment Management team background checks and capability review by an HR consultant. analysing segment profitability. He'll be the person who notices that the overhead cranes in the workshop belong in a museum and need to be replaced immediately.com/2009/07/due-diligence-experience.html Private Equity Attorneys & Law Firms | Lawyers Private Equity Attorneys & Law Firms To add your firm to this directory please email us at Theo@peblogger. Private Equity Lawyer Link to This Resource: Private Equity Attorneys & Law Firms | Lawyers http://privateequityblogger. testing growth assumptions.
com. private equity sales. Tags: Private Equity Technology solutions. private equity software companies. private equity software tools. private equity investor directory. private equity back office products. private equity marketing tools.html Private Equity Fund Administration Services Private Equity Fund Administration Services To add your firm to this directory please email us at Theo@peblogger. private equity software.com/2009/07/private-equity-marketing-and-sales. private equity investors.com. Tags: private equity marketing.IT Consultants and Technology Services IT Consultants and Technology Services To add your firm to this directory please email us at Theo@peblogger.com. private equity marketer Link to This Resource: Private Equity Marketing and Sales Resources http://privateequityblogger.com/2009/07/it-consultants-and-technology-services. 8|Page .html Private Equity Marketing and Sales Resources Private Equity Marketing and Sales Resources To add your firm to this directory please email us at Theo@peblogger. private equity IT Link to This Resource: IT Consultants and Technology Services http://privateequityblogger. private equity investor databases.
" a nod to his service with the U. private equity accounting firms. private equity fund independent administration. Centerplate Inc. Tags: private equity auditors. private equity operations outsourcing Link to This Resource: Private Equity Fund Administration Services http://privateequityblogger. David Robinson was a dominating presence during his 14 years as the San Antonio Spurs' center and now he has entered the private equity industry. private equity accounting services. Junior Grade. Robinson earned the nickname "the Admiral.Tags: private equity fund administration. private equity auditing.com. a private equity group that just acquired its first company. private equity fund administration services.html Admiral Capital Admiral Capital NBA Star David Robinson's Admiral Capital Group One of the great players in the NBA heads Admiral Capital.html Private Equity Auditors & Accounting Services Private Equity Auditors & Accounting Services To add your firm to this directory please email us at Theo@peblogger. An essential aspect of business is presence and standing at 7 foot 1 inch with two NBA Championship 9|Page . Navy--though he actually held the rank of Lieutenant.com/2009/07/private-equity-auditors-accounting. accountant for a private equity firm Link to This Resource: Private Equity Auditors & Accounting Services http://privateequityblogger.com/2009/07/private-equity-fund-administration.S. His private equity firm adopted his nickname and Admiral Capital Group even adheres to what it calls "the Admiral Approach" toward its business.
Gerald Magpily and George White David Robinson will be inducted into the NBA Hall of Fame in September of this year. which invests in under-served urban areas. which was founded by billionaire industrialist Jon M. . Huntsman and former Bain Capital executive Robert C. Former New England Patroits quarterback Drew Bledsoe founded Bledsoe Capital Group. admiral capital group. Tags: private equity athletes. David Robinson is one of several professional athletes that have put their salaries to work in private equity. he must be a towering figure in negotiations. The Deal adds this selection of notable athletes that made the transition to private equity: Former NBA Hall of Famer Earvin "Magic Johnson is one of the most successful. david robinson admiral capital. admiral capital centerplate Link to This Resource: Admiral Capital http://privateequityblogger. with his private equity fund Canyon-Johnson Urban fund. private equity david robinson. too. Former San Francisco 49ers quarterback Steve Young was a co-founder of private capital firm Sorenson Capital. which focuses on small-to-middle-market buyouts. For other private equity tracker profiles follow this link. robinson buyout. Most pro athletes want to make a difference in the community and a profit. Gay.rings. He's currently a managing director at Huntsman Gay Global Capital.com/2009/07/admiral-capital. along with Michael Jordan. a venture capital and private equity group primarily focused on emerging clean technologies.html Private Equity Business School Private Equity Business School Private Equity is Popular Choice for B-School Grads 10 | P a g e . private equity seems to answer both desires.
In a survey of five leading MBA schools. With so many graduates from top business schools flooding the industry. the Wharton School at the University of Pennsylvania. as well as the high-caliber of professionals working at private equity firms. For more information about a career in private equity.S. Stanford's Graduate School of Business showed a corresponding pattern with a 10% increase from 2003 to last year's graduates and only a 1% lift for investment banking. when only 8% of grads chose private equity. Stanford Graduate School of Business. Other reasons I have heard for choosing private equity are the challenge and hands-on experience you receive working in the industry. Top private equity firms Kohlberg Kravis Roberts and Blackstone Group had high proportions of MBAs among their senior staff too. please see our resource Private Equity Jobs Related Articles to Private Equity Business School 11 | P a g e . reveals that 52% of the executives at the partner level or above held an MBA. the talent at big and small private equity and venture capital firms is noticeable.The private equity job market is highly competitive and while few firms explicitly require applicants to have an MBA. The rise in graduates selecting investment banking was much lower with only a 2% uptick over the same time period. and Insead. it certainly improves your chances of being hired.K.'s London Business School. the U. The study looked compared graduates from Harvard Business School. with 61% and 63%. located in France and Singapore. That more than half the executives hold a Master's in Business Administration is pretty conclusive evidence of the value of graduate-level education. Another survey by Financial News showed that private equity is an increasingly popular destination for MBA graduates. A recent survey of private equity firms in Europe and the U. compared to 21% of last year's graduates. respectively. the number of graduates taking jobs at private equity firms has more than doubles over the last six years. Apax Partners OKC held the highest percentage of partners with MBAs at 77% of its partner-level executives. The number of Harvard MBA graduates moving into the private equity and venture capital industry rose significantly from 2003. The results of the survey suggest that graduates believe they can make more money working with a private equity firm.
private equity graduates. Our team has been working to collect and organize a professional directory of private equity contacts. please send an e-mail to Theo@peblogger. If you would like to have your private equity firm listed in the directory. Even those who are established in the private equity world will benefit by adding this database to their list of contacts. Private Equity Firm Database. Tags: Private Equity Directory. Who Should Purchase the Private Equity Directory? If you are new to the private equity industry.com. private equity mba graduates. private equity students. private equity mba schools. The Private Equity Directory is a valuable asset to any private equity professional. we are launching a Private Equity Directory of firms. purchasing the Private Equity Directory is essential for those looking to connect with private equity firms for networking or business proposals. private equity news. Private Equity Groups Database. business schools for private equity Link to This Resource: Private Equity Business School http://privateequityblogger.html Sri Lanka Investments Sri Lanka Investments 12 | P a g e .com/2009/07/private-equity-business-school.Private Equity Jobs Private Equity MBA Private Equity Positions Survey Results from EfinancialNews Tags: Private equity mba. private equity business school. Private Equity Funds Database.com/2009/06/private-equity-directory. Private Equity Group Directory.html Private Equity Directory Private Equity Directory Directory of Private Equity Firms In order to expand the resources offered through Private Equity Blogger. Private Equity Firms Directory. We will be updating this blog with more information as it becomes available. Private Equity Funds Directory Link to This Resource: Private Equity Directory http://privateequityblogger.
is more fundamental.com Archives 13 | P a g e . When asked how he is adjusting to the political risk in a war-torn country he noted that over the last six years has grown faster than all the nations in the Association of Souteast Asian Nations except Vietnam (during a civil war. sri lanka capital Link to This Resource: Sri Lanka Investments http://privateequityblogger. no less). especially as much of the Asian governments‘ economic stimulus packages goes into construction projects." The Wall Street Journal conducted an interview with Mr. the demand is resistant to recession and consumption doesn‘t change much.Private Equity Investments in Sri Lanka Sri Lanka has just ended a civil war that engulfed the island nation for more than a quarter of a century. Demand for building and construction products remains strong in Asia. believes that "the Cinderella story of Asia.html Private Equity Blogger. adding value without the need of much leverage. According to Scott.com Archives Private Equity Blogger. demand for rubber is tied to Asian growth and future global growth. Like all Cinderellas. He says they will be particularly targeting institutional investors and high-net worth individuals in India. and is less tied to Wal-Mart. He does worry about what the economic policy will be though. For example. Sri Lanka is the prettiest girl although she works in the kitchen infested with rats. Demand for tea. chairman of Calamander Capital Limited. Scott also said that he is trying to attract a diverse group of investors with no more than a third of the limited partners coming from the United States and Europe. for example. If you have a cup of tea in the morning. Scott about his private equity firm's decision to invest in Sri Lanka. a private equity firm is seeking to raise $150 million for a fund investing in Sri Lanka. Despite the turmoil. sri lanka economy. He added that the Tamil Tiger rebels have been mostly wiped out and therefore pose no threat of reviving the civil war. as India's economy is closely connected to Sri Lanka's.com/2009/06/sri-lanka-investments. investing in sri lanka." He believes he can create value because almost every company in Sri Lanka is inefficient and poorly capitalized. Scott believes Indian investors have a unique understanding of Sri Lanka's story. He justified the choice to invest in commodities saying: "The demand for soft commodities in Sri Lanka is dependent on Asian demand. His exit strategy relies on trade sales to bigger companies in the Asian region. Mr. private equity sri lanka. For the whole interview see the WSJ Story Tags: Sri Lanka investments. sri lanka private equity investments. He believes that his private equity firm can bring these underdeveloped companies from the 19th to the 20th century. Roman Scott. some firms are using machinery that is a century old and even powered by steam engines.
Jul 2009 (5) Jun 2009 (16) May 2009 (13) Apr 2009 (10) Mar 2009 (14) Feb 2009 (7) Jan 2009 (11) Dec 2008 (13) Nov 2008 (29) Oct 2008 (29) Sep 2008 (33) Aug 2008 (32) Jul 2008 (11) Jun 2008 (4) May 2008 (2) Feb 2008 (1) Nov 2007 (2) Oct 2007 (5) Sep 2007 (2) Aug 2007 (2) Jul 2007 (8) Jun 2007 (11) May 2007 (2) Apr 2007 (3) Mar 2007 (2) Feb 2007 (3) Jan 2007 (2) 14 | P a g e .
Luckily. it is also a financial loss for a couple private equity firms." These types of expenses added to the debt Jackson amassed over the years. Despite a restructuring of his finances settling the dispute with Fortress.html Michael Jackson Private Equity Michael Jackson Private Equity Michael Jackson's Dealings with Private Equity Firms When looking through the news today. Colony Capital. Private Equity Resources Link to This Resource: Private Equity Blogger. Jackson's financial troubles persisted and it seemed that Fortress would foreclose on Neverland Ranch. decided to purchase the loan from Fortress. Fortress had similar problems with Mr. Private Equity newsletter.com/2009/06/private-equity-bloggercom-archives. Michael Jackson was of course known for his eccentricities and he is also known to have spent large chunks of his fortune on such extravagances as the star's private amusement park Neverland Ranch and "computerized Marvel comic-book characters bigger than life. Private Equity Articles. While the passing of the pop legend is a loss to the music world. Neverland Ranch would have been foreclosed. "The Pop Star and the Private Equity Firms" in the New York Times. However. the private equity firm Fortress Investment purchased some of Michael Jackson's loans that he had borrowed from Bank of America and which he had been failing to repay. I was surprised to see the headline. In 2003. Although Neverland Ranch is a valuable piece of real estate that has shifted hands as a result of his financial troubles. another private equity firm. Jackson and in the winter of 2005 the firm threatened to call the loans because of his delinquency. had a private equity group not stepped in to purchase the debt. Jackson's greatest wealth--and therefore his 15 | P a g e . Up until the end of his life.com Archives http://privateequityblogger.Dec 2006 (3) Nov 2006 (3) Oct 2006 (3) Sep 2006 (2) Aug 2006 (3) Jul 2006 (3) Jun 2006 (1) Tags: Private Equity. Michael Jackson continued to accumulate millions of dollars in debt. This action prevented an auction of Michael Jackson's property.
best collateral--is his stake in Sony/ATV Music Publishing. alternative investment marketing 16 | P a g e . capital raising for private equity funds. michael jackson foreclosure. Full NYT article Tags: michael jackson neverland ranch. hedge fund marketing audio file download. He owned a massive portfolio of thousands of songs. This file may be uploaded to your Ipod. To receive the download link for this resource please complete your name and email address below: Top of Form Capital Raising Resource Alerts Name: Email: Submit Bottom of Form Tags: private equity fund marketing. michael jackson fortress Link to This Resource: Michael Jackson Private Equity http://privateequityblogger.html Capital Raising Strategies and Best Pracitces | MP3 Audio Download Last week I gave a speech entitled. richard wilson speech. private equity investors. Please always consult with expert compliance and legal advisors before putting in new marketing strategies or materials into place. saved to your computer or emailed to others on your team. michael jackson investments. Today we are making the first 25 minutes of the speech available via MP3 Audio File Download. "Top 5 Fund Marketing Best Practices" in Boca Raton at a conference put on by Marcus Evans. michael jackson colony capital. including more than 200 by Beatles Paul McCartney and John Lennon.com/2009/06/michael-jackson-private-equity.
UL] KKR $1. According to Thomson Reuters. others $1.com/2009/06/capital-raising-strategies-and-best.html Top Private Equity Deals Top Private Equity Deals The Top Five Private Equity Deals of 2009 The first half of 2009 was particularly disappointing for those in the private equity industry.6% of overall Mergers & Acquisitions activity this year. Private equity dealflow plummeted to a 17-year low from January 2009 to the end of this month. the lowest percentage since the first half of 1998.55 bln 17 | P a g e .8 bln IndyMac Bancorp (IDMCQ.PK) JCFlowers.4 billion--that is an 82% drop from the first six months of last year. the following is the list of the top five global deals for 2009 to date: Target Buyer Price Oriental Brewery [INTBB. The buyout business so far this year can be described by an extremely small number of deals executed and a minimal average deal size. These deals made up only 2.Link to This Resource: Capital Raising Strategies and Best Pracitces | MP3 Audio Download http://privateequityblogger. Private equity deals so far this year amount to $22.
So. Fortunately. and some LPs may contribute their network of contacts and experience to the partnership. Emphasize the idea of a partnership--after all. it's worth looking reviewing. Start Over: Reexamine the way you communicate with your Limited Partners. Either the GP wishes to improve their Limited Partner relations. Commit Your Time and Effort: If you are serious about limited partner relations then you have to incorporate this area into your routine by setting aside regular time to build the relationships. Ask yourself: "How do you communicate with them? Do you actually talk with them or is it simply a reporting function and you only actually speak with them when you need their renewed investment for the next fund?" Limited Partners will respect the fact that you are taking steps to improve your relationship so don't be afraid to directly ask them what you can do to strengthen their trust in you. but doesn't know how to go about revamping this area.Votorantim Celulose e Papel BNDES Participacoes $1.35 bln New City Residence Lone Star $1. you will do further damage to the relationship if they tell you what you can do and you ignore it. buyout deals. private equity quarter 1 Link to This Resource: Top Private Equity Deals http://privateequityblogger.1 bln Wood Mackenzie Charterhouse Capital $903. 18 | P a g e . private equity 2009. You can also benefit from hearing the LPs perspective. or the GP is damaging their limited partner relations and totally oblivious about it. 2. I've added my own thoughts on the advice: 1. Denise Palmieri at peHUB specializes in investor relations and offers her seven tips for improving limited partner relations.com/2009/06/top-private-equity-deals. Limited Partners know what you are required to do and by doing more than that minimum you are showing that you care about them and their input. even if you believe that your team is satisfying your limited partners. that is what you and your investors are--and by keeping them involved in the decisions you promote this relationship and removes some of the shroud from your operations.html Limited Partner Relations Private Equity Investor Relations Advice for Improving Private Equity Investor Relations It's often the case that General Partners are at one of two sides of the Investor Relations spectrum. Palmieri suggest going beyond required reporting and the annual meeting. top private equity deals. Take that feedback and work to address it. and keep up informal communication with your investors.2 mln Tags: Private equity deals.
" Going the extra mile with your clients can really make a difference in retaining your investors. There are a lot of factors that combine to produce poor returns to investors.com/2009/06/limited-partner-relations. Limited Partners may look past poor performance but lying about it can expand what would have been a minor setback. but that might not be the case next year and you need a strong relationship to keep those Limited Partners with you through thick and thin. 5. So show your appreciation for their investment. Any top performing fund can use a little humbling and nothing can take you down a peg as losing a valuable client because you put other aspects above LP relations. Lesson: be honest and direct with your Limited Partners.html Private Equity Green Private Equity Green Environmental Sustainability in Acquisition Valuation 19 | P a g e . private equity investors. Tags: Limited partner relations. Taking concrete steps to improve your Limited Partner relations is crucial in a time when investor confidence in General Partners is so weak. Flexibility is Survival. As Palmieri puts it. 6. 7. say you're sorry and try not to make excuses. loyalty and advice." GPs can do irreparable damage to their Limited Partners relationships by being dishonest or covering up failures. put yourself in your Limited Partners' shoes. Simply explain what happened. Be Honest and Forthright.3. but inevitably a share of that responsibility falls on you. "Don‘t play hide the ball or sugarcoat bad news. To read the full article click here. limited partnerships. It's important to balance finding new investors for your next venture and keeping your current ones happy. "Flexible relationships with mutually aligned interests are the ones that survive in all conditions. private equity institutional investors. Palmieri notes. Your fund may be doing great now. Offer Sincere Appreciation. Really. Limited Partners won't appeciate you neglecting their current committment because you're working on impressing the next group of investors. "Humility and self-reflection goes a very long way in an industry filled with uber-confidence and differentiates you from the blame-layers." Limited Partners should know that there is never a fund that will always produce high returns every quarter. The Buck Stops Here. Try imagining your reaction if a prospective portfolio company asked for those terms. alternative investors Link to This Resource: Limited Partner Relations http://privateequityblogger. The Grass is not Greener. you should never lose sight of who gave you the money in the first place. Even if your fund is bringing great returns. Although you may have other Limited Partners that you can turn to. it's often easier to work toward satisfying your existing investors and building that relationship. 4. When negotiating terms with your investors. your role as an investor in portfolio companies is similar to your Limited Partners to your fund.
buyout green. private equity environmental sustainability. Dean Nelson. private equity investment green. portfolio company green Link to This Resource: Private Equity Green http://privateequityblogger. it looks at cost savings that moves like fuel conservation or waste reduction could have. says Paul Farrow. with TPG and Goldman Sachs and completed the deal in 2007. KKR hired the Environmental Defense Fund to find ways to fix the problems. Similarly." (WSJ) Tags: Private equity green. it stands to reason that many private equity firms are promoting these types of changes in their portfolio companies. a sustainability consultant with the firm. To address the company's environmental problems. KKR led the buyout of TXU Corp. An interesting story by the WSJ adds to this that private equity groups are even taking the environment into consideration when acquiring a company. explains ―We have an investment committee process where deal teams bring ideas to the investment committee and built into that valuation process is this piece on the environment. like energy saving devices.com/2009/06/private-equity-green. chief executive of KKR Capstone.As companies move toward more environmentally sensitive ("green") initiatives.‖ KKR is incorporating environmental sustainability into its 100-day program for newly acquired portfolio companies. the firm could consider new markets for a company. buyout shops are adding an emphasis on the environmental policies of potential targets. Riverside Company considers both operational and strategic opportunities that improving environmental sustainability may provide when evaluating a possible acquisition. The increase of environmentally-conscious regulation and the uptick in environmental groups watching over companies makes a firm's green policy an essential consideration for a private equity firm examining an possible acquisition.html Venture Capital Forum Venture Capital Forum Audio from the Venture Capital Forum 20 | P a g e . One anecdote that shows how a company's "greenness" factors into valuation by private equity firms is KKR's acquisition of Texas utility TXU Corp. This shows how environmental policy is a big concern for buyout shops pre-acquisition. The company was being criticized by Texas regulators and environmental groups because of its environmental practices--notably its plan to create 11 new coal-fired power plants. "On the strategic side. In operations. From huge buyout firm KKR to the smaller privat equity group Riverside Company. private equity environment.
The conference is invite-only for technology entrepreneurs and investors. The panelists shared some interesting insights such as telling which firm they'd join if their's didn't exist. a significant number of private equity investors are planning to decrease their target allocation to private equity – 20% of LPs plan a reduced allocation in the coming year. Josh comparing troubled portfolio companies to train fires and Brad's argument that the survival of venture capital as an asset class is mostly irrelevant to his business. The report found that 37% of limited partners now report overall net returns of 16% or more from the asset class. Panelists included: Brad Feld (Foundry Group). venture capital conference. private equity investors remain committed to the asset class generally. 80% plan to maintain or even increase their target allocation in the next 12 months. The most troubling finding.html Private Equity Fund Investors Private Equity Fund Investors Barometer of Private Equity Fund Investors Three quarters of private equity investors expect distributions in their portfolios to decline in the next year. Similarly. private equity conference. but an official free agent at the time). This is the most pessimistic estimate since the Global Private Equity Barometer began surveying limited partners in 2004. private equity Link to This Resource: Venture Capital Forum http://privateequityblogger. Josh Kopelma (First Round Capital). I thought. General Partner-Limited Partner Relations One third of limited partners expect to reduce their number of general partner relationships." That compares to about 36% in previous Barometers. 84% of limited partners have 21 | P a g e . Jo Tango (Kepha Partners) and Eric Hjerpe (now with Kepha. Private equity investors expect to net considerably less returns on investments. Here is link to the audio for Venture Capital Forum Audio Tags: venture capital forum. compared with a high of 45% of LPs in Summer 2007. the expected flight of LP's from private equity is worrying for private equity firms fundraising. However. On the flip side.Dan Primack of PeHUB the audio from a venture capital forum that he moderated a couple months ago.com/2009/06/venture-capital-forum. private equity forum. was that "for the first time in years.
about a tenth of private equity limited partners are expected to default on capital commitments--with defaults concentrated mostly in North America.html Private Equity Regulation Private Equity Regulation Private Equity Council Supports Obama Regulation The Private Equity Council has issued a statement supporting the Obama administration's proposed overhaul of the American financial system. Private Equity General Partners." Also. Kohlberg Kravis Roberts & Co. Private Equity investments Link to This Resource: Private Equity Fund Investors http://privateequityblogger. seeing the poor performances by many private equity funds as a bargaining chip in negotiating terms. Private Equity Limited Partners. Council members include such leading private equity firms as. Many limited partners appear to be using the economic downturn to their advantage. Bain Capital Partners.declined to re-invest with one or more of their existing GPs over the last 12 months--almost twice the number of LPs who refused reinvesting in the summer of 2005. The Private Equity Council does not necessarily represent the views of all private equity firms but with impressive industry members it signals some support for a controversial regulatory plan. "Around four fifths of LPs believe the terms and conditions of buyout funds worldwide will become more favourable to them over the next two years. Two thirds (65%) of LPs foresee more favourable fund terms for venture funds. Private Equity Fund Investors. The Blackstone Group. This suggests a major decline of investor confidence in their general partners.com/2009/06/private-equity-fund-investors. and to protect our financial system from the kind of meltdown that has devastated the global economy. venture capital and hedge funds whose assets are greater than a undetermined amount to register with the Security and Exchange Commission (SEC). The following is the statement from the Private Equity Council: ―The goals of financial regulatory reform should be to restore confidence in financial markets generally and the credit markets in particular. Private Equity Partners. 22 | P a g e . The Carlyle Group. Tags: Private Equity Barometer. Apollo Global Management LLC. The proposed regulation requires advisers to private equity.. and TPG Capital. We believe that the Obama Administration has crafted a plan that can accomplish these objectives. For the full report click here. Although the Private Equity Council does not believe that the private equity industry creates systemic risk but it does agree to further scrutiny on private equity firms.
From Bloomberg: ―Watch out for exits also. according to Caldiera. infrastructure. This decision comes after the New York-based firm sold stakes in several companies including Brasil Telecom Participacoes SA. There are lots of investments that can be made there. known as Porto de Santos.―The plan calls for private equity firms to register as investment advisers with the Securities and Exchange Commission. The fund is interested in strategic sales. private equity obama. even though it will result in new regulatory oversight for many private equity firms. or those being sold at a discount. we also support the concept of data collection from market participants and we look forward to reviewing more detailed proposals as the legislative process unfolds.‖ Caldeira said.‖ Caldeira said. private equity industry Link to This Resource: Private Equity Regulation http://privateequityblogger. adding that the market for initial public offerings in the country dried up after dozens of companies went public in 2007. We support this proposal. Telemig Celular Participacoes SA and Amazonia Celular SA. obama regulations. financial services and entertainment. valuations have been revised. The global credit crisis has forced Citigroup to exit its primary investments in Brazil. is going to invest up to $500 million in Brazilian private equity. the operator of the Rio de Janeiro subway system. Companhia Docas do Estado de Sao Paulo. commented on the investments in Brazil.‖ Caldeira also said that Citigroup is looking at investments in Brazilian agricultural business. he said. services. but you need to watch out in terms of the preservation of the value. Citigroup is also looking at distressed companies. ―It is tough.‖ Tags: private equity regulation. ―It is a time that you need to watch out what is there. the managing director for the $3. selling its shares in firms including: Brasilia-based Brasil Telecom Participacoes. private equity regulations. 23 | P a g e . Paulo Caldeira. and Metro Rio. such as sugar and ethanol producers and mills. Those investments were made by Citigroup's Venture Capital Investment Brazil Fund.html Brazil Private Equity Brazil Private Equity Citigroup Invests $500 Million in Brazil Private Equity Citigroup Inc.4 bil Citigroup Venture Capital International fund. but it is where you can get incredible returns. ―While we and most experts agree that private equity firms do not create systemic risk. but he did not name any companies.com/2009/06/private-equity-regulation. private equity tax.
Beaupre suggests a strong ethics code. Brazilian Private Equity. Tags: Private equity Brazil. Updating your ethics policy and staying current with new regulations are key steps in keeping pace with the changing industry. It seems that greater scrutiny toward the industry is less a question of whether it will happen than it is when will it occur? Private equity has enjoyed considerable freedom until recently. has up to this point led a fairly charmed life. citigroup venture capital fund. in terms of regulatory scrutiny and media scrutiny. "that charmed life is under threat. No Brazilian firms have gone public this year. Firms were advised to reevaluate their use of placement agents now.Brazil. Brazil Venture Capital. Latin America's biggest economy. 24 | P a g e . private equity fund Link to This Resource: Brazil Private Equity http://privateequityblogger. with only four IPOs last year compared to 64 in 2007. private equity firms are advised to create a diligence file that explains how and when they met the agent." Panelists for the ethics seminar noted the significance of having a policy on placement agents. rather than waiting for regulations. but placement agents [have] not historically been something we looked at.html Private Equity Ethics Private Equity Ethics Reevaluating Your Private Equity Firm's Ethics Policy With an administration in office that seems keen to crack down on private equity and hedge funds and such high-profile alternative investment scandals as Bernard Madoff and the New York placement agent investigation. puts it "The private equity industry. Citigroup venture capital.com/2009/06/brazil-private-equity. what led them to select the agent and any expenses incurred with a particular fund. From the WSJ: General Partner Frank Angella of Grove Street Advisors LLC said his firm is reviewing its ethics policy and may well begin asking more questions of its general partners about their use of placement agents." However this may be coming to an end and Mr. who represented private equity firm Proskauer Rose LLP at an online ethics seminar.‖ Angella said. To do this. and learn to live by it so when that scrutiny comes. other states are following suit in drafting tougher rules for the use of intermediaries and private equity firms should be aware of their state's policy and required disclosure. Although the placement agent scandal originated in New York. Brazil Private Capital. you‘re ready for it. ―We focus on conflicts of interest and financial conflicts. in light of the recent probe into how private equity funds obtain funding through such intermediaries. citigroup private equity. private equity firms may do well to reexamine (or create) an ethics policy. Larry Beaupre. IPOs have declined significantly from the global credit crisis. Now is the time to get a policy in place. according to recent data.
Glovsky and Popeo PC. He advises having a "price reset" where the company is sold at a minimum price and then reconsider the valuation at another time later down the line compared to a set price index.html Private Company Valuation Private Company Valuation Private Equity Video: the Valuation Problem The problem for many private equity firms is not financing but rather it is getting buyers and sellers to accept a price. Papernik suggests. One way to overcome the obstacle. Joel Papernik. Cohn. private equity ethics code. private equity pension funds. private company future. is for sellers to sell only assets or equity rather than the whole company in the short term.com/2009/06/private-equity-ethics. in hopes that the price will rise later. private equity valuation method.Tags: Private equity ethics. private equity ethical. Ferris. private equity tips Link to This Resource: Private Equity Ethics http://privateequityblogger. Tags: Private equity valuation.html Private Equity Bank Private Equity Bank As Banks Fail. Papernik concludes that it may take as long as ten years for valuation to return to normal and dealmaking to return to what it was in the boom only a couple years ago. a partner at Mintz. This valuation problem is explained by an interview by the Deal with Joel Papernik. Levin. This valuation gap is a major obstacle in executing deals especially in the lower rungs of mergers and acquisitions.com/2009/06/private-company-valuation-private. private equity placement agents. Private Equity Videos Link to This Resource: Private Company Valuation http://privateequityblogger. Private Equity Picks Up the Pieces 25 | P a g e . private equity company value.
And even those who may have the equity to buy up the smaller banks. and that was a rough year too. like JPMorgan Chase have taken federal money and have to use their recent returns to pay back taxpayers. Perhaps the biggest barrier is the legal restrictions barring private equity firms (or any "non-financial" entity) from carrying out a 26 | P a g e . "to snap up a small bank. many small banks are being bought up by private equity groups. there are significant obstacles for private equity firms." But private equity firms are adapting by investing only once the bank has been seized and negotiating that the government carries most of the burden in loss-sharing agreements. ―the logjam has broken. and turn it into a vehicle to scoop up failed local rivals. a $4. It's not just small banks either. a rating agency. according to Moody‘s. Normally." Another factor in the uptick of private equity investment in banks is the increase in bank failures (see Economist graph below) that give private equity firms a lot of options to work with. The Economist explains the strategy.1 billion failed bank in Georgia. one could expect the larger banks to rescue the small lenders from collapse but those big banks are mostly too capital-constrained to oblige. Many of these banks still hold toxic commercial-property loans that are going bad at a disturbing rate. healthy or not. One is simply the risk involved in purchasing and investing in failing banks. It seems the floodgates have opened with the loosening of regulation on private equity firms buying stakes in banks and the "piles" of uninvested capital. for example the Carlyle Group and Lightyear Capital are close to finishing a deal for Silverton Bank. "American banks‘ loan-loss reserves are falling ever further behind actual losses and now cover just 70% of the total. Although private equity firms can take on a bigger stake in banks than they once were allowed by regulators. As Josh Lerner of Harvard Business School put it." However. Private equity firms have jumped on the opportunity.Banks have been failing at a quickening pace with already more failures this year than all of 2008.
Whether the Federal Reserve.takeover of a bank. meaning firms were investing more equity than they had raised that year. which holds the opinion that only firms monitored as banks should control a bank. Unless a firm wants to become a bank-holding company and assume the extra regulation it requires. believes buy-out firms should be considered eligible bidders if they show they can run a bank prudently and are ―good corporate citizens‖. The overhang. the gap between funds raised and equity invested. It has already handed out two. as long as regulators see to it that the firms aren't working together after the deal. They can now. which handles failed banks and is expected to release new guidelines on private-equity investment soon. The Federal Deposit Insurance Corporation. a private equity group must settle for a maximum stake of 33%. appoint more directors without this being deemed to constitute control. 27 | P a g e . the capital overhang increased by more than $141 billion during 2008 with the global economic crisis causing investment activity to decline by an estimated 60%.regulators have reluctantly ceded some ground to the barbarians at the banks‘ gates. But through "club" deals. The Office of the Comptroller of the Currency. private equity firms can cooperate to purchase a bank. for instance.html Private Equity Overhang Private Equity Overhang Private Equity Firms Reach Record Capital Overhand Private equity firms reportedly have $400 billion in capital that is not being invested. buyout firms actually had a negative capital overhang of $55 billion. . private equity economy. Private equity firms have accumulated capital increasingly since the beginning of the crisis in the latter half of 2007. has even developed a ―shelf charter‖. According to Pitchbook Data. private equity monitor. Sheila Bair. Source Tags: Private equity. has reached a record high in 2009. which regulates nationally chartered banks. But it is clear that private equity is gaining a larger stake in the future of banking. private equity timothy geithner. Regulators have laxed some restrictions on private equity firms investing in banks--probably out of necessity as the number of failing banks continues to rise. its chairman. private equity regulation. In 2007. Clubs of investors are being pre-cleared so they can pick up bank charters quickly when opportunities arise. which such groups can secure in advance of deals. will loosen its stance or not remains to be seen. private equity economist Link to This Resource: Private Equity Bank http://privateequityblogger.. has also softened its stance.com/2009/06/private-equity-bank..
but for students at the University of North Carolina Business School.3 million of committed capital under management. and then present their decisions to a faculty/advisory investment committee and a board of directors. in part. The students rely. And this isn't a small responsibility. Students raise capital. perform due diligence.com/2009/06/private-equity-overhang.html UNC Kenan Flagler Private Equity Fund UNC Kenan-Flagler Private Equity Fund Students Manage Million Dollar Private Equity Fund It's hard to find a silver lining in the tough economy right now. private equity report. UNC Business School students have the unique opportunity to operate a private equity fund seeking to generate real returns to limited partners. The UNC Kenan-Flagler Private Equity Fund is operated by a 12-member student management team. on the UNC alumni network to help source 28 | P a g e . it is a learning opportunity. source deals.Since then. the gap between funds raised and equity invested has widened significantly with the capital overhang bouncing back up to from -$55 billion in 2007 to +$141 billion in 2008. holding more than $1. students have to manage all aspects of the fund. capital overhang. private equity capital investment Link to This Resource: Private Equity Overhang http://privateequityblogger. make investment decisions. however. definition capital overhang. Tags: Private equity overhang. private equity data.
Private Equity Education. Tags: Private Equity UNC. We are leveraging each members‘ expertise and the expertise of our LPs to get our investments right. ―Lower valuations are benefiting deal variety to the fund as we capitalize on the business support from firms with UNC ties and alumni through increased information and access to companies to make the right deals. Private Equity Students.deals and already have partnered with other private equity firms across the country. The students are working in an adverse environment but they have been able to capitalize on lower valuations.000 of equity capital per investment transaction.‖ Fund I will be fully committed by the third quarter of 2009 and students will begin to raise Fund II next fall that will be open to qualified investors that are friends and family of the UNC community. To learn more about the students' fund you can visit their website.000 to $150. The average deal size for each transaction is between $20 million to $125 million in enterprise value and the fund can invest between $100. Private Equity Funds.‖ Kate Kitsopoulos (MBA Class of 2009). giving private equity firms an opportunity to invest in struggling businesses." The following CNBC video explores the question of when will the inevitable comeback occur.html Private Equity Comeback Private Equity Comeback Is Private Equity Posed to Make a Comeback? The private equity industry has suffered during the financial crisis. fund director. ―We are grappling with complex decisions amid a widened scope of risks and considerations. co-investing with top quartile fund managers on leading transactions and thinking about how traditional exit strategies are changing. We continue to see solid opportunities and will take full advantage of investing through the down cycle. We have broadened our scope of due diligence and are benefiting from lower valuations and a 5-6 year investment horizon to our LPs. In fact. and as Julie Macintosh of the Financial Times says "things can't get much worse. they have already successfully completed several investments in companies in the medical and technology fields that they hope are more recession resistant and will bring higher growth than other sectors. fund managing director explains the learning experience. Click the image to watch the video: 29 | P a g e . or has it already started? Experts are pointing to Treasury Secretary Timothy Geithner's plan to have public-private partnerships purchase toxic assets. The ability to understand how to deploy our capital effectively has become even more important in the current economic climate. Private Equity Economy Link to This Resource: UNC Kenan Flagler Private Equity Fund http://privateequityblogger. ―We are committed to returning the best return given realistic values.‖ said Michael Kopeikin (MBA Class of 2010).com/2009/06/unc-kenan-flagler-private-equity-fund. UNC Kenan Flagler Business School.
and speakers. the HiT Barcelona World Innovation Summit will host leaders of technology and innovation to share the latest developments. leaders. and major brands. technology investing. private equity videos. The GSMA Mobile Innovation Summit attracts more than 400 senior executives. innovators. please visit the event website here. The event is sponsored by the world's largest mobile trade association. venture capital. opportunities and challenges in the Telecommunications. attendees will have the opportunity to learn from experienced keynote speakers including notable academics. GSMA. private equity geithner. GSMA. Tags: GSMA event. investors events Link to This Resource: GSMA http://privateequityblogger. Groupe Spécial Mobile.html GSMA GSMA GSMA Mobile's World Innovation Summit In June 2009. 30 | P a g e . CleanTech and HealthCare industries. If you'd like to attend the event or would like to learn more about it.com/2009/05/private-equity-comeback. private equity comeback. Global System for Mobile communications. mobile technology. global business executives and leaders working in various tech fields.Tags: private equity. For two days. representing all facets of the mobile innovation ecosystem. mobile industry suppliers.html Information Technology Support & Management Services Information Technology Services Below please find a listing of firms which specialize in providing information technology services to hedge funds and investment firms. private equity ppip. private equity valuation.com/2009/05/gsma. including mobile network operators. private public partnerships Link to This Resource: Private Equity Comeback http://privateequityblogger. whose members serve 82% of the world's mobile customers.
com. Connecticut. and management. contact Warren Finkel at 201-735-7263 or at Warren. data protection/backup services. IT Services for Hedge Fund Managers Link to This Resource: Information Technology Support & Management Services http://privateequityblogger. Information Technology Support Services.networkdr. Information Technology Management Services. support. proactive maintenance. We are looking for tips on forming a fund.Network Doctor keeps your information systems running smoothly and efficiently.Finkel@networkdr. security audits. If you are a private equity fund with less than a 5 year track record and under $100M in assets under management please email me 31 | P a g e . Our team of system engineers are experts in maintaining network infrastructure for hedge funds and investment advisors. and document management. Chicago and Miami.html Private Equity Startup Event | Managers Needed Private Equity Startup Event We are putting together a panel for an investment fund startup up event scheduled for June 18th.com/2009/05/information-technology-support. penetration testing. hiring talent and wearing multiple hats while running a private equity fund business. To set up an appointment or for more information. business continuity/disaster recovery planning. raising capital. Los Angeles. server monitoring. 2009. NJ and services clients in New York. understanding the industry‘s compliance requirements and the necessity for maximum up-time. We are your IT department and trusted technology advisor. as well as 24x7x365 coverage. Tags: Information Technology Services.com or visit us on-line at www. We are looking for a private equity fund manager who would like to be on a panel sharing startup stories with other small hedge fund managers. Network Doctor is recognized as being of the highest caliber by our clients and by industry leading hardware and software manufacturers. New Jersey. build-out. Network Doctor services include network design. Network Doctor is headquartered in Englewood Cliffs.
18 billion in the first quarter.org. Starting a private equity firm Link to This Resource: Private Equity Startup Event | Managers Needed http://privateequityblogger.1 billion in 2007 to US$48 billion in 2008.partly a reflection of lower prices. Tags: Private Equity Fund Startups. Private Equity Event. This is significant compared with the same period a year earlier when deal volume totaled US$10. 32 | P a g e . . That means even funds that spot good deals in the market face difficulties accessing enough capital to make investments.2 billion California Public Employees' Retirement System. or Calpers. The largest U. Instead of deals. The average private equity deal size was US$62 million in the first quarter. Britt said. while lower.14 million in the first quarter last year.Funds are also getting pressure from investors to hold off from drawing capital for investments. still have a way to go down. raising capital at record levels in 2008. deal volume for Asiafocused private equity funds is very low compared to a year ago. public pension fund. partner at Debevoise & Plimpton LLP in Hong Kong. Pension funds and endowments have been squeezed by losses incurred by the downtrodden markets.S. The funds raised increased from US$40.24 billion. explains that firms are waiting for a good deal to come along. the $179.. fund managers in the region say they've been spending more time working with companies already in their portfolios." The Wall Street Journal has more: Asian private equity players say they're busy eyeing deals but that valuations.html Private Equity in Asia Private Equity in Asia Asia-Focused Private Equity Fundraising Surges Private equity funds focused in Asia defied the financial crisis.. The total deal volume for private equity firms in the Asia Pacific region was US$2. compared with US$70. More recently. Despite the big boost in fundraising. has asked private-equity firms to ease off on requests for additional capital it had previously committed to deliver. Deal sizes have gotten smaller . Thomas Britt. "Companies see this as a once in a generation buying opportunity. TPG allowed investors of its US$4 billion Asia fund to reduce commitments by 10%.com/2009/05/private-equity-startup-event-managers. private equity. They feel like time is on their side so there are not numerous bidders.directly at Richard@HedgeFundgroup.
has conducted a survey of private equity investors and found that most are willing to wait at least a year before turning to the secondary market. Of those who are looking to sell on the secondary market. Yang. Tags: Private Equity Funds.com/2009/05/private-equity-in-asia. just 10% plan to sell immediately. Of the 568 private equity institutional investors that were surveyed. Private Equity Asian Pacific. 43% want to sell 33 | P a g e . Inc.html Private Equity Institutional Investors Private Equity Institutional Investors Private Equity Institutional Investors Willing to Wait Private equity investors are willing to wait at least a year or two before selling. managing director at Carlyle. and Yichen Zhang of Citic Capital. estimated they've been spending about 70% of their time looking at new deals.D. compared with 90% a year ago. according to the latest investor survey. X.Firms such as Kroll report more demand for post-transaction investigations as private equity firms check up on companies in their existing portfolios. Preqin. Asian Private Equity Funds. Asian Private Equity. 11% said they wanted to sell their stake on the secondary market. Speaking at the Private Equity International Forum conference in Hong Kong last month. Private Equity Fundraising Link to This Resource: Private Equity in Asia http://privateequityblogger. Private Equity Asia.
‖ 34 | P a g e .html Carlyle Group New York Carlyle Group New York Carlyle Group Settles with New York in Pension Scandal The Carlyle Group will pay $20 million and reform its practices in order to settle with New York's state attorney general Anthony Cuomo. it bans the selling of access. the Carlyle Group agrees to discontinue its use of intermediaries to gain access to public pension funds nationwide. But the economic recession and plummeting asset values is hurting the investors' portfolios and forcing some investors to sell their interests in the fund--even for a much lower price. private equity institutional investors. The deal aims at reforming the interactions between private equity and hedge funds with all public pension funds. private equity valuation. In return.within the next 12 months. The inquiry centers around the use of middlemen by private equity firms and hedge funds to secure investments from public pension funds. Preqin commented. Cuomo's office will not penalize the firm or any of its executives.typically commit for the life of the fund. it puts the political power brokers out of business. "Only those with an extremely distressed portfolio will be willing to exit investments at today's prices. private equity secondary market. Mr. Private equity investors--especially the larger partners like pension and endowment funds-.com/2009/05/private-equity-institutional-investors. private equity investors. Under the settlement. Carlyle must reduce its contributions to politicians who oversee pension funds." Source Tags: private equity market. Also. Investors considering selling their shares are "being put off" by the big gap between asking prices and net asset values which has led many potential buys and sellers from making a deal on the secondary market. and 47% expect to sell in 12 to 24 months. private equity preqin Link to This Resource: Private Equity Institutional Investors http://privateequityblogger. I believe it totally changes the way people operate: It ends payto-play. Cuomo said of the settlement: ―This is a revolutionary agreement. Mr.
com/2009/05/carlyle-group-new-york. Although the venture aspect means that venture buyouts have some risk. a venture buyout would try to improve the business in a much shorter time.Christopher W. New York Pension Fund.html Venture Buyout Venture Buyout Understanding "Venture Buyouts" Venture buyout is a relatively new term (apparently coined by Harvard Management Company's Peter Dolan) which describes what some consider an emerging new asset class that combines elements of venture capital and private equity buyouts. to counter its high-risk entrepreneurial ventures. ―We are pleased to announce today that we have reached a successful resolution with the attorney general and strongly support his efforts to implement reforms that usher in a new era of transparency and accountability into the pension fund investment process. Carlyle Group New York Link to This Resource: Carlyle Group New York http://privateequityblogger.‖ (NYT) For more information on the investigation please see this article. This is also an alternative to traditional large buyouts because it requires less capital and targets more entrepreneurial companies. the funds typically use less leverage than a large buyout because the buyout targets are smaller companies. The targets are similar to the firms that venture capitalists invest in but the venture buyout is unique because it seeks to "carve out" a startup business like a private equity buyout while maintaining the entrepreneurial aspect of venture capital. spokesman for the Carlyle Group stated. Ullman. New York Pension Fund. 35 | P a g e . While buyouts typically hold a company for about 5-7 years. Anthony Cuomo. Venture buyouts can be seen as an alternative to venture capital that is invested in startup companies trying to expand because a venture buyout somewhat sidesteps the early stage of a business and takes over an existing small company. Some venture capitalists have turned to the buyout model to diversify their portfolio with a more established middle-stage company. Carlyle Group Pension Fund. The venture buyout may buy up a smaller company and try to increase its value and to turn it around by fixing management or operations problems. A venture buyout firm seeks to fill a void by investing in middle-stage companies that traditional buyout funds and venture capitalists pass over. venture buyouts groups-because they are relatively small compared to the large buyout firms-. A venture buyout fund typically collects capital from limited partners to buyout a small later-stage company. Pension Funds and Private Equity. Tags: New York Attorney General. Also.will usually take on less companies in their portfolios than larger private equity buyout firms would.
Blackstone Group appears to be recovering although it still posted a negative economic net income.1 million invested in liquid Blackstone funds. venture management buyouts Link to This Resource: Venture Buyout http://privateequityblogger. During the same period of time. one of the largest private equity firms.Here is a video from Yahoo Finance about venture buyouts: Tags: venture buyouts.com/2009/05/venture-buyout.4 million in the previous quarter. a big boost from -$621. adjusted cash flows from operations went from $-4 million in Q1 2008 to positive $75 million in Q1 2009. venture capitalists buyouts. venture buyouts definition. it is good news that the Blackstone Group (BX) only had a $93 million loss in 1Q 2009. can be seen as a barometer for the private equity industry. venture buyouts tech. venture capital. Another positive sign was the total segment revenue of $48 million in the first quarter this year.3 million in available cash and $400. Considering that in the last quarter of 2008 the company posted a net economic income loss of $827 million. venture capital investing.html Blackstone Group Investment Blackstone Group Investment The Blackstone Group's Recovering in Q1 2009 The Blackstone Group. Blackstone also seems to be sitting on a good deal of cash with $776. The firm has weathered almost a quarter of a century in private equity although this recession has proved difficult for even the most experienced private equity groups. Like many of the major private equity firms. Net fee related earnings from operations improved by 32% from the first quarter of last year to this year. venture capital buyouts. Source 36 | P a g e .
Morgan Stanley Investment Management and Abbott Capital Management each raising vehicles of $2. LLC. bx.html Private Equity Fundraising in April Private Equity Fundraising in April Private Equity Raises $30 Billion in April Surge Here is just a quick bit of good news: last month private equity firms raised about $30 billion in new capital commitments. The largest funds-of-funds were closed by Siguler Guff Co. Here's another look from Deal Pipeline showing the biggest deals in April 2009: Again. The money pouring into fund-of-funds offer a viable funding alternative for future LBO funds. Here is the data for the big fundraising push at the end of April: As the Deal points out. blackstone group. blackstone group investment Link to This Resource: Blackstone Group Investment http://privateequityblogger.14 billion.Tags: Private equity. $1. blackstone group llc. blackstone group 2009. In the end of April.4 billion. private investors are now 37 | P a g e . private equity funds focused on fund-of-funds contributed significantly to the fundraising boost. blackstone. blackstone group report. and $1 billion. This is a strong showing by private equity firms--helped in large part by secondary funds--in an otherwise dismal beginning of this year. With the uncertain economy and many investors suffering major losses. the fundraising boom in April was mainly powered by the very active secondary market. this is especially good news for leveraged buyouts which have seen a decline in capital from their usual sources (pension funds and endowments).com/2009/05/blackstone-group-investment. respectively. blackstone group stephen schwarzman.
Price < $1. Look for 80-90%+ of listings to have both an email address and phone number for each firm. working with information that is largely outdated or receiving data which has not been thoroughly prepared for commercial use with Excel or common CRP systems.html Family Office Directory | Contact Details of Family Offices Family Office Directory How to choose a directory of family offices: When selecting a directory or database of family offices to purchase there are 4 points to consider or investigate before making a purchase. Often times just 300-900 contacts may be more than enough to expand your firm‘s reach within this industry 2. Many databases have poor data quality and only 60-70% of their contacts even list a single email address for the firm.000 plus professionals. By following these tips you will avoid purchasing something built for a different audience.com/2009/05/private-equity-fundraising-in-april. In the last year how many firms has your team had time to effectively reach out to? 400? 800? Do you only speak with family offices while marketing your products? While it may be nice to obtain a directory of 1. 3.000: Hiring professionals to efficiently use a database of family office contacts can be expensive. Due to their dayto-day contact with family offices and the firm‘s history in raising assets from family office investors they know how to create a valuable 38 | P a g e . Tags: Private equity fundraising. fund of funds. private equity economy. Check the Source: Who is providing the database of family offices? It is a firm which naturally speaks with family offices day-to-day? Can the professionals behind the product provide advice on how to approach family offices and HNW wealth management firms? The quality of the organization behind the product can often give you clues as to how valuable their end family office directory product may be. 4. It does take hundreds of hours to build a great product within this space but any firm selling such a product could make you a deal and sell a version of the database to you for $700-$900. private fund of funds Link to This Resource: Private Equity Fundraising in April http://privateequityblogger. don‘t spend more than $1. Private equity could do with a few more months of fundraising like April. Top 4 Tips for Family Office Directory Selection 1.000 on your directory of family offices.000+ family offices make sure you don‘t pay too much for a database built for a Fortune 500 company instead of a small team of 3-5 marketing and relationship development professionals. A quick example: The Family Offices Group is a family office networking association of 5.500 total contacts. private equity secondary market. Statistics Matter: Ask the owner of the family office directory for the percentage of contacts which come with email addresses AND phone numbers.more willing to sell their stakes in private equity and venture capital at a significant markdown. Length: Many family office directories come with 400 to 1. private equity april 2009.
It is not often that private equity leaders will speak for over an hour with university students.com/2009/05/stephen-schwarzman.html Facebook Valuation Facebook Valuation Private Equity Firms and Facebook in Valuation Talks 39 | P a g e . directory of family offices.com/2009/05/family-office-directory-contact-details. family offices Link to This Resource: Family Office Directory | Contact Details of Family Offices http://privateequityblogger. Schwarzman Stephen A. He talks about the challenges of heading a major private equity firm in the current financial crisis.com. Schwarzman Video: Blackstone Group's Stephen A. Tags: Private equity videos.html Stephen A. private equity stephen schwarzman.Adriana Adriana Albuquerque is the Managing Director of the Family Offices Group and responsible for developing the associated directory of family offices. Related To: Family Office Directory Family Office List Tags: Family Office Directory. Schwarzman is the chairman and co-founder of the Blackstone Group. but this is the second video of Mr. family offices directory. Mr. Schwarzman http://privateequityblogger. stephen schwarztman. family office.directory of contact details on firms in the industry. directories of family offices. Schwarzman in this setting. Schwarzman Stephen A. Schwarzman also provides career advice for his Yale student audience. . To learn more please see FamilyOfficesDatabase. steven schwarzman. stephen schwarzman blackstone group Link to This Resource: Stephen A.
facebook inc. Inc. private equity investing facebook. but there's none of it out there anymore. and Kohlberg Kravis Roberts. facebook private equity. Greylock Partners. Bain Capital. Its current investors include: Accel Partners. General Atlantic. the private equity firms and Facebook. are having trouble agreeing on what the company is worth. Facebook COO Sheryl Sandberg said. Added another source. According to the Post. facebook private equity. even growth funds. After investing more than $400 million into the company. facebook private investors. "We absolutely do not need to take money. Meritech Capital Partners. Tags: Facebook investors. facebook investing. The social networking site is said to be looking for funding from several private equity firms including Providence Equity Partners. are being much more conservative with their investments. The social network has grown to at least 200 million worldwide and the investors see this as a lucrative opportunity to cash in on its popularity. Inc. is talking with private equity firms about the possibility of another round of fund-raising.html 40 | P a g e ." Although Sandberg denies that they need capital.com/2009/05/facebook-valuation. Sandberg expects Facebook to boost revenue by 70% this year and it is on track to be cash-flow positive next year. The discussions are described as casual and no term sheet has been drawn up. Facebook believes its value is somewhere between $5 and $6 billion while private equity groups see it as much lower--about $2 and $3 billion. but it doesn't mean we need to.Facebook." said one source who was approached by the company." The Post People familiar with Facebook's funding situation said that the firm's attempt to raise new capital has brought tension with current investors. "It's a new era and funds. The investors are said to oppose the fundraising round because it would dillute their stake in the company. We might take money. Link to This Resource: Facebook Valuation http://privateequityblogger. private investors are hoping to generate profits off the site's users. facebook buyout. Microsoft and angel investor Peter Thiel. some sources have suggest that's not exactly true: "Facebook is looking for dumb money.
Smith explains. as Canada's buyout industry prepares to break a fund-raising record. which means we have a lot of capital that is available to invest in 2009. according to Mr. He says. will continue to put Canada in a very strong position for the mid-market in the buyout industry." As Buyouts Soar. the venture capital sector reached its lowest deal activity in twelve years--just over C$1 billion in 2008. One example is the partnership announced this week between the country's biggest pension fund administrator and the Quebec province.S. "There's been a number of long-term venture capital firms in Canada. the strength of our financial institutions. This follows a series of similar but smaller-scale venture capital deals with the local and federal government.000 jobs. Smith. Unlike U. Surprising." Smith believes that 2009 will be a solid year for investment. but the amount of money that's been raised by private independent funds. Caisse de depot et placement du Quebec announced a major venture capital deal with the Quebec government worth at least C$825 million.Canada Private Equity Canada Private Equity Canada Private Equity: Buyouts Up as VC Sinks Buyouts in Canada are at a near-record fund-raising pace and private equity investment activity will likely rise too as asset valuations are expected to firm by the end of 2009. private equity firms' fund-raising--which has slowed dramatically since the last quarter of 2008--the Canadian buyout industry is one of the world's strongest." Canada's Government to the Rescue The CVCA has been working in conjunction with Canada's federal government to raise investment in venture capital. "We had a very strong fund-raising year 2008 and it was strong in 2006 and 2007. I think that the global crisis will have a further dire consequence on what is already a very fragile venture capital industry in Canada. Investors began avoiding venture capital at the onset of the global economic crisis and they have yet to return. the country's venture capital sector is floundering. creating more than 100. Buyouts Investment Expected to Rise in 2009 The president of CVCA.6 billion). "Good ideas can die because there's no place to go. our banks in Canada. the size and liquidity of our pension plans in Canada. And Smith believes that venture capital investment may decline even further in 2009. who have tried to raise new money to invest but have stopped fund-raising efforts because of the inability to raise capital. The Canada's Venture Capital and Private Equity Association (CVCA) reports that over the past five years. Gregory Smith recently told Reuters: "I think we'll see some softness in terms of investment numbers in 2009. It's tough enough finding funding for a small business or entrepreneur but even with investment an idea may fail to get commercial recognition as investors lose interest." The low numbers reflect the decline of an industry that has been struggling for years in Canada. 41 | P a g e . Canada's private equity buyout industry has increased Canada's GDP by C$30 billion ($24. I'd say about a half of dozen in number. Venture Capital Struggles While Canada's buyout industry is a source of optimism.
By changing the Income Tax Act and working with the federal government. Michael Holland. Canadian Private equity. which may have been a reason why foreigners are investing elsewhere. The biggest fear for private equity firms is that this move is the start of a trend that will be copied by other states. However. Section 116 of the Income Tax Act. Canada buyout." (Reuters) 42 | P a g e . Private equity firms rely heavily on such middlemen as placement agents. Canadian venture capital. All of these intermediaries are now banned under the current comptroller's recent decision. paid intermediaries and registered lobbyists to establish relations with big investors like the New York State Pension Fund. As private equity buyout activity booms.com/2009/04/canada-private-equity. a former partner at the Blackstone Group and founder of Holland & Co. the CVCA hopes to drive up venture capital activity. believes this is probable. Canada private equity firms. Canada hopes to save its venture capital sector from going bust. Canada private equity. Source Tags: Venture capital Canada. The comptroller made the ban as a response to a growing investigation by the SEC and the New York Attorney General into possible bribes and fees received by two aides to the former comptroller. Canada buyout firms. Canada private investment Link to This Resource: Canada Private Equity http://privateequityblogger. "I think it is very likely to gather momentum.html Private Equity in New York Private Equity in New York Private Equity Hurt By New York Ban on Middlemen The private equity industry suffered a blow from New York State as the comptroller banned the use of middlemen directing the pension fund's investments. I'd be very surprised if other states don't follow that lead.Smith also hopes to fix Canada's property regulation. private equity funds may be the biggest victim in the aftermath.
Almost none have a 43 | P a g e . 54 percent used a placement agent.The ruling especially hurts smaller private equity funds which rely primarily on placement agents to attract capital.com/2009/04/private-equity-in-new-york. up from 45 percent in 2007 and 40 percent in 2006. Tags: Private equity. private equity investment." Those in the private equity industry call the decision unfair and say that placement agents serve a legitimate purpose for private equity. The use of placement agents has been growing in size over recent years and according to research firm Preqin. private equity pension Link to This Resource: Private Equity in New York http://privateequityblogger.html Start a Private Equity Fund Starting a Private Equity Fund Tips to Start a Private Equity Fund Most private equity fund startups I speak with want referrals to respected service providers or advice on attracting seed capital. "Of the private equity firms that raised funds in 2008. private equity placement agents. New York State Pension. blackstone group. private equity lobbyist. Private Equity Fund.
What resources do you or should you have in place to meet these goals? Third party marketers? Databases of investors? An in-house marketing specialist? How much does this cost and when should these resources be put in place? We will be expanding our thoughts here on what should be included in a Private Equity Fund Business Plan. Many funds under-estimate the costs of some of the technology needed to operate as they grow beyond more simple $1-$5M fund operations. processing and functioning as not only a private equity fund. When you start a private equity fund you become an entrepreneur and you have to face all of the challenges that come with that position in addition to those challenges found in managing your portfolio. Anyone who joins your firm or board will want to know how you are looking to grow your business. private equity start up. We will also be providing an example business plan eventually that will provide you with a template to use for your own hedge fund startup work. institutional consultants. Investment Process & Risk Management . What channels of investors will you approach? Institutional investors including fund of private equity funds. how are decisions made and what happens if 2-3 professionals disappeared tomorrow? Who would take over responsibilities and what would happen to your investors funds? The importance of a well constructed and managed team can not be overstated. starting a fund. If you are a fund manager in this position that doesn‘t mean you have done anything wrong but you may consider writing both a private equity fund business plan and comprehensive 15-25 page PowerPoint presentation now to make it easier to work with service providers. Meet with your prime brokerage firm‘s risk advisory division. and network with other managers to pick up some best practices within this space. startups. Marketing: Nothing is traded or managed until the dollars come in. high-net-worth individuals. Infrastructure & Technology: Meet with other local private equity fund managers. the quality of advice you receive and the reputation of your firm as a whole. but a small business. large family offices and pension funds or smaller family offices. your trader.Managing risk is what running a private equity fund is all about. private equity fund start up. Our advice would be to meet and interview at least 3 service providers of each type in person or over several phone calls and go with one that is well experienced yet not so large that your sub $1B account is not an annoyance to them. Service Providers: Who are you going to use as your prime brokerage firm. start a fund Link to This Resource: Start a Private Equity Fund 44 | P a g e . and potential investors. in our asset raising experience the later should be 80% of your focus if you are managing less than $100M. private equity advice. Richard Wilson offers some helpful tips on starting a private equity or hedge fund. private equity funds. third party marketers. auditor or third party marketer? How will this evolve as your fund passes the $100M and $300M marks? Will you use multi-prime brokerage services? Capital introduction teams? Multiple third party marketers? Your choice of firms within this space can affect the levels of assets you manage. There is no magic bullet to raising assets or gaining seed capital but getting this combination right is the most important thing you can focus on. your prime brokerage firm and other service providers to nail down exactly what you will need in terms of reporting. Richard Wilson's Hedge Fund Startup Guru Tags: Private equity startup. At the end of the day your risk management approach. wealth management firms. and accredited investor clubs? Here is a hint. investment process and team must be molded into one cohesive group all pointed in the right direction. consultants. Parts of your private equity fund business plan should include: Management . private equity fund startup. fund administrator. speak with your traders and portfolio managers.What team members are required to run the fund effectively? What is the chain of command.business plan for their private equity fund and only a few have PowerPoint presentations explaining their investment strategy.
com/2009/04/start-private-equity-fund. head of the British Private Equity and Venture Capital Association.000 cost in order to comply with the new law. strategy and investors. Mr. That's in addition to the 16 large firms already complying with the voluntary transparency code enacted last year. Walker the law would apply to a company outside the EU if it is possessed by a EU private equity firm. Walker criticized the new law predicting: "This will provide a profound disincentive to be owned by a private equity fund. strategy and outlook. On the other hand.000 to £30. Simon Walker. Will it be passed on through increased costs for investors? I think so. Strangely. if a UK firm is purchased by a private equity firm it does not have to adhere to the new law.http://privateequityblogger.html Private Equity EU Private Equity EU EU Law Adds More Regulation of Private Equity Private equity in Europe has felt already been struggling in the economic downturn and a new draft Euriopean Union law threatens to make matters even more difficult for private equity firms. estimates that this law will effect 86 UK private equity firms. Another aspect of the draft EU legislation effects companies owned by private equity groups. Any private equity owned company with a turnover exceeding €50m would have to submit an annual report of its finances. Nine of the effected firms are venture capital and provide a seed capital for technology start-ups." Source 45 | P a g e . Mr. Walker estimated that 500600 UK firms would be affected by the law. an area which European politicians have been striving to encourage. A draft EU law that will be published next week would require any private equity group managing funds of at least €250m (£220m) total to report more information about its structure. according to Mr. According to his "quick estimate by a big four accountant" he calculates that the firms will have to pay an additional £25.
has announced that it is interested in investing with 3-5 private equity funds this year. private equity investment china. it only invested $1." By purchasing equity stakes in state firms. In addition to investing with private equity funds. While the yuan is not entirely convertible.html China Private Equity Investment China Private Equity Investment China's State Pension Fund to Invest in Private Equity Some exciting news from China: the country's pension fund. "We will pick at least 3-5 private equity firms this year. Source Tags: China private equity.html PBS Nightly Business Report Interview Transcript PBS Transcript Nightly Business Report Interview 46 | P a g e . Although the pension fund is allowed to invest up to 20% of its assets abroad. dollar as the world's primary reserve currency. private equity filings. National Social Security Fund. the pension fund hopes to limit its bond exposure and increase its holdings to at least $1 trillion yuan. private equity law. national pension fund. the NSSF's chairman expressed hopes of using the Chinese yuan currency to invest directly overseas. financial regulators have called for a greater use of the currency with the Chinese central bank governor even calling for the yuan replacing the U. private equity eu. focusing on investing in small and medium businesses and the service industry. Dai did not say if the fund would invest in domestic or foreign markets.com/2009/04/china-private-equity-investment. China pension fund.S. the National Social Security Fund. Chinese private equity. Chairman Dai Xianglong said at the Boao Forum for Asia. european private equity. The state pension fund is enlisting the private equity funds help manage some of its US$82 billion portfolio. private equity pension fund Link to This Resource: China Private Equity Investment http://privateequityblogger.Tags: Private equity.com/2009/04/private-equity-eu. private equity legislation.66 billion outside China by the end of 2007. private equity firms in Europe Link to This Resource: Private Equity EU http://privateequityblogger. private equity europe.
we've got to find a way for the ratings agencies to serve the users of the ratings and that's investors. investors. This is the Schapiro‘s first television interview since taking the reins of the SEC. So we 47 | P a g e . they were badly misled in many cases. SECURITIES AND EXCHANGE COMMISSION: As you know we held a roundtable yesterday on credit rating agencies and we brought in about 30 experts from academia. the shareholders. CORRESPONDENT. STEPHANIE DHUE: So you think new regulations will be needed. But it's real important. especially given the crisis that we are going through right now that boards be ever more accountable to owners of the company. as opposed to the issuers of the security. But I think there are some additional things we need to focus on to align the interests of the credit rating agencies with the users of the ratings. STEPHANIE DHUE: We're just about in the throws of proxy season and shareholder activists are pushing hard to reign in executive pay. STEPHANIE DHUE. and if we want to bring integrity back to the ratings process. the regulations that have been put in place don't just need enough time to work? MARY SCHAPIRO: Some of the regulations are new they haven't really had enough time to work. STEPHANIE DHUE: Would you be prepared to take away a company's "nationally recognized" status as a credit rating agency to punish them if they don't get their act together? MARY SCHAPIRO: I think if somebody has the nationally recognized rating from the SEC and they violate the law. but we will be very much informed by what we learned yesterday from all these experts and proceed hopefully sometime this summer to propose some additional enhancements. When will we see changes in the way they do business? MARY SCHAPIRO. so I can't tell you a specific time when I think we'll be done on that issue. serious investors access to the proxy and we should propose rules on that probably in a month or so for the commission to consider and to put out for comment. from the investment community from labor unions and from the credit rating agencies themselves to talk about the short comings in the current model of credit rating agencies. CHARIMAN. And we had an enormous amount of information from all of these participants and a lot of issues for us to parse and to really think about. And that's really important to us because investors relied on credit ratings. will you help them to get rid of non responsive board members by giving them access to the proxy? MARY SCHAPIRO: We are very committed to giving long term. that's absolutely something we would consider doing. NIGHTLY BUSINESS REPORT: You told credit rating agencies the status quo wasn‘t good enough.Below please find a transcript that I was sent earlier today via email: The PBS program Nightly Business Report is pleased to release a transcript of its exclusive interview with SEC Chairman Mary Schapiro.
particularly in light of the Madoff scandal.are very committed to moving ahead on responsible proxy access as soon as possible. What changes are you going to make to money market mutual funds and the way they are regulated? MARY SCHAPIRO: Money market funds are an enormously important part of the financial system. STEPHANIE DHUE: Do you think investors should be concerned about money market funds. but I think investors can have confidence in the basic integrity of money market funds. So from my perspective. are you getting more people calling in with tips about Ponzi schemes and what are you doing with that information? MARY SCHAPIRO: We receive close to a million tips per year at the agency and we need to handle them better and more effectively then we have historically. maybe fold it into the CFTC or just do away with it. there is the insurance now. So we are looking at all of those different options and we will propose something in about a month which we think will provide very good and responsible access. you know. But I will tell you the number of Ponzi schemes that we are detecting early on and stopping. where depending on the size of the company the threshold for stock ownership might be different. or would have broken the buck if they didn't pour money in. What do you see for this agency in the next five years? 48 | P a g e . there are 4 trillion dollars in money market funds and investors rely on them enormously. given its handling of the financial crisis is under fire and some critics say. and therefore increase liquidity and hopefully make them more resilient in an economic crisis then we learned they were in this past fall. ―when the tide goes out we see who's been swimming naked‖ and that's what's happened with Ponzi schemes. and we will take the steps necessary to again restore their resilience in times of economic crisis. STEPHANIE DHUE: The SEC has been involved in investor education on Ponzi schemes. you're also looking at Bank of America and bonuses that they paid to Merrill Lynch. The insurance program is in place. it's really critical that the SEC take all the steps it can to bolster confidence in money market funds. but are there still dark areas there? Will we see more turmoil? MARY SCHAPIRO: It's hard to predict whether we'll see more turmoil there. they haven't done their job. shorten maturities. largely unbeknownst to investors. STEPHANIE DHUE: You certainly do have your work cut out for you. and we are reviewing from A to Z our process so we can be more effective with them. STEPHANIE DHUE: Just before the financial meltdown banks that owned money market funds were quietly shoring up funds they were concerned would break the buck. the SEC. what's the punishment for that? MARY SCHAPIRO: We're looking very carefully about the disclosure of the bonuses and I've said that to a member of Congress who inquired about it. So we are going to look at proposing rules very shortly that will enhance the credit quality of money market holdings. or should we have a tiered approach. and if it turns out to be inappropriate it will be referred to our enforcement division and then we have the full range of sanctions that we can imply in the conduct of an enforcement case. if you find that they didn't disclose that information like they should. there has been lots of debate about should you have to own 5% or 1% of a company's stock. as you mentioned. it's time to scrap it and start over. shutting down immediately has grown dramatically in the time that I've been here and I think to quote Warren Buffett. They can't maintain the scheme in more difficult economic times and as a result they are being exposed earlier on.how far do you go? MARY SCHAPIRO: I think we have to grant access to the proxy to longer term shareholders of some size in terms of their share holdings. STEPHANIE DHUE: But even though you've been making all these efforts. STEPHANIE DHUE: Responsible proxy access .
That said. but with that said I think with an aggressive enforcement program. Mary Schapiro. STEPHANIE DHUE: Can the SEC do the job.MARY SCHAPIRO: I don't think that there's any doubt that the agency has had a difficult couple of years. Chairman of the Securities and Exchange Commission. STEPHANIE DHUE: We've been speaking with Mary Schapiro. SEC Chairman Mary Schapiro. Does that mean we'll never miss a fraud or we'll never miss a scam? Of course not. MARY SCHAPIRO: Thanks it was my pleasure. very good job. very aggressive. thanks for joining us. We're an agency of only 3. restoring investor confidence in the market is important. that's not going to happen if the SEC isn't doing a first class job and that's what we're committed to do. Tags: PBS Nightly Business Report Interview Transcript.html New York Pension Fund New York Pension Fund Private Equity Firms in Pension Fund Scandal 49 | P a g e . so we're small for the task. I would not have come to the SEC if I didn't feel like I had the freedom to move the agency in that direction. with a regulatory response to problems as they begin to emerge. we need a competent. the markets are enormous. The markets are critically important. those are our constituents. investing always has risks and investors always need to have that in the front of their minds. I think we can do a very.000 regulated entities.500 people with close to 30.com/2009/04/pbs-nightly-business-report-interview. PBS Interview Transcripts. those are the people we should be serving and I'm highly committed to doing that. particularly in a crisis. when they're not. MARY SCHAPIRO: I think the SEC can do the job. but I think now more than ever. can they police the markets. very activist Securities and Exchange Commission. SEC Link to This Resource: PBS Nightly Business Report Interview Transcript http://privateequityblogger. We are the only federal agency charged with protecting investors. or does it just give people a false sense of security that their investments are being protected. so that the rules are written that protect the public more effectively.
whether large Wall Street firms or smaller broker-dealers. the New York state pension fund has invested the most with the Carlyle Group. According to the Washington Post: New York Attorney General Andrew M. The private equity firm was involved in five investments with an estimated $730 million in capital from the pension fund. The use of consultants is not in itself unlawful. "Carlyle has fully cooperated with the New York Attorney General's investigation. to find if the fund was aware of the special treatment that the various firms were receiving. We understand this is an industry-wide investigation and that we are not the focus of the investigation." This investigation follows the criminal and civil charges filed by the New York Attorney General and the SEC against the former top aide to former New York comptroller and the pension fund's former chief investment officer. The two have been accused of receiving bribes and gifts for directing pension fund money toward investment firms. the firms are being investigated to see whether they failed to disclose their using the middleman to the pension fund." And referring to Carlyle Group's previously scrutinized relationships with consultants the spokesman said. and many investment firms see consultants as a necessary means to receiving an 50 | P a g e . According to court documents. court documents claim that they received $30 million in fees and gifts. Carlyle's spokeman offered the following statement. "Our agreements with placement agents. the sources said. Carlyle is pleased to currently serve the pensioners of New York. While they deny any wrongdoing. Illinois and Connecticut and has achieved excellent returns in several funds on their behalf. Additionally.New York state and federal authorities are investigating whether several private equity firms and hedge funds--including the Carlyle Group--participated in an illicit scheme to secure investments from the New York state pension fund. Cuomo and the Securities and Exchange Commission have alleged that the middleman won business for the firms through illicit payments. Cuomo has subpoenaed several firms that got business from the $122 billion pension fund after using the services of a middleman who connected investment firms with potential investors. call for all parties to abide by all laws to ensure the integrity of the investment process.
" The Wall Street Journal has more on 3i Group PLC's Jonathan Russell: 51 | P a g e . Firms with more than EUR500 million for funds and EUR100 million for a company's enterprise value will be subject to the proposed regulations which Russell says are "unwarranted disclosure rules that go beyond even those required by publicly-listed companies. ." The problem of pay-to-play practices is not exclusive to New York and the Attorney General Cuomo did not rule out the possibility of the investigation expanding to other firms and funds. the Connecticut Attorney General reached a near half-million dollar settlement in a case where a broker was secretly compensated for directing pension-plan business to insurers. Private Equity Pension Fund Scandal. little more than kickbacks that were made pursuant to undisclosed quid pro quo arrangements. New York Pension Fund. The SEC's complain asserts that at least some of the firms were fully aware of the illicit arrangement: "Private equity firms and hedge fund managers .audience with a pension fund. The New York investigation is ongoing and has been for over two years. The accusation is that investment firms paid bribes and fees in order to obtain investments from the pension fund. together paid millions of dollars to Morris and others in the form of sham 'finder' or 'placement agent' fees in order to obtain those investments from the Retirement Fund. managing director of 3i Group PLC has been a leading voice in negotiations with the European Commission over proposed regulations that will include small and medium-sized firms. and just recently the SEC joined the case. in fact. The original legislation was designed to target large private equity firms and hedge funds but has also ensnared smaller portfolio companies. Private Equity Pension Funds. Recently.html Jonathan Russell | 3i Group PLC Jonathan Russell | 3i Group PLC Jonathan Russell Criticizes EU Plans for Regulation Jonathan Russell. Private Equity Hedge Fund Consultant Link to This Resource: New York Pension Fund http://privateequityblogger. Private Equity. SEC investigation. . Source: WP Tags: New York Attorney General. These payments to Morris and others were.com/2009/04/new-york-pension-fund.
"The proposals completely miss the point and instead impose an unnecessarily costly burden on companies about which no-one is concerned.. The European Private Equity and Venture Capital Association's main complaints center on the "one size fits all" approach adopted by the commission which has lumped hedge funds and private equity funds together. 3i group private equity.com/2009/04/jonathan-russell-3i-group-plc.. 52 | P a g e .N). don't pose a systemic risk because they only use leverage at their underlying portfolio companies . private equity tracker profiles. Carlyle Group and KKR teamed up for a joint offer and the Blackstone Group offered a bid before last week's deadline. wireless carrier in terms of subscribers. However. please see our 3i Group private equity tracker profile. who has spearheaded the European industry body's negotiation over the proposals. To see more on 3i Group PLC. Kohlberg Kravis Roberts & Co and Blackstone Group (BX.not at the fund or manager level. private equity europe. Major private equity firms including Carlyle Group. EVCA says that private equity managers. overtaking AT&T. unlike hedge funds. The acquisition of Alltel Corp. made the largest U. "The rules as drafted will also make Europe a less attractive place to deposit capital. 3i group plc.N) own Verizon Wireless. European private equity firms Link to This Resource: Jonathan Russell | 3i Group PLC http://privateequityblogger. Verizon said that over 30 bidders expressed interest in purchasing the assets and the auction will take place over several months. Verizon and Britain's Vodafone Group Plc (VOD.html Verizon Buyout Verizon Buyout Private Equity Firms Bidding on Verizon Assets Verizon's wireless telephone assets are attracting bids from large private equity firms. Earlier Wednesday. rival telecommunications companies also bid in the auction. driving away investors." said Jonathan Russell.L) (VOD. the European Commission published new disclosure requirements for hedge funds and private equity firms that will catch much smaller firms than the regulator initially considered.S. according to sources close to the situation. Verizon Communications is divesting its wireless telephone assets after its acquisition of the rural wireless company. managing director of 3i Group PLC (III. Read more. Tags: 3i group. in January. Alltel Corp.LN)." he added. Verizon has to divest airwaves in 105 markets. private equity 3i. In order to gain regulatory approval for the deal. 3i group plc private equity.
private equity investors are still waiting on the sidelines for the current economic conditions to stabilize.Tags: Private equity verizon. This led the median deal amount to drop from $61 million in 2008 to $25 million this quarter. private equity investors are still hesitant to invest any of that capital. private equity buy verizon. The credit crunch has cut the number of deals over $250 million to just 12% of Q1 deals. Compared to Q1 2008.com/2009/04/verizon-buyout. PitchBook's CEO. with a 70% fall in buyouts. verizon private company. It reveals that although fundraising has remained strong. buyout verizon.. 53 | P a g e . private equity telecommunications. investment activity dropped by 68%.despite having raised record amounts of capital over the past two years. sums up the findings best. while 440 were in Q3 and 279 in Q4 of 2008. the credit markets to return. Verizon assets Link to This Resource: Verizon Buyout http://privateequityblogger. ". John Gabbert. buyout telecommunications.‖ The key statistics for private equity Q1 2009 are: Only 188 investments were completed in the first quarter.. buyout bid verizon.html Private Equity 2009 Data Private Equity 2009 Data 2009 Q1 Report Shows Investors Still on Sidelines The latest report from PitchBook Data covers the first quarter of 2009. Instead. and valuations to adjust before they really get back to doing new deals. private equity investors are turning to minority investments and acquisitions of middle-market companies.
A survey by Quinnipiac University and Greenwich Roundtable sheds some light on investors' attitudes. "Leverage.The amount that private equity firms invested during this quarter reached a new low of only $12. and lack of confidence are still keeping the sophisticated investor on the sidelines. cool-headed limited partners refrain from making future commitments to alternatives. compared to $52. The Energy industry felt the biggest drop in investment activity. executive director at the Greenwich Roundtable. private investors.html Alternative Investments Alternative Investments Investors Turning Away From Alternative Assets Following the banking crisis and Bernie Madoff's large-scale fraud. We have never seen so many rational. with a more than 60% drop from last quarter at just 9 completed investments. The Business Products and Services industry followed at second with 46 transactions and then Healthcare with 28. investors have reason to be anxious. pitchbook data.7 billion invested during the same period last year--and the remarkable $177 billion invested in Q4 of 2007. The latest survey reveals that investors are less confident in alternative investments and the regulatory agencies. 53 investments were completed in the Consumer Products and Services industry.com/2009/04/private-equity-2009-data. According to Steve McMenamin. liquidity. private equity pitchbook data. private equity information Link to This Resource: Private Equity 2009 Data http://privateequityblogger. private equity news." 54 | P a g e .8 billion. Breaking it up by industry: In Q1 2009. private equity investors. For the full report from see Pitchbook Tags: Private equity. private equity data.
Madoff Approximately 45 percent of members felt that better oversight by the SEC could have prevented the fraud.com/2009/03/alternative-investments. Close to 50 percent of investors had a positive view of the Federal Deposit Insurance Corporation. institutional investors. private equity Link to This Resource: Alternative Investments http://privateequityblogger. alternative investments. more than one third of participants signaled that they had lowered their allocations to alternative investments while 54 percent of participants are keeping their allocations constant. private equity alternative investments. Results from this Source Tags: Private equity survey. Gates One third of participants said that between 10 percent and 40 percent of managers are raising gates or suspending redemptions.html Gulf Private Equity Gulf Private Equity 55 | P a g e . More than 28 percent of respondents believed that any due diligence should have raised enough red flags to preclude investing. Twenty-two percent of investors said that verification by auditors could have prevented the Madoff scandal. Close to 50 percent of respondents believed that asset prices will need to stabilize for a period of six months to a year before investors return to the markets. Thirty percent of managers felt it will take a year or longer for market conditions to improve. Regulatory Agencies More than 72 percent of members voiced a negative view of the SEC. Ninety-seven percent of respondents believed the rating agencies as ineffective.Quinnipiac University and Greenwich Roundtable interviewed almost one hundred institutional and private investors at the beginning of 2009 to find the following results: Asset Allocation and Market Outlook Over the past quarter. private equity surveys. Close to one-quarter of managers indicated dissatisfaction with current fund gate structure. About 47 percent of participants had a positive view of the Federal Reserve Board. private equity investors. About 10 percent of investors felt that gates were being abused.
Carlyle Group recently announced its first $500 million Middle East and North Africa fund. we are the alternative option. Arif Naqvi predicted. private equity industry. People have seen how value has been created Although he sees many private equity investors turning to the region. take a long term approach and to become more knowledgable in industries they invest in. private equity middle east.com/2009/03/gulf-private-equity. Naqvi urged investors to use judgment and due diligence when investing. At a recent private equity conference in Dubai. Private equity has a good name in this region. at least according to the chief executive of Abraaj Capital. "The private equity industry in this region is going to enter a phase where I believe that the returns we have seen over the last few years will be dwarfed by what we are going to see. Arif Naqvi explained why the Gulf may be an appealing prospect for foreign private equity investors: ―The public markets are paralyzed and closed. private equity carlyle group. This year's summit seems especially important for private equity as the traditional leveraged buyout model has received more and more criticism and the industry faces the prospect of increased taxes on carried interest.html Private Equity Summit Private Equity Summit Key Quotes from Global Private Equity Summit The annual Reuters Global Hedge Funds and Private Equity Summit took place March 23-25. Investors should. Well. Source Tags: Private equity gulf. Private equity has struggled in the economic downturn and fund raising has become especially difficult for many private equity firms. Reuters has provided some of the key quotes to come from the Summit: 56 | P a g e .Gulf Private Equity Returns Expected to Rise Private equity returns in the Gulf region are expected to soar. Naqvi suggested." As large American private equity firms like the Carlyle Group and KKR are eying the region for potential investment opportunities. private equity middle east. carlyle group. private equity north africa Link to This Resource: Gulf Private Equity http://privateequityblogger. not just regionally but globally.
They are facing redemption. These angel investors will often to do more harm than good for your business.. 57 | P a g e . are now not waking up at night. The control freak angel investor usually relies on special clauses in the contract that give him more power if you fail to perform a duty. when perhaps there are certain public market dislocations ." The managing director of Societe Generale. This is how a control freak attempts to take over your business and run it as his own." Frank Tang. I think the next two. private equity conference.. private equity and hedge funds Link to This Resource: Private Equity Summit http://privateequityblogger. thus creating a tension between his tendency to interfere with the entrepreneur's creative control. Timothee Bousser said: "A lot of the global macro players who used to wake up at night to trade Asia because they had things to trade and volatility was very high. Angel Investors To Avoid: Control Freak Angel Investor: This angel investor is a great source of capital but the moment your business hits a pothole.. the co-founder and managing director of Asia Alternatives: "Anybody who's fund-raising right now I would say is banging their head against a wall. that would be too late." "Anybody who has a fund of fund in their name is going to be looked at more closely.com/2009/03/private-equity-summit. the CEO and managing partner for Fountainvest Partners had an optimistic prediction: "As a private equity investor." For more information from the summit check out Reuters' coverage. four years will really be a golden period for us. private equity and hedge fund summit. three.html Entrepreneur Risk Entrepreneur Risk Angel Investors That Entrepreneurs Should Avoid Angel investors can help grow your business and while they are often beneficial there are some types of angel investors to look out for. the investor is ready to start controlling your business. private equity news. "They are watching to see if their seat is still there. Tags: Private equity summit.. "I think we'll be very busy for the next three years. Reuters private equity conference.Laura Wang. This is exactly the time that private equity investors can play role. we don't have to wait for the economy to recover first before we put in the money.
there will be strict. angel investor Link to This Resource: Entrepreneur Risk http://privateequityblogger. Divide your investors into two categories: pure investors and those you feel may bring additional value. this looks like the ideal investor. minimizing any basis for a lawsuit. Be polite but firm in telling them you'll keep them informed of your progress through written means only. etc. While some micro-managing angel investors will simply exit the investment. professional investing organizations -. failing to keep him informed in a timely manner. if you do so. This document should be standard for all your investors and not negotiated on a one-on-one basis. Watch out for any attempts to add clauses that can come back to bite you.html Treasury Secretary Timothy F. written guidelines as to what is expected. The angel investor will either annoy you by trying to offer help in the simplest tasks or he will be so worried over his investment that he checks on every single operation.com/2009/03/entrepreneur-risk. entrepreneur risk. Geithner Treasury Secretary Timothy F. hire an investment banker to prepare a proper Private Placement Memorandum that's consistent with National Association of Securities Dealers requirements. for free. And don't eat any soup that tastes funny. angel investor risks. If you are a raw start-up and have no choice but to accept investments from private "angel" investors.Micro-Manager Angel Investor: On the surface. Tags: Angel investors. you'll ask them to formally join an advisory board or the board of directors. The Litigious Investor: The litigious investor knows you lack the funds to fight a lengthy court case so they will look for any opportunity to take you to court. Rather than helping your business succeed. The litigious angel investor looks for the slightest error--failing to send him stock certificates. after a while it becomes apparent that this investor tries to involve himself in every aspect of your business. angel investor entrepreneur risks. We generally refer to PPMs as "anti-investment" documents because they warn the investor about everything that could potentially go wrong. it's not always the case. Some entrepreneurs certainly should be taken to court but there are some angel investors that exploit this means for their own gains. he wants to lend you the capital to grow your business and he offers his expertise. Geithner 58 | P a g e . angel investing risk. don't encourage or allow them to "get actively involved" in the company. Geithner | Bad Asset Plan Timothy F. make sure your lawyer writes the investment document -. Some become litigious investors. intimidation and legal action. angel investing. Also.not private individuals. For those in the first category. this type of angel investor tries to squeeze money out of you through threats. only accept investments from credible.not your investor. If you want more active involvement. do the following: Ask what other companies they've invested in and talk to the CEOs of those companies to find out what kind of investor they've been. However. Whenever possible. The Street has some tips for avoiding these nightmare angel investors: Whenever possible. However.
Timothy F. meant to remove them from the balance sheets of banks and. Obama administration officials worked Sunday to persuade reluctant private investors to buy as much as $1 trillion in troubled mortgages and related assets from banks. but it‘s not worth it if I‘m buying myself into a retroactive tax or a Congressional hearing. with government help. in turn.‖ the chief executive of a major investment firm said. and in some circles limiting their pay. A new report from an international law firm reveals that although there are still opportunities 59 | P a g e . Since Obama has taken office the US government has been playing with the idea of regulating hedge funds. Bad Assets Investment Plan Link to This Resource: Treasury Secretary Timothy F. A favor done today may be a burden tomorrow. __________ ―The deal is good. This combined with the recent actions against AIG and UBS make many funds will be careful in what they commit to. Timothy Geithner. Geithner | Bad Asset Plan http://privateequityblogger. planned to unveil the details of the administration‘s longawaited plan to purchase troubled assets.I believe that the Obama administration may have a hard time attracting many hedge fund and private equity groups in supporting Timothy Geithner's plan on cleaning up toxic bank assets. Toxi Asset Plan. discussing decreasing their capital gains tax privileges. source Tags: Treasury Secretary Timothy Geithner. spur banks to lend more money to consumers and companies. The talks came a day before the Treasury secretary. as onshore "round-trip" transactions have become more difficult to carry out in China. insisting on anonymity because he did not want to seem at odds with the Treasury Department in the event that his firm ends up participating. Geithner.html Private Equity in China Private Equity in China Private Equity Investing in China Private equity investors are adjusting with onshore investments.com/2009/03/treasury-secretary-timothy-f-geithner.
. According to the report. Western investors like "roundtrip" investments because they provide several benefits such as common and preferred stock. an investor's interest is represented by an undivided percentage of the FIE's registered capital. making it difficult to establish the offshore entity. private equity Asia. but this faces significant regulatory hurdles. The report concludes: "Investors equipped to adapt to transaction and exit structures unique to onshore direct investments will have at their disposal a broader range of alternatives and will be better-positioned than their competitors in a market recovery. Instead. Since 2005. offshore holding company. the capital paid in by investors. Private equity Hong Kong. the Chinese government has been tightening restrictions. and valuation adjustments. Therefore. but for the FIE's documents to be changed too. private equity China.com/2009/03/private-equity-in-china. onshore investments.html Private Equity Investing in Banks Private Equity Investing in Banks Bernanke Hopes For Private Equity Investing In Banks 60 | P a g e . It might be necessary to sell the foreign-held equity to domestic Chinese investors—an increasingly likely option if the number of renminbi equity funds continues to rise. says the report. where equity rights and board representation must be set in accordance with equity percentages. So-called "round-trip" investments are becoming increasingly difficult to carry out in China. An FICLS can. This is the route that FIEs are already taking. This interest is not freely transferable since a transfer of equity requires not only the approval of the government and the entire board. A listing in Shanghai or Shenzhen might be possible. say." Primary Source Tags: Private equity in China. private equity investing Link to This Resource: Private Equity in China http://privateequityblogger. one recalcitrant board member can scupper any transfer by either refusing to allow the transfer or by not allowing for the relevant documentation to be changed. Private equity firms seeking to exit an investment will prefer the offshore transaction to the onshore: . however. FinanceAsia explains how investors are using FIEs: With regards to capital structures FIEs do not have shares. allowing an exit via an initial public offering. Compare this with. the inflexibility of equity joint ventures. usually as a joint venture. which can often be concluded without government approval by the sale of the holding company." Private equity investors have adjusted by turning to foreign investment enterprises (FIE). This transaction occurs when an investor places money in an offshore holding company to gain an indirect share in a company located in China.the onshore transaction offers fewer options than its offshore equivalent. there are some significant barriers created by the Chinese government.for private equity investments in China. in theory. have differing classes of equity. and it is the only FIE that can be listed on the stock exchange. A foreign invested company limited by shares (FICLS) is another form of the FIE which Dechert predicts will become a more attractive option for private equity investors. this has "made private equity deal structuring extremely difficult. private equity Chinese..
private equity federal reserve. The Federal Reserve has loosened some regulations that prevent private equity firms from investing in banks for example private equity firms may now hold bank board seats and communicate with management. Douglas believes that it is a good opportunity for private equity firms and that they should be allowed to invest in the banks providing them with much needed capital. private equity investment banks 61 | P a g e . private equity investing in banks. offers an interesting take on the loosened regulations for private equity in banks. Bernanke made some interesting remarks about the need for private equity to stimulate the economy. Here he is talking about private equity's role in banks: Tags: Private equity. (For the Federal Reserve's changes to the banking regulation see this document. and it will pick up steam over time." Mr. the chairman of the banking and financial institutions group at Paul Hasting's." Skip to the end of this video for his comments on private equity or check out the full interview here: While the Federal Reserve has made some promising motions to invite private equity firms to invest in banks. Bernanke highlighted the need for private equity firms to invest in struggling banks as a crucial step in the recovery process: "One sign would be that a large bank would be successful in raising private equity. Bernanke began the conversation with a surprisingly optimistic prediction saying "I do think we will see the recession coming to an end probably this year. He argues that the Federal Reserve has not gone far enough and that private equity firms should be allowed to assume a controlling interest in a bank. Right now all of the money is sitting on the sidelines saying we don't know what these banks are worth and we don't know if they are stable. private equity Ben Bernanke.) John Douglas. We'll see recovery beginning next year. some are arguing that it has not done enough.Federal Reserve Chairman Ben Bernanke gave a hopeful forecast in a rare interview on "60 Minutes. and they are not willing to put their money into the banks." While much of the interview covers the Federal Reserve's actions throughout this economic crisis. private equity recession. Private Equity banks.
carried interest and other expenses). private equity firms lost more value for their investors than venture capital firms did in the first three quarters of last year. but VC sucks less. Non-venture capital private equity firms fell 8. but expect that to disappear once the tin mark signifies the dotcom bust rather than the dotcom boom. And given what we know about Q4.com Re-Launch 62 | P a g e .9% for VC funds.Link to This Resource: Private Equity Investing in Banks http://privateequityblogger. More from peHUB: Cambridge Associates has released new fund performance data. non-VC private equity firms were down 8. during the first three quarters of 2008. They both suck. private equity funds. Things flip around once you begin looking at three-year and five-year performance. which shows that private equity firms (buyout.238 VC funds raised between 1981-2008. venture capital value. The gap is even more pronounced for one-year performance (Q3 07-Q3 08).5% compared to -0.26%. where buyout firms are at -5. Specifically. venture capital.html FamilyOfficesGroup. private equity data. private equity value.26% mark for VC funds. Also worth noting that Cambridge‘s results are more favorable to the VC industry than are Venture Economics‘ results. Not in terms of this specific issue of YTD buyouts vs. Tags: private equity. If you'd like to see the venture capital and private equity firm performance data follow this link to Cambridge Associates. while venture capital firms lost nearly half that. and 1. private equity cambridge Link to This Resource: Buyout Funds and Venture Capital http://privateequityblogger.html Buyout Funds and Venture Capital Buyout Funds and Venture Capital Private Equity Lost More Value than Venture Capital According to Cambridge Associates new fund performance indices.com/2009/03/private-equity-investing-in-banks. Not just actual dollars — of which buyouts simply has more — but in terms of percentage (net of fees. Venture has the lead on 10-year. mezz) lost more value for limited partners than did VC firms.com/2009/03/buyout-funds-and-venture-capital. VC.9% through the third quarter of 2008. losing 4. The Cambridge Associates data is based on a sample of 748 private equity firms raised between 1986-2008. growth equity.9% through Q3 2008. venture capital funds. it‘s a reversal of fortune that can be expected to accelerate. compared to a negative 4. of course. but just in terms of overall VC benchmarks.
more free-to-access articles on family offices and many resources related to both UHNW philanthropy and alternative investments. hedge funds. philanthropic.com Re-Launch http://privateequityblogger. real estate Link to This Resource: FamilyOfficesGroup.com will be in touch shortly. The site now has an upgraded appearance. philanthropy. family office. hedge fund. Here are the most popular articles from this site: Family Office Jobs Single Family Office Investment Performance Philanthropic Giving Financial Advisor Marketing Family Office Services Family Office Wealth Management Single Family Office Family Office Resources Tags: family offices.FamilyOfficesGroup. private equity. alternative investments. wealth management.com.html Family Office Database | Databases of Family Offices Family Office Database Family Office Database Option Looking for a database of family office contacts? Please complete the form below and a professional from the FamilyOfficesGroup. To learn more about family offices or to see our new site please visit http://FamilyOfficesGroup.com.com/2009/03/familyofficesgroupcom-re-launch. investments. Top of Form 63 | P a g e .com Re-Launch Our team has just re-launched FamilyOfficesGroup.
Deal Journal pointed out Friday that Nordic Capital's recent purchase in the secondaries market has filed for bankruptcy. Multi-Family Office Database Link to This Resource: Family Office Database | Databases of Family Offices http://privateequityblogger. Since the purchase of Plastal eight years ago from Gilde Investment Management. Database of Family Offices. However. Directory of Family Offices. suggesting that it could be a sign of what's to come in for private equity secondaries buyouts.com/2009/03/family-office-database-databases-of.Family Office Databases. Nordic Capital has sunk more than $150 million into the auto parts manufacturer. Nordic Capital invested 1. This reflects the cost of the 2005 purchase from Dutch peer Gilde Investment Management.html Nordic Capital Nordic Capital Nordic Capital's Auto Parts Company Files Bankruptcy The secondaries market has been seen as a point of optimism for the struggling private equity firms during the credit crunch.Family Offices Database. Single Family Office Database. which had owned what became Plastal since 64 | P a g e .First Name: Email Address:: Submit Bottom of Form Tags: Family Office Database.3 million) in the bumper and dashboard maker through its fifth fund.5 billion Swedish Kronor ($161.
Such skills are increasingly valuable as cash has become king. secondaries market Link to This Resource: Nordic Capital http://privateequityblogger. its contribution to Plastal‘s €350 million euro ($439. because the management teams were used to running the business to maximize cash flow to service the debt. Still. or tertiary. And while secondaries buyouts tend to add a level of debt to companies. private equity secondaries. The auto parts company explained the bankruptcy filing thus. and an equity infusion of 100 million kronor in January." Deal Journal explains that companies with heavy amount of debt are more likely to be hit by economic downturns. private equity nordic capital. A sharp decline in volumes during the fourth quarter 2008 has been followed by a further 40% drop in the first two months of 2009 [against the same period the year before]. buyouts. While Nordic Capital's troubles aren't a conclusive prediction of what is to come for the private equity secondaries market.2001. private equity industry. Plastal filed for bankruptcy recently. Tags: Private equity trends. private equity firms thought management teams would be especially able to handle the debt and increase cash flows. private equity nordic capital plastal. Secondary buyouts were seen private-equity firms and their investors as more stable and better able to handle debt loads than socalled primary buyouts.5 million) purchase of German car parts maker Dynamit Nobel Kunststoff. like the drop in demand that crippled Plastal. TThe Plastal group has been severely impacted by the unprecedented downturn in the automotive industry.html Carried Interest Taxation of Private Equity Funds Carried Interest Taxes Carried Interest Taxation of Private Equity In case you missed it last week Obama's new tax plan for 2010 calls for taxation of carried interest as ordinary income more than doubling what many will pay on taxes from such gains. nordic capital. Here is an excerpt from a related article: 65 | P a g e . For the full article follow this link. almost any business with leverage is more vulnerable than most these days and this particularly affects secondary. it is a sign that even secondaries buyouts are vulnerable to market volatility.com/2009/03/nordic-capital-nordic-capitals-auto. Despite Nordic Capital's investment into the company. plastal group.
from its IPO of $31 Blackstone's stock has declined ever since to just below $5 today.Executives at buyout. ―They‘re missing key components of what these industries do. It will likely reignite a debate begun in 2007 amid the biggest buyout boom in history. While the House of Representatives approved the tax change that year. venture-capital and hedge-fund firms will pay an estimated $24 billion more in taxes over nine years if President Barack Obama gets his way. starting in 2011. as ordinary income instead of capital gains. The buyout firm's decision to go public in the summer of 2007 reveals a steady slide in the company's value (see Yahoo finance image). released today.16 billion loss last year with an alarming $415. That change would boost the tax rate.html Blackstone Group LP Blackstone Group LP Blackstone Shows 2008 Losses and Executive Pay Cuts The Blackstone Group has proved vulnerable to the economic downturn. Carried Interest Taxes. Carried Interest Taxation. Carried Interest Tax. Do private equity firms pay taxes Link to This Resource: Carried Interest Taxation of Private Equity Funds http://privateequityblogger. click here to see the full history of the stock.‖ said George Teixeira. the measure wasn‘t taken up by the Senate. to 39. Significantly. Blackstone Group LP's stock fell at more than two times the rate of the market last year. ―Obama and his team are up for a fight here. This stands in stark contrast to the firm's performance in the recent private equity boom where Blackstone was a giant in the industry posting a $1. Private Equity Taxes. Blackstone Group LP (BX) stock has steadily dropped.2 million lost in the fourth quarter of 2008. Obama‘s 2010 budget proposal. 66 | P a g e . The proposal applies to partnerships that receive a portion of the profits they make for their clients. announcing a $1. proposes raising taxes on the managers by treating carried interest. a managing director with accounting firm RSM McGladrey in New York.6 percent for most executives from the 15 percent they now pay. the portion of profits they take from successful investments.‖ source Tags: Private Equity Fund Taxation.62 profit in 2007.com/2009/03/carried-interest-taxation-of-private. when firms including Blackstone Group LP and Och-Ziff Capital Management Group raised their profiles through public stock listings. The private equity firm began offering its stock at the height of the buyout boom.
visit this link. Blackstone Group (BX). Top of Form 67 | P a g e .6 million in available cash as of Jan. For the full report for Blackstone Group LP (BX) in 2008. he collected $15. Blackstone's President Tony James also received a pay cut-. suffered a steep pay cut last year.com/2009/03/blackstone-group-lp.to a lesser extent.5 million in management and advisory fees during the final quarter in 2007. BX stock. While Blackstone has suffered heavy losses recently. on a more optimistic note Blackstone is still pulling in steady income from management and advisory fees and maintains more than $750 in available cash: While the value of its investments tumbled during the quarter. Blackstone said it has $767. Stephen Schwarzman. however. Despite the mounting losses. Schwarzman received an impressive $180. blackstone group lp. Mr.4 million in management and advisory fees. blackstone group stephen schwarzman.000 salary. Additional Source Tags: Blackstone Group losses. the company was still able to generate $381. down 73% from the previous year.7 million in salary and bonus. Blackstone private equity.html Family Office Directory | Directory of Family Office Contacts Family Office Directory Directory of Family Office Contacts Looking for a directory of family office contacts? Please complete the form below and a professional from the FamilyOfficesGroup. 31 after paying off the entire $250 million balance on its revolving credit facility. he agreed to a 99% decrease to a $350. Blackstone Group generated $447. In 2008. the company says its liquidity is strong enough to handle the downturn. blackstone salary Link to This Resource: Blackstone Group LP http://privateequityblogger.com will be in touch shortly. Last year.Pay Cuts for Blackstone Executives in 2008 The co-founder and chairman of the Blackstone Group LP.1 million in 2007 coupled with the $684 million he received when Blackstone went public.
" The report reveals that private equity-backed firms fared considerably better in a variety of management practices than other owners including government. Multi-family office directory. Investing Book 2. most private equity firms use merit-based hiring. firing.Family Office Directories. A new report from the World Economic Forum aimed at answering this question and found that companies backed by private equity are "on average the best-managed ownership group.com/2009/03/family-office-directory-directory-of. Family Office Services 3. Report Finds A consistent point of contention over private equity concerns the impact that private equity investors have when controlling a company. Single Family office Directory. compensation and promotions.html Private Equity Owned Companies Private Equity Owned Companies Private Equity Manages Companies Best. family or private owners. Family Office Marketing 5. Philanthropic Giving Permanent Link: Family Office Directory Tags: Family Office Directory. private equity firms tend to have uniquely 68 | P a g e . Directory of Family Offices.Family Offices Directory.First Name: Email Address:: Submit Bottom of Form Articles Related to Family Office Directory 1. That is. One reason for why private equity firms tend to manage companies better than others is the reward structure. directories of family offices Link to This Resource: Family Office Directory | Directory of Family Office Contacts http://privateequityblogger. Additionally.
private equity owned companies.rigorous evaluation metrics. it is over 100 pages and provides interesting insight into how private equity investors owning a company effects its efficiency.com produces free weekly articles on the family office industry. The report concludes that "most private equity-owned firms are well managed. Tags: private equity. Here is the full report. This reflects that private equity-backed companies are consistently managed well. and is well understood by the PE firm's employees. it is fairly rare to find a badly managed private equity-backed firm. private equity management practices. Private equity-backed companies performed especially well in operational management practices.com/2009/02/private-equity-owned-companies. private equity ownership implies a broad approach to improving management practices across the board. As the number of family offices increase and larger institutions raise their AUM minimums this segment of the market becomes even more interesting to those in charge of managing or marketing hedge funds and private equity firms. Many private equity-owned companies employ lean manufacturing practices. So.000+ person networking group dedicated to the family office space. world economic forum. which consider both short. Joining this group costs nothing and our website http://FamilyOfficesGroup." The impressive average levels of management practices within private equity firms can be explained by the relatively small number of badly managed firms. Below please find the top 20 most popular articles to date from FamilyOfficesGroup.com Multi-Family Offices Top Articles on Multi-Family Offices Many hedge funds count family offices as one group of their investor base.and long-term performance. "with continuous improvements and a comprehensive performance documentation process.com: Family Office Jobs Philanthropic Giving Family Office Services 69 | P a g e ." In this way. while the number of poorly managed firms owned privately or by a family is pretty normal.html Multi-Family Office Information & Articles | FamilyOfficesGroup. private equity owned companies performance Link to This Resource: Private Equity Owned Companies http://privateequityblogger. The Family Offices Group is a 4. private equity management.
Multi-Family Office.html Private Equity and Banks Private Equity and Banks Private Equity Firms Want Details Before Aiding Banks 70 | P a g e . facts on single family offices.Family Office Wealth Management Single Family Office Hedge Fund of Funds by Family Offices Family Office Marketing Family Office Industry Family Giving | Philanthropic Management Investing Book Financial Advisor Marketing Private Equity for Family Offices Family Office Example Starting a Single or Multi-Family Office Family Offices Message Board Private Banking and Wealth Management The Cost of Being Wealthy Jobs at Hedge Funds CHA Designation Family Office Consultants Tags: Family Office. Family Office Information.com http://privateequityblogger. family office articles. family office details Link to This Resource: Multi-Family Office Information & Articles | FamilyOfficesGroup. articles on multi-family offices. Family Offices.com/2009/02/multi-family-office-information.
Private equity is a likely source of capital for struggling banks. Nor is there much information yet available at a new Web site. it is doubtful that private equity firms will be very willing to help in rebuilding the banking system. buyout banks. they want certain assurances from the government on what it will and won't do to encourage private investment. private equity banking Link to This Resource: Private Equity and Banks 71 | P a g e . A telling response came from a partner from a financial services-focused private equity firm.‖ said Mani Sadeghi. that Geithner unveiled during his speech. and an idea of how the deals would be structured. PE firms are clearly interested in partnering with the government to invest in banks. Without information like this. But after having been burned last year in the sector. ―Clearly we‘re interested. financialStability. But the question is whether partnering with the government allows us to be value-adding…You have to understand what you are buying. according to reactions from several members of the private equity industry. at what prices. The main criticism toward Geithner was that he failed to provide any specific details on how private equity will work with the government. ―We don‘t have every detail yet.gov. managing partner of Equifin Capital Partners. private investment. ―They are still talking in concept. private equity bailout.‖ Private equity firms specifically wanted details on what assets would be bought and at what price. private equity and banks. and how they are serviced. which focuses on financial services deals." there were no specifics in his speech. But beyond Geithner's statement that the government needs to "mobilize and leverage private capital. not supplant or discourage it. private equity investing in banks. I wouldn‘t touch a bank stock after that speech. If the government is interested in reaching out to private equity groups then Mr. but private equity firms seem less than inspired by the new Treasury Secretary Timothy Geithner's latest comments. private equity.‖ Source Tags: private equity banks. who will bare the risk and who will reap the rewards (the government or PE investors). Geithner did not convey this well. not in substance.
72 | P a g e . full 13-20+ page PowerPoint presentation and one page newsletter which would be released monthly providing your view of the markets within your niche area of expertise. Here are the top 10 tips for creating your private equity marketing materials. Your advantage must be unique. Do not send any pitchbook or marketing material out before speaking with a qualified compliance or legal counsel on your team. My advice to both $30M and $1M private equity funds is that you can never start this process early enough. Make your competitive advantage clear and do not rely upon canned phrases such as ―positive returns within bull or bear markets‖ anyone who reviews private equity fund materials for a living see these by the hour. it is an iterative constantly evolving project which will never be complete. Create a one page marketing sheet.com/2009/02/private-equity-and-banks. Think long-term. 95% of the people who you will send the PowerPoint presentation to will not ready more than 15 pages of the material unless you are walking them through it over the phone or in person. This should be the foundation upon which everything else is built.http://privateequityblogger. Work with high caliber service providers so that you don‘t bring extra skepticism upon a relatively new fund which may already be scrutinized by potential investors and advisors. but this is the exception. Professionals who work in prime brokerage or administration see many types of marketing materials and can help provide valuable feedback at no additional cost to your fund. Do not create a PowerPoint presentation that is longer than 30 pages. Use your whole team and prime brokerage business partners and other service providers to improve your marketing materials. There are some institutional money managers who run 3 similar funds and will sometimes cover each of these within a single presentation.html Private Equity Marketing Materials | Pitch Book Private Equity Pitch Book Private Equity Marketing Materials Tips Below is a list of my top 10 tips to those professionals who are looking to create a pitch book for the private equity fund. your experiences and pedigree. Stress your team. Invest in creating a robust institutional quality pitch book the first time around and complete 5 drafts of it internally before showing it to a single investor. Stress the importance and individual functions of your team. investment process and risk management controls and how they all interact inside the operations of your private equity fund.
It is hard enough to catch an investors‘ attention and bring them to the table to discuss your fund. Coming into a meeting with a word document or 25 pages of bullet points is not very effective. Private Equity Pitch Book.Purchase the rights to graphics. MBA grads need to have some patience--along with good grades and experience. Those who graduate with a Masters in Business Administration 73 | P a g e .com/2009/02/private-equity-marketing-materials. choose a unique. Private Equity Fund PowerPoint Presentation. I have made a point to update the site with as many resources as possible related to private equity careers. Speakers for the recent private equity and venture capital conference at the Harvard Business School cautioned that today.html Private Equity Job Market Private Equity Job Market Tips for Entering the Private Equity Job Market Many Private Equity Blogger readers are MBA students/recent graduates or professionals hoping to make the switch from another finance career to private equity. you don‘t want to lose them due to the aesthetics of your PowerPoint. simple and professional layout for the presentation and use the new Windows Vista diagramming tools to create institutional quality presentation. For other Private Equity Blogger career resources please refer to the list at the bottom of this post. Related to Private Equity Marketing Materials | Pitch Book Private Equity Real Estate List Private Equity Conference Private Equity Real Estate Private Equity Forum Private Equity Industry Private Equity Associate Hedge Fund List Private Equity Jobs Tags: Private Equity Fund PitchBook. Fund Pitch Book Link to This Resource: Private Equity Marketing Materials | Pitch Book http://privateequityblogger. Private Equity Marketing Materials.
" said Craig Driscoll. to warn." For other articles on private equity careers and jobs visit the following links: Complete Private Equity Jobs Guide Finding a private equity job Private equity job salaries Private Equity and Hedge Fund Jobs Source Tags: Private equity jobs. The people that have been through a crisis come out more battle hardened. Mass. such as with the government or within a start-up: "If I were looking for a job. private equity career. "Running with the herd made sense with the vast majority of the evolutionary past. private equity job market. I'd work at [the Department of Energy] for a few years and then come out and [find] a clean tech firm that has to penetrate those [regulatory] networks..are faced with a very adverse private equity job market." Interestingly.and third-tier private equity firm. private equity job. a New York venture capital firm. a partner at Lexington. Although the panelists cautioned against working at a second. Instead.com/2009/02/private-equity-job-market. private equity job placement. finding a private equity job Link to This Resource: Private Equity Job Market http://privateequityblogger. but it doesn't make a lot of sense in an investment world. "Think about the funds that you want to join and then think out two to three or four years. but that vintage of MBAs has turned out pretty well. Another suggestion was to make an effort to separate yourself from the other job candidates with special skills: "Take an unconventional path and be okay failing. venture capital firm Highland Capital Partners LLC. a partner and head of a New York-based private equity recruiter. perhaps only rivaled by the burst of the tech bubble. co-founder of Lux Capital Management." said Josh Wolfe. he advises to look into investor relations or risk management for private equity firms because positions such as the CFO or COO for a large firm can be highly lucrative and rewarding. a senior associate with Boston-based VC firm Spark Capital. private equity careers. This leads Rob Go. with one VC remarking: "In 2001 to 2003. we saw MBAs with anxiety. private equity. they concluded on an optimistic note. similarly spoke of thinking outside the box by seeking positions besides an analyst or partner. the private equity industry speakers suggested that hopefuls turn to alternate routes rather than focusing only on private equity." The moderator of the event. Many firms are imposing a freeze on hiring or even cutting jobs--see Carlyle cuts 10% of staff.html Davos 2009 | World Economic Forum Davos 2009 74 | P a g e .
Rubenstein concludes that very few will default but almost all will face some sort of restructuring or need some form of debt. Rubenstein. Rubenstein adds that prices still need to adjust to return to normal and attractive levels. Another great video to come from Davos is the interview with Bain Capital's Managing Director Stephen Pagliuca. he seems a bit more optimistic (consistent with his attitude over the last few months). private equity bain capital. For more information on the Carlyle Group visit the firm's private equity tracker profile. private equity capital. He also calls for raising the minimum capital requirements for banks because he thinks the banking system has been overleveraged. with the financial crisis. When asked what percentage of the deals executed within the last three years will end in default or restructuring. However. private equity carlyle. Mr. David Rubenstein of the Carlyle Group took a few moments for an interview at the World Economic Forum. private equity david rubenstein. To begin. This interview focuses primarily on the issue of failing banks in relation to private equity. Like Mr. private equity firms. While Rubenstein is concerned about the ability to obtain leverage to finance big deals. Significant private equity firms were represented at the World Economic Forum. private equity world economic forum Link to This Resource: Davos 2009 | World Economic Forum 75 | P a g e . Pagliuca sees the solution to the banking crisis and the return to obtaining loans from banks as clearing the poor loans off the banks books. among those firms are the Carlyle Group and Bain Capital. Mr. he defends private equity from being blamed for the current financial crisis. a new American president and global economic uncertainty it may be an accurate statement. Rubenstein is asked about the likelihood of regulating private equity to which he answers that hedge funds are more likely to face important changes in regulation than private equity. It's an interesting interview especially in light of the turbulant global economy. Tags: Private equity. As other industry commentators have noted.Private Equity at the World Economic Forum in Davos It may be an overstatement to say that this year's meeting in Davos for the World Economic Forum is the most important in recent years.
the U. the average size of Australian private equity funds and investors has been growing at a quickening pace.which are mainly taken up by venture capital funds. Some were led by wealthy Australian families.http://privateequityblogger. The following graph demonstrates the increase in the average size of funds by year of formation: The following is from Research Whitepaper on Australian Private Equity: Private Equity markets in Australia include both private equity funds. In the recent 5 years. which is now causing concerns to some of the acquired companies. Australia has been slow in accepting private equity firms relative to other countries like Britain.S. The leading Asian private equity funds are typically from Japan or Singapore at this stage. some were acquired by corporate advisory firms or investment firms from overseas as a way to diversify their interests geographically. Private Equity firms in Australia have been largely responsible to take over established businesses including retail and manufacturing industries. showing a maturing in the market. The majority of private equity firms based in Australia are interested in the traditional businesses or IT related businesses . especially Chinese owned private equity firms have been increasing their activities in Australia especially in the mining and resources sectors.html Private Equity Australia Private Equity Australia Private Equity in Australia Private equity markets in Australia are expanding but the country is still reluctant to embrace takeover bids for Australian companies. but nevertheless a growing market especially during the 2000-2007 era. venture capital funds and other capital providers including both equity and debt financing. Additionally. there was a starting of consolidation amongst private equity firms in Australia. Australian private equity firms have been increasing annually but at a slower rate. and Western European nations. In 2008. 76 | P a g e . but other State-owned.com/2009/02/davos-2009-world-economic-forum. a significant increase of new Asian based private equity funds operating or setting up their representative office in Australia. a lot of deals were debt funded with very high gearing ratios. The private equity market in Australia is relatively small.
equity investors and other finance professionals. Tougher conditions and new market players force companies to re-think their strategies and search for new innovative approaches. private equity markets in Australia Link to This Resource: Private Equity Australia http://privateequityblogger. The newly elected labour Government in particular has announced strong ties with China. The key factor for success is to be well informed and well prepared. and has opened for direct investments allowing Chinese nationals to invest directly in Australia . the similar trend is also likely to occur in Australia.com/2009/04/private-equity-australia. there has been increasing number of direct investments from Chinese financial institutions such as CITIC lately. a global research and international marketing company. private equity Australia. both the medium and large sized private equity firms. However. Still.In the medium term. effectively manage cash flows and 77 | P a g e . strategies for corporate finance and mergers and acquisitions will presumably have to adapt in new ways. and is now forming very close ties with Asia.html Private Equity Courses Private Equity Courses 2009 Calendar of Corporate Finance Courses In the tough economic conditions today. Australian private equity funds tend to operate differently than other private equity funds in the world . This is why Eureka Financial has come up with new set of financial courses which will help boost your career and prepare you for current challenges. the courses will give you a chance to improve your financial modelling skills. many corporate finance specialists believe that the current market provides interesting opportunities.previously this was usually done through a representative or delegate in Australia. this is set to change because of the rapid deterioration of mining sectors in Australia. We are already seeing increasing number of European and US private equity firms selling stakes to Asian based private equity funds including many State owned sovereign funds. Although the real impact is too early to predict. This is why Eureka Financial has launched a new set of courses designed to help M&A specialists.because of the nature of the business and heavy emphasis on mining and resources. private equity funds australia. Australian private equity. corporate financiers. Sydney private equity. The Australian investment market is certainly changing. Run by international trainers with many years of practical experience and who have been involved in numerous international M&As and LBOs transactions. Here is more from Eureka Financial: With the current market situation comes a new chapter for M&A and corporate finance. further consolidations to occur in Australia. Here is a link for a resource on private equity in Australia Tags: Private equity. Source: Research Whitepaper is a global reports portal website established Money Cat Consulting. and the recent strong investments in Australia's Rio Tinto is another good example how Chinese or Chinese Government sponsored private equity firms have now taking strong interest in Australian assets. private equity firms in australia.
870 withdrawn deals in 2007 valued at $1. You will be able to explore more complex issues of the M&A process as well as be prepared to help companies go through successful post-merger integration. 19-20 April 2009 London and 17-18 June 2009 Dubai Discounted Cash Flow Modelling for Corporates.1 billion" (Dealogic).Dates TBA For more information on Eureka Financial courses and a complete calendar visit this link.Dates TBA Post-Acquisition Integration Strategies. 10-11 June 2009 London. Here are links to Eureka Financial's latest courses: Book now and save up to £1200! Upcoming courses: Successful Strategies for M&As Intermediate Level. Whether you are an M&A specialist or work for a company which is thinking of getting involved in a merger or buyout of another company.com/2009/01/private-equity-courses. private equity education.300 transactions valued at $900 million vs.html Private Equity Chemical Private Equity Chemical New Buyers Replace Private Equity in Chemical Industry According to recent statistics. private equity studying. companies abandoned 1. 22-23 April London and 21-22 June Dubai Leveraged Finance Strategies Intermediate Level. private equity learning. Tags: Private equity courses. private equity books. 25-26 June 2009 London. total mergers and acquisitions deal volume fell almost 30% in 2008 compared to the previous year. private equity classes. For example. private equity. The difficulty in carrying out a private equity deal today is evident here: "In 2008. future deals are being put off or canceled. June 2009 Dubai .organise detailed due diligence in order to evaluate your potential targets. June 2009 Dubai . Banks and other financiers are much more hesitant to lend capital in the credit crunch. eureka financial Link to This Resource: Private Equity Courses http://privateequityblogger. especially those relying heavily on debt. making it very difficult to complete a private equity deal. 24-24 March London and 15-16 June Dubai Financial Modelling for M&As and LBOs . the current environment for big private equity M&A deals is that deal volume has fallen. you should attend one of our courses in order to become better prepared for the awaiting challenges.Intermediate Level. 78 | P a g e . existing deals are being abandoned.
com/2009/01/private-equity-chemical.com please see the start of our list of established private equity fund administration firms: Apex Fund Services Ltd is a global hedge fund administration solution for hedge funds. It's likely that the chemical industry will see an increase in deal activity again. private equity firms were awash with capital to finance acquisitions of major chemical companies. this time led by smaller chemical producers that can now buy competitively. private equity chemicals. The company uses the software solution. mirrored with top tier technology and competitive fee structures make Apex Fund 79 | P a g e . Other chemical industry companies are expected to follow Dow and Ashland's lead and seek merger partners while the industry is ripe. Inc. Private equity players seem to have actually helped the strategic buyers. who were pushed out by private equity's much larger capital capabilities.html Private Equity Fund Administration Services Fund Administration Private Equity Fund Administration In an effort to began building up a comprehensive service provider directory on http://PrivateEquityBlogger. private equity M and A. These strategic buyers have potential for executing highly beneficial deals because the companies can consolidate with other chemical firms. mergers and acquisitions. plus depreciation). New Buyers enter Chemical Industry Corporate deal activity in the chemical industry is being funded more and more by strategic buyers in the absence of private equity firms. Prior to the economic downturn. According to Forbes. Source Tags: Private equity chemical. The high demand driven up by the competitive private equity market pushed valuations far beyond realistic levels. private chemical Link to This Resource: Private Equity Chemical http://privateequityblogger. Highly qualified and experienced staff. "Private equity demand drove multiples above 10x EV/EBITDA (market capitalization plus debt minus cash divided by earnings before interest and taxes." This high price made sure that strategic buyers couldn't enter the chemical market and thus were forced to wait it out until valuations returned to more accurate levels. a fully integrated hedge fund accounting system combined with web-based reporting providing access to information 24/7 securely online.Without Private Equity. are able to use their capital accumulated during that period to finance large acquisitions in the chemical industry. fund of funds and private equity clients located in 10 separate jurisdictions across the world. Two recent examples of this trend are the eventual acquisition of Rohm and Haas by Dow Chemical as well as Ashland's purchase of Hercules. private equity activity. strategic buyers. PFS PAXUS. chemical mergers and acquistions. Now.
Services Ltd the clear choice for your fund administration needs. Please contact John Bohan the Group Operations Manager at 353 21 46 333 66 or firstname.lastname@example.org for a demonstration of our capabilities and free quotation. The highest concentration of private equity activity. Fund Administration. http://www. Private Equity Fund Administration Firms. the top ten countries are the same in either category--firm or portfolio company--only rearranged. The following chart reveals the geographic distribution of private equity in Europe.com/2009/01/private-equity-fund-administration.html Private Equity Europe Private Equity Europe Private Equity Europe | Geographic Distribution Private Equity Info has supplied some helpful data on the geographic distribution of private equity. Previously. Interestingly. France and Germany. I had shown the geographic distribution within the United States (for that post. Fund Administration Services. New York Fund Administration Link to This Resource: Private Equity Fund Administration Services http://privateequityblogger. is in the United Kingdom. Here is the list of private equity distribution by European country: Private Equity Firms Portfolio Companies 80 | P a g e . measured either by private equity firms or portfolio companies. follow this link).com Tags: Private Equity Fund Administration.ApexFundServices.
Country 1 United .Kingdom 2 Germany 3 France 4 Spain 5 Sweden 6 Italy 7 Netherlands 8 Belgium 9 Finland 10 Norway
% of total 31.1% 12.7% 12.2% 5.7% 5.7% 4.9% 4.6% 4.3% 3.8% 3.0%
Country 1 United Kingdom 2 France 3 Germany 4 Netherlands 5 Sweden 6 Finland 7 Italy 8 Spain 9 Belgium 10 Norway
% of total 25.6% 14.8% 11.9% 7.1% 6.6% 5.5% 4.5% 4.3% 3.9% 2.7%
2007 GDP (millions USD) 2,804,437 2,593,779 3,320,913 777,241 454,839 246,350 2,104,666 1,439,983 453,283 389,457
Source: Private Equity Info Tags: Private equity info, private equity, private equity distribution, private equity world, private equity data, private equity statistics, private equity Europe, private equity United Kingdom Link to This Resource: Private Equity Europe http://privateequityblogger.com/2009/01/private-equity-europe.html
CVC Capital Partners CVC Capital Partners CVC Capital Partners Succeeds in Raising Capital
A brief story of optimism in the private equity market is that of CVC Capital Partners. The private equity firm is noted in the Wall Street Journal for its ability to raise capital while many private equity firms are struggling. For CVC Capital Partners, finding private investors is not easy but not impossible. Despite the economic hurdles that make fundraising 81 | P a g e
so difficult lately, the European-based firm managed to pull in more than $14 billion in its latest round of raising capital. The most impressive part of CVC's success in raising investments for the sizable fund, its fifth, is that all the capital was raised in less than a year--after the biggest financial troubles emerged. After such an impressive round of fundraising, CVC Capital must now look at where to invest the capital raised. This task is exceedingly difficult for CVC, and other private equity firms due to the reluctance of banks to lend debt to finance major deals. However, CVC Chairman Michael Smith is confidant in the fund saying that it is large enough to finance big deals without the help of leverage. Other funds are not so large and are encountering considerable difficulty in the current economic climate. Mr. Smith says of the new fund "It's about investing in companies for the future and endeavoring to improve them."
Tags: CVC Capital, CVC Capital Partner, CVC Capital Partners, CVC Capital Partners Fund, Private Equity Fund, Private Equity Tracker Tool, Private Equity Funds, Private equity firms Link to This Resource: CVC Capital Partners http://privateequityblogger.com/2009/01/cvc-capital-partners.html
Chartered Hedge Fund Associate Chartered Hedge Fund Associate Interview with Founder of the CHA Program
As I have previously written, the hedge fund industry and private equity have a lot of similarities and some important differences (for more information on this, see Private Equity and Hedge Funds). Richard Wilson, who also runs a very successful blog on hedge funds, founded the CHA program last year to educate people within the hedge fund industry and especially those hoping to enter it. I have conducted a brief interview with Richard discussing the Chartered Hedge Fund Associate designation: What is the Chartered Hedge Fund Associate (CHA) program? Richard: The CHA Designation program is an online hedge fund certification program sponsored by the Hedge Fund Group (HFG) starting in 2008. The CHA Designation is a two part program. Level 1 helps participants gain a comprehensive base level of knowledge about the hedge 82 | P a g e
fund industry. Level 2 allows participants to specialize within a niche area of the industry such as marketing and sales, due diligence or analytics. What do graduates from the CHA program receive, as in what are the benefits from taking the program? Richard: For a list of the benefits from completing the program please see this page: http://chadesignation.org/CHA-DesignationBenefits.html. Our program also benefits hedge fund startups and sub $100M hedge fund managers. Here is how: http://chadesignation.org/How-ToStart-A-Hedge-Fund-Startup-Benefits.html How is this program connected to the Hedge Fund Group (HFG) and who decides what goes on the exam? Richard: The Hedge Fund Group (HFG) sponsors the CHA Designation and created it in 2008. There is a team of 5 professionals who have developed and maintain the designation and they are aided by an advisory board of approximately 55 professionals who work at hedge funds, fund of hedge funds and prime brokerage/auditing firms. Where are classes held? New York? How much do they cost. Richard: The CHA Designation is offered 100% online and tuition is $599 or $499 if you register within the first 24 hours of registration opening. The program and exam may be taken from anywhere in the world as long as the individual has a reliable internet connection. Last year we had participants from Hong Kong, UK, US, Canada, India and China. So the CHA Designation program is really international and not based within the Manhattan or any one location for that matter? Richard: Yes that is correct. How well-known is the program? Have mainstream media outlets interviewed your team? Richard: To some extent we have been covered. We have not graced the cover of the WSJ or any large American newspaper but we have been picked up by the Financial Times, Alpha Magazine, Institutional Investor and Job Search Digest. Most of these stories were ran in interview form. The Financial Times was the most thorough, we spent over 4 hours speaking with them and that doesn‘t count their inquiries to actual participants within the program as well. Is there anything else you want to mention here before we end this interview? Richard: We have much more information on our website: http://chadesignation.org/. If you would like to contact Richard Wilson to find out more about the CHA Designation or to sign up for the program, you can send him an e-mail to Richard@Hedgefundgroup.org
Tags: private equity hedge funds, private equity and hedge funds, hedge fund designation, chartered hedge fund associate, CHA Richard Wilson, Richard Wilson hedge fund interview, CHA Link to This Resource: Chartered Hedge Fund Associate http://privateequityblogger.com/2009/01/chartered-hedge-fund-associate.html
Contacting Private Equity Firms 83 | P a g e
Contacting Private Equity Firms Protocol Tips When Contacting Private Equity Firms Private equity firms field a lot of proposals from entrepreneurs and businesses seeking financing, with so many applicants private equity firms have to weed out the non-serious proposals from the professional ones. Even if you are an established company with a great investment opportunity, you could be dismissed because you contacted the private equity firm in an unprofessional or poor manner. Private Equity Info has a great guide to approaching private equity firms, I'll be following this up with a similar post on finding a private equity contact. Protocol for Contacting Private Equity Firms For best results (also the most professional approach), investment bankers first place a phone call to the key contact at the private equity firm for the deal at hand (see prior blog post about how to find the best contact at each firm). This introductory phone call: provides a brief introduction of the banker and his/her firm (very brief). gives the private equity professional a ―heads up‖ that the banker intends to send an executive summary. describes how the opportunity fits within the private equity firm‘s stated acquisition criteria or portfolio (or both). A good script might follow this pattern: ―Hi. My name is Bob. I‘m with XYZ Capital in [city]. We currently represent a client operating in the [fill in the blank] market. I noticed that you are active in this sector and think this would fit well with your [fill in the blank] portfolio company. Our client finished the year with $X EBITDA on $Y of revenue and has been growing a Z% per year. I just wanted to give you a heads up that I will be sending you the executive summary.‖ While this approach requires more effort, private equity professionals are much more responsive when a banker demonstrates that he or she has done the required homework. The good news - PrivateEquityInfo.com provides the information and research tools to simplify this process for you. By funneling potential deal flow to private equity firms that is aligned with their investment objectives, and by calling them in advance of sending, you set yourself apart from the crowd… and you will get a good response with this approach. Source: Private Equity Info Tags: Private equity contacts, private equity contact, contacting private equity firms, contact private equity firm, private equity firms, how to contact a private equity firm, private equity tips Link to This Resource: Contacting Private Equity Firms http://privateequityblogger.com/2009/01/contacting-private-equity-firms.html
Family Office List | Lists of Single and Multi Family Office Contacts Family Office List 84 | P a g e
List of Single and Multi Family Offices Looking for a list of family office contacts? Please complete the form below and a professional from the FamilyOfficesGroup.com will be in touch shortly.
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Articles Related to Family Office List 1. Investing Book 2. Family Office Services 3. Family Office Marketing 5. Philanthropic Giving Permanent Link: Family Office List Tags: Family Office List,Family Office Lists,Family Offices List, Lists of Family Offices, List of Family Offices, Family Office List, MultiFamily Office list, single family office list Link to This Resource: Family Office List | Lists of Single and Multi Family Office Contacts http://privateequityblogger.com/2009/03/family-office-list-lists-of-single-and.html
Private Equity Assets Private Equity Assets Private Equity Asset Prices Fall 85 | P a g e
The price that private equity assets are selling for in the secondary market has dropped, according to three years of data in a report by Cogent Partners. The average percent of net asset value (NAV) fell significantly in 2008, from an average of 84.7% in the first half of 2008 to a 61% average of NAV in the second half. This is a sharp departure from the peak in 2006-07 where assets traded above net asset value. Cogent commented that the current report is the lowest private equity asset prices since 2005, when the firm started recording asset prices. The private equity secondary market has been booming compared to the leveraged buyout market which has been largely inactive following the credit crisis. Many large private investors use the private equity secondary market to trade investments and capital committments to private equity funds. Private investors have used this market to dump private equity assets in an attempt to limit the investor's exposure. Interestingly, Cogent reports a significant difference between the figures reported by private equity funds to investors and the prices given on the secondaries market. The report reveals, "Prices in the secondary market are at a 40 percent discount to the values reported by private equity funds." This is consistent with other articles commenting on the way private equity funds often seem to have an unrealistic view of their investments. Source
Tags: Private equity, private equity insight, private equity assets, private equity asset, private equity asset valuation, private equity valuing, private equity valuation, private equity prices Link to This Resource: Private Equity Assets http://privateequityblogger.com/2009/01/private-equity-assets.html
Private Equity 2009 Private Equity 2009 86 | P a g e
Source Tags: Private Equity predictions.com/2009/01/private-equity-2009. for example last weeks report that deals have fallen to a five year low. private equity 2009. private equity could be a major catalyst for the market's rebound over the next few years by taking private many of the undervalued companies that are driving the market down.Will Private Equity Comeback in 2009? It has been a tough year for private equity. it has been an exciting year for Private Equity Blogger. Richard Wilson has a great tradition at his blog and I'd like to start the new year by making some resolutions: Private Equity Blogger 2009 New Years Resolutions 87 | P a g e . and in the first week of the new year I am sure many are wondering when private equity activity will return? BloggingBuyouts offers some thoughts on this coming year for private equity: The number of bad deals of the past few years has led to a growth in "loan to own" deals: vulture private equity firms that lend money to companies struggling under the weight of earlier buyouts with the goal of gaining control over the equity. new years private equity Link to This Resource: Private Equity 2009 http://privateequityblogger. private equity bloggingbuyouts.html New Years Resolutions New Years Resolutions Private Equity Blogger: New Years Resolutions Although it has obviously been a tough year for private equity and the economy in general. private equity blogs. 2009 private equity predictions. But 2009 could also represent a comeback for private equity in the traditional sense if credit markets loosen up. private equity advice. Interest rates are at historic lows and the stock market has taken a pounding leaving a number of profitable companies trading at valuations that make them extremely attractive takeover targets. The Wall Street Journal reports (subscription required) that buyout flops like Real Mex Restaurants and Bally Fitness are finding themselves under the ownership of new private equity firms after the original deals go south. writing hundreds of articles and making lots of great contacts. This blog has vastly exceeded many of my goals in expanding readership to more than 1.000 pageviews each day. If the credit markets return to normal levels of activity.
At least doubling visits to this blog from 1.000 to 2. person or other Solution to a problem and is designed to just get a conversation started. And of course. private equity industry. I recommend this book to anyone hoping to perfect their current pitch or learn how to get some interested in a potential business or investment opportunity. Expanding this blog's up-to-date coverage on the big and small events impacting the industry. operational due diligence strategies and selecting various private equity service providers. with an impressive career in leading and advising start-ups. private equity blogger. His experience working with start-ups like SalesLogix allows venture capitalists and hopeful entrepreneurs to learn from an active member of the start-up industry. I wish everyone a happy new year. venture capitalists and entrepreneurs would especially benefit from reading this. Begin using alternative media for posts like original videos. straight-to-the-point while entertaining (like an elevator pitch) and inexpensive. I am often contacted by entrepreneurs wondering how to attract investors to their idea and having a well-crafted elevator pitch is crucial.Writing more than 100 educational articles especially focused on finding a position with a private equity firm. Elevator Pitch Essentials is a concise guide to creating an effective elevator pitch by Chris O'Leary.html Elevator Pitch Essentials Elevator Pitch Essentials How to Create an Effective Elevator Pitch I recently read a valuable book on developing a great elevator pitch. If you'd like to purchase Elevator Pitch Essentials by Chris O'Leary visit this link: http://www. new years resolutions Link to This Resource: New Years Resolutions http://privateequityblogger. Tags: Private Equity 2009.000 daily pageviews and increasing subscribers to the Private Equity Blogger feed. project. O'Leary is a successful entrepreneur." Although an elevator pitch is essential for many careers. raising capital and attracting private investors. private equity industry. I'd like to say thank you for all the readers who have supported this blog as well as the private equity professionals and firms who have contributed their knowledge and experience. private equity.elevatorpitchessentials. One of the best aspects of Elevator Pitch Essentials is the author's sharing of his professional experiences. service. private equity 2009 year. audio interviews and hopefully a private equity "webinar. The book is brief. product.com/buy. This is in line with my hope to further provide information to those new to private equity and considering working in the industry. An elevator pitch is defined in Elevator Pitch Essentials as "an overview of an idea.html 88 | P a g e .com/2009/01/new-years-resolutions." Include more articles by knowledgeable private equity industry veterans. private equity future. Mr.
For those of you who are selling to family offices. Elevator Pitch. Elevator Pitch Tools. Within this powerpoint I found a list of services which are provided by family offices.Tags: Elevator Pitch Essentials. Planning and Preperation Investment Policy and Asset Allocation Portfolio Strategy and Manager Selection Portfolio Accounting Investment Performance Monitoring Alternative Investment Tracking (Hedge Funds. Tax Compliance.html Family Office Services | Components of a Family Office Components of a Family Office I just came across an educational PowerPoint presentation by a US-based family office firm. Real Estate & Private Equity) Trading Bookkeeping and Bill Payment Financial Reporting Cash Flow Management Estate and Wealth Transfer Management Insurance and Risk Management 89 | P a g e . what is an elevator pitch Link to This Resource: Elevator Pitch Essentials http://privateequityblogger.com/2008/12/elevator-pitch-essentials. about to work for a family office or are looking to soon engage a family office this list could be useful. How to Create an Elevator Pitch. Creating an elevator pitch. Elevator Pitches. Elevator Pitch Tips.
Single Family Office. wealth family office Link to This Resource: Family Office Services | Components of a Family Office http://privateequityblogger. Family Offices. Family Office. I hope this was helpful. Services by Family Offices.html Private Equity Deals Report Private Equity Deals Decline Private Equity Deals Decline to Five Year Low 90 | P a g e .com/2008/12/family-office-services-components-of. here are links to additional resources on family offices: Hedge Fund of Funds by Family Offices Family Office Marketing Family Office Wealth Management Tags: Components of Family Offices.Foundation and Philanthropy Management Personal Finance Management Concierge Services Data and Document Management If you are interested in viewing the full PowerPoint presentation you may find it by clicking here. Multi Family Office. Commercial Family Office.
According to Thomson Reuters. Keeping Clients Perhaps the biggest challenge to private equity firms is keeping their clients and making sure that they are confident in investing with 91 | P a g e . like the Blackstone Group which is trading about 1/5 of the price of its IPO of $31. Additionally. Along with the shaky market. accounting for only 7% of all Mergers and Acquisitions volume. Although America maintained its superior deal volume to Europe but only by a slight margin.7 billion in 2008. many deals that were put into motion before the financial crisis are now being put aside or canceled and some private investors are fighting to back out of the deal.Private equity deals have reached a new indicator of the troubled private equity industry.4% of buyout deals while Europe trailed by only 0. With significantly less leverage available (which firms have used to finance large deals in the past) it seems that it will be a while before private equity firms are executing multi-billion dollar deals like earlier in the decade.4%. It seems that other private equity firms considering a initial public offering have taken notice of the poor market response. accounted for 42. revealing just how troubled the private equity market may be. This is a 72% decline from 2007. The finance industry led the United States in private equity activity possibly hoping to profit from struggling companies.6% of M&A in 2006) and it is the lowest percentage since 2001. This a distinct change from the private equity giants that executed mega-deals only a few years ago (peaking at 20.S. All this has translated into sagging public investment in private equity firms. as KKR and Apollo Management have stalled their move to the public. private equity firms have had to persuade wary investors to join funds and maintain struggling portfolio companies. Deals Decline Buyout deals have especially declined. global private equity activity fell to a five year low of $188. The U. Energy and power were the most popular investment area with 17% of private equity investments.
in markets like this they cut back. private equity industry. I don't think the debt markets will come back immediately. as Reuters shows: Four out of five U. private equity report. David de Weese. and it's precisely the time they shouldn't. Especially after some endowments appear to have been burned this year (see endowments and private equity)." Source Tags: Private equity market. investors and nearly two-thirds of investors in the UK would refuse to re-invest if they felt funds had underperformed. private equity deals data.the firm. a senior member of Weil. "I think we will see reduced private equity activity in 2009.S." Private equity firms are struggling to maintain their investors. Professor Lerner is well-known within the venture capital world and serves as a senior advisor to the 92 | P a g e . other than transactions such as PIPEs that don't require so much leverage. Universities such as Harvard are among those trying to sell private equity assets. Sale of exposure to private equity funds has risen in the so-called secondary market as the years of high returns end.html Venture Capital Interview Venture Capital Interview Interview on Regulation of Venture Capital The Wall Street Journal has conducted an interview with Josh Lerner. and that supply will continue to significantly outstrip demand in 2009. on the the venture capital industry. But improvement may lie down the road. or lost some key members of staff. estimates that $130 billion to $140 billion of private equity will available for sale by institutional investors globally during the next two years. private data Link to This Resource: Private Equity Deals Report http://privateequityblogger. As University of Chicago finance professor Steven Kaplan comments "The question is. diverged from their core focus. private equity. As for the future for private equity. private equity 2008. This is especially important for the biggest clients like pension funds and endowments which may be more skittish about investing in the alternative areas like private equity or hedge funds. partner at secondary market specialist Paul Capital. with funds invested during the coming year expected to do better. how many limited partners will continue providing money? Historically. according to a recent report from secondary private equity asset specialist Coller Capital. private equity industry. sources have told Reuters. Gotshal & Manges LLP's private equity practice predicts. a professor at Harvard Business School. private equity deals.com/2008/12/private-equity-deals-report. Douglas Warner.
Wellesley. We need to revisit many of the ―reforms‖ of recent decades— from the strengthening of patent rights to Sarbanes-Oxley—and ask how they could be changed to minimize the harmful effects on entrepreneurs. from the hurried way in which they were designed by a few people behind closed doors to the design flaws that many experts anticipate will limit their effectiveness. if any. as we well know. He offers his views on the government regulation and its effect on venture capital. frequently taking large ownership stakes. 2008 saw the initiation of a massive Western experiment in the government as venture capitalist. From a patent system which has been overrun by sham litigation to the many barriers that public companies face. Yet. or at least partially designed to promote new enterprises? In some sense. there are a whole variety of policies that create barriers to entrepreneurship. governments responded to the threats of illiquidity and insolvency by making huge investments in troubled firms. Massachusetts-based fund of funds manager Grove Street Advisors. but as a very peculiar type of venture capitalist: one that focuses on the most troubled and poorly managed firms in the economy. wasting untold billions in taxpayer dollars. But one question has been lost in the discussion.and third-tier groups are having much greater difficulty raising new capital. some of which may be beyond salvation. While this is of course a frustrating turn of events from an individual perspective. our system has made it hard to be an entrepreneur developing advanced technologies. the global hubs of entrepreneurial activity—for instance. for every successful public intervention spurring entrepreneurial activity. In many nations. If these extraordinary times call for massive public funds to be used for economic interventions. Here the interview via WSJ: Your next book (Boulevard of Broken Dreams to be published this fall by Princeton University Press) addresses public efforts to boost entrepreneurship and venture capital. In your opinion. Meanwhile. and Tel Aviv—all bear the marks of government investment.‖ struggling for survival. in which some members of the European Commission and Parliament are proposing to ―micro-manage‖ investment decisions of private equity groups. In too many areas. The first is an evolutionary one. there are many failed efforts. Singapore. Not only have too many groups had mediocre returns for long periods of time.‖ Far more worrisome are some of the proposals emendating from Brussels and Strasbourg. Silicon Valley. the venture industry in many nations is on ―life support. while advancing transparency into an opaque industry that has prompted regulatory concern. The proposed financial reforms recently released by the Obama Administration suggest that more private equity and venture capital firms will have to register as investment advisors with the Securities and Exchange Commission. We are now seeing that many second. it cannot help but be seen as a healthy development. but they have undertaken a lot of ―me too‖ investments that have made it hard for everyone to succeed. the greater transparency may even be helpful to the industry itself in terms of getting a better sense of market conditions in ―real time. Many concerns can be raised about these investments. In fact. The second relates to public policy. What impact do you see this having on private equity or venture capital firms? It appears to impose quite modest costs on the industry. which is already underway. should they be entirely devoted to propping up troubled entities. does private equity and venture capital pose to the financial system? 93 | P a g e . what one or two changes would provide the biggest boost to venture capitalists? There are two sets of changes that could make a big differences. Moreover. from the point of view of the industry as a while. What systemic risks. How did you choose this topic? The financial crisis opened the door to massive public interventions in the Western economies.
What struck me most about this interview is how optimistic Mr. Grove Street Venture Capital Link to This Resource: Venture Capital Interview http://privateequityblogger. Private Equity Interview. It is a natural question whether private equity firms (both buyout and venture capital funds) pose such systemic risks. a Managing Director at the Carlyle Group offers some insight into the present and future of private equity deals in this interview with BusinessWeek. this issue has received little study. Mr. Venture Capital Josh Lerner. we are exploring how economic cycles between 1985 and 2007 affected sectors where private equity was and was not present.com/2008/12/venture-capital-interview. This new work will provide some insights into the impact of private equity in exacerbating or dampening economic crises.There have been repeated discussions regarding the desirability of increased regulation of financial intermediaries of all types. which may affect the economy in broad and unanticipated ways. Growth Capital Fund of the Carlyle Group focusing on mid-market private equity investments. Grove Street Advisers. The relevant trade associations have staked out strong positions arguing against the presence of such risks. Sturiale heads up the U. And so many private companies still think the company is still valued at what it should have been valued at last year 94 | P a g e . we are looking at whether the presence of private equity investments in given countries and industries led to more or less dramatic shifts in the face of economic cycles. In particular. "While there is a lot of fear that things could get worse. As part of our ongoing research initiative under the umbrella of the World Economic Forum. Tags: Josh Lerner. He also cites a problem with valuation in private equity: "I think there is still a lag between private company valuations and public market valuations. yet to date. Sturiale is in regards to the "current economic realities.S. Venture Capital Interview. how do you take advantage of the 09-10 markets that are going to open up?" Sturiale also predicts an uptick in private-to-private mergers. prompted by fears that the financial sector poses systematic risks.html Carlyle Interview | Managing Director Carlyle Interview Interview with Carlyle's Growth Capital Fund Manager Nick Sturiale. and lots of companies that will go public as soon as 2009-10. I think there is a lot of optimism: how do you create customer value." He is looking more into the near future of how his companies will be able to restructure and prepare for 2009-2010. Wall Street Journal.
Private Equity Interview. but I am now returning updating this blog daily as my schedule has returned to normal.. I received some interesting data from Private Equity Info that shows the largest geographical concentration of private equity firms and private equity portfolio companies as well. adjust their balance sheets and cut excess costs.. Nick Sturiale. Private Equity Carlyle... he concludes that private equity firms and boards have to align themselves with the market value because it doesn't make sense for to pay a higher price to take a firm private than what the firm will go for when it's taken public.....000 companies held by private equity firms to give an interesting view of where firms are located and where they invest. For more information on the Carlyle Group including recent news stories visit the Carlyle Group's private equity tracker profile. That said. The hard part is.or a few months ago. The focus is on providing financial support to portfolio firms to expand globally. Private Equity Valuation.com/?fr_story=5b69b68d3708f75da9dc1d5bb8e18acea71934b8&rf=rss Tags: Carlyle Group.html Private Equity United States Private Equity United States Private Equity Firms and Portfolio Companies by State It has been a while since I have been able to post here.businessweek. Private Equity Future. Portfolio Companies 95 | P a g e . that's just not the reality.. he suggests that the focus is less on trying to executing new major deals but working on restructuring existing portfolio companies. Carlyle interview.. Private Equity Info sampled over 1.. E-mail subscribers can view the video at this link: http://feedroom.com/2008/12/carlyle-interview-managing-director. Carlyle Group Managing Director." So. Because of the aforementioned valuation dilemma. Carlyle Link to This Resource: Carlyle Interview | Managing Director http://privateequityblogger.000 private equity firms and more than 10. Geographical distribution of private equity firms and portfolio companies Private Equity Firms .
California and Illinois. The largest concentration of firms are in New York. with 80% of U. private equity firms located in 10 states. The companies held by private equity firms are more widely dispersed by states.This data shows the high concentration of private equity firms in the industry. 96 | P a g e .S.
97 | P a g e .
com/2008/12/private-equity-united-states. private equity portfolio companies. private equity location. private equity firms by state. private equity companies Link to This Resource: Private Equity United States http://privateequityblogger. private equity firms.Source Tags: Private equity states.html Private Equity Entry Private Equity Entry New Information on How People Enter Private Equity 98 | P a g e . private equity investment.
this data suggests that it is not necessarily a requirement: 99 | P a g e . new information from the Private Equity Database reveals that less than half of people in all positions at a private equity firm hold an MBA. Although MBAs are definitely useful for working in private equity. However. This is surprising because many people consider an MBA a prerequisite to entering the private equity industry.Degrees in higher education are held by many private equity professionals. the most common of which is a Masters in Business Administration (MBA).
Source Tags: Entering Private Equity. Although the value and number of deals executed so far during this year have declined. There are many various paths people take to entering private equity even in the highest positions at private equity firms. Private Equity Data. but capital raising for private equity funds remains strong. Private Equity Position.html Private Equity Investment 2008 Private Equity Funds 2008 Largest Private Equity Funds of 2008 It's a little early for this. As the following image shows: Here is the latest list of the largest private equity funds 2008: 100 | P a g e . but PitchBook Data has put together a list of the largest private equity funds of 2008.com/2008/12/private-equity-entry. The full report reveals that private equity fundraising has increased by 29% in the first three quarters of 2008 compared to the same period last year. Private Equity Entry. Private Equity MBAs. Private Equity News Link to This Resource: Private Equity Entry http://privateequityblogger. Private Equity MBA. Private Equity Positions.I have spoken with many young professionals hoping to break into private equity but feel that not having an MBA prevents them from working in private equity.
list of private equity funds Link to This Resource: Private Equity Investment 2008 http://privateequityblogger. largest private equity funds in 2008.com/2008/12/private-equity-investment-2008. Private Equity 2008. 101 | P a g e . Largest private equity funds."How can I get a job with a private equity firm? There are many answers and we are slowly developing a complete section of our site to help you answer this question for yourself.Tags: Private Equity Funds. Private Equity Data. Private Equity Funds 2008.html Private Equity Firm Jobs | How to Get a Job in Private Equity Private Equity Firm Jobs Private Equity Firm Jobs | How to Get a Job One of the frequent questions we get is . Our most recent additional resource to this part of our website is the result of some recent negotiations with a private equity job listings website which you may use for a discount if you believe it would help you find a position in the industry.
hedge fund and investment banking jobs. Hot-Tub maker Jacuzzi." the five he refers to are: the retail chain Clair's. when the company filed for bankruptcy and set about liquidating its assets.com/2008/12/private-equity-firm-jobs-how-to-get-job. compensation data. on October 28th 2008. With the poor performance of many companies backed by Apollo private equity funds. simply go to private equity Private Equity Job Center. The company was purchased by Apollo and other investors for $1. but this year has been a trial for Apollo Management. private equity. To add to Apollo Management's difficulties.com has negotiated a special $10 first-quarter discount on subscriptions to Job Search Digest. one of its subsidiaries owns Hexion Specialty Chemicals which recently offered $28 a share to purchase the Huntsman Corporation. Mr. Private Equity Jobs. Since 2002. the Countrywide real estate company in Britain and casino-chain Harrah's. Deutsche Bank and Credit Suisse.html Apollo Private Equity Apollo Private Equity Private Equity Firm Apollo Management's Tough Year Apollo Capital was ranked sixth this year in Financial Week's list of top private equity firms and seventh by Fortune. lost its $365 million investment in the home furnishings retailer. Private Equity Job Search.3 billion but the new owners struggled to turn Linens-N-Things around. Getting a Job in Private Equity. Realogy (owner of Coldwell Banker and Century 21). Apollo Management then attempted to kill the deal but was told by a court that it could not. or Investment Banking Job Center Tags: Private Equity Firm Jobs. Many challenging investments lie in the portfolio of Apollo's sixth fund. How to Get a Private Equity Job.6% internal rate of return to investors from creation of the fund to September this year.‖ And he points out that the loss to his investors was only half a percentage point on return. Black took some responsibility for the failed venture saying to the New York Times that Apollo "underestimated the severity of the downturn of the housing market. Black admits that five of the fund's investments are "cyclically challenged. Linens-N-Things. The deal was estimated at $10. Every day their team researches all the online job boards (including the specialty niche sites) and captures only the most relevant jobs—giving you a competitive advantage in your job search. 102 | P a g e . Hedge Fund Job Center. Early this year though. Private Equity Job. Mr. They also provide profiles of specialist executive recruiters. This was a major blow to the private equity firm but Linens-N-Things is not the only Apollo investment that has floundered recently. Job Search Digest has helped finance professionals be much more effective with their job search. a unique career resource for finding venture capital. the firm is struggling to maintain its impressive investment record. Private Equity Link to This Resource: Private Equity Firm Jobs | How to Get a Job in Private Equity http://privateequityblogger. Then. In 1990. and other resources aimed at making your job search more efficient.PrivateEquityBlogger. One insider who claims to have knowledge of the fund's performance says that the fund has had a negative 12. To get started and claim your discount on any one of their services.6 billion and financed largely by two banks. Leon Black formed Apollo Management and grew it into one of the largest private equity firms managing more than $20 billion. The Apollo Group.
Apollo Management Holdings. This does not necessarily represent a collapse in the private equity industry. a partner with Bass. According to the WSJ: ―Reputational risk no longer exists. Private Equity Apollo Management. but they are marginally more justified in saying ‗we need more proof of solvency to lend this much money. 103 | P a g e . Berry & Sims. remains optimistic saying that he has faced economic adversity before and produced good returns still.‖ So. Mitch Walker. Apollo Group. Apollo Private Equity Funds. but the firm's head. now Apollo is left with "trying to figure out how to make an unwanted marriage work out and how to persuade the banks to be a part of the nuptials.‘‖ Walker told Deal Journal." The situation at Apollo Management is concerning.‖ one dispirited investor told Deal Journal.html Private Equity Trends Private Equity Trends Report of Private Equity Trends 2008 A new report offers an overview of the last three quarters of private equity trends and where the industry is today. The private equity industry has begun to significantly feel the effects of the financial crisis. Source: NYT and WSJ Click here to see other firms in our Private Equity Tracker Tool Tags: Apollo. Apollo Private Equity.the two banks said they would not finance the deal because they think that the two companies merged will be insolvent.Black. as evident by the Carlyle group's recent cuts and the latest data revealing reductions in the number and value of private equity deals. Apollo News Link to This Resource: Apollo Private Equity http://privateequityblogger. Private Equity.com/2008/12/apollo-private-equity. PitchBook Data has put together a brief report showing current trends in private equity and which industries is private equity investing. Apollo Management LP. sees its differently: ―So far I haven‘t had much sympathy for the banks. they would be in considerable trouble with shareholders and the Treasury. but more likely illustrates that many private equity firms are exercising caution toward working in such an adverse climate as well as the lack of credit available for big deals in the current market. Mr. ―If they made loans to a company that became insolvent.
The above chart shows that private equity deals have significantly dropped. such as Media & Information and Consulting Services.4% for the first three quarters of 2008 compared to the same period in 2007. followed closely by Consumer Media with 49 deals.8% and total capital invested fell 21. Business Products & Services accounted for 35% of the deals in 3Q 2008.' Financial Services: 'Capital Markets/Institutions led this sector with 23 deals in the first three quarters of 2008.' Consumer Products/Services: 'Consumer Durables led this sector with 54 deals in the first three quarters of 2008.7% and total capital invested fell 76% for the first three quarters of 2008 compared to the same period in 2007.' 104 | P a g e .' Energy: 'Exploration. Number of deals fell 14% and total capital invested fell 58. The number of deals fell 33. followed by Energy Services with 30 deals. Energy accounted for 7% of the deals in 3Q 2008. Financial Services accounted for 5% of the deals in 3Q 2008. Consumer Products & Services accounted for 25% of the deals in 3Q 2008. followed by Insurance with 22 deals. To find out where this decline is occurring. Production & Refining led this sector with 46 deals in the first three quarters of 2008. The number of deals and capital invested both fell 39% for the first three quarters of 2008 compared to the same period in 2007. The number of deals fell 20. and predictions for the fourth quarter of 2008 are similarly low. led this sector with 230 deals in the first three quarters of 2008. PitchBook has broken down the last three quarters of private equity activity by investment sector: Business Products/Services: 'Commercial Services.3% for the first three quarters of 2008 compared to the same period in 2007.
An even more remarkable note is that this is the first time in the Carlyle Group's twentyyear history that it has made a firmwide staff cut. marking the first of the major private equity firms to announce firmwide layoffs. Carlyle Group. SemGroup LP which filed for Chp.7% and total capital invested fell 91. and the fall of its mortgage securities hedge fund Carlyle Capital. Showing that even the mega-buyout firms are vulnerable to the financial crisis. private equity trends report Link to This Resource: Private Equity Trends http://privateequityblogger. private equity trends 2008.html 105 | P a g e . After a recent surge in hiring. A Carlyle Group spokesman explained the move. private equity trends. in fact. Yet this is far from a collapse of the Carlyle Group. 11 bankruptcy in July (SemGroup was only last year ranked 18th largest private company). David Rubenstein. Carlyle Group Loss. Carlyle Group DC. followed by Communications & Networking with 29 deals. private equity report. Information Technology accounted for 10% of the deals in 3Q 2008. followed by Devices & Supplies with 29 deals.com/2008/12/carlyle-group.4% for the first three quarters of 2008 compared to the same period in 2007. Healthcare accounted for 11% of the deals in 3Q 2008. in its 64 funds there is around $40 billion in uninvested capital and it is raising an estimated $14 billion for its next buyout fund. Also the Carlyle Group is shutting down its less than one-year-old office in Silicon Valley. trends in private equity 2008. Carlyle has taken measured steps to balance its cost structure with the current investment climate.' Information Technologies: 'Software led this sector with 42 deals in the first three quarters of 2008.4% for the first three quarters of 2008 compared to the same period in 2007. private equity trend.6% and total capital invested fell 54. private equity data. the Carlyle Group will be reducing its staff to 2007 levels.html Carlyle Group Carlyle Group Carlyle Group Cuts 10% of Staff The Carlyle Group announced today that it will be reducing 10% of its staff. Tags: The Carlyle Group.com/2008/12/private-equity-trends. group and Carlyle.' Source: PitchBook Data Tags: Trends in private equity. Carlyle Group Investment.Healthcare: 'Healthcare Services led the this sector with 72 deals in the first three quarters of 2008.‖ The Carlyle Group has already had its share of public setbacks this year after the failures of Hawaiian Telecom. the WSJ reports. ―In response to extraordinary market conditions. Number of deals fell 26. The firm is well positioned to take good care of our investment portfolio and has the resources to create and respond to compelling investment opportunities. Number of deals fell by 44. Carlyle Group Companies Link to This Resource: Carlyle Group http://privateequityblogger. Caryle Group.
The head of restructuring at JP Morgan. said that because companies have been overleveraged. 30. These companies are also running into difficulties more quickly. Speakers at the Debt Brief Europe conference agreed that there will likely be an unparalleled amount of trouble for private equityowned companies. investment director at Nomura Mezzanine. which expects the 5 year global high-yield default rate to rise from 10. asking for a waiver or rearranging their debt structure. around half of private equity buyouts made in the last three years will run into trouble.2% in September to 35. with the time from financing to experiencing problems with covenant tests decreasing considerably in the past two years when compared with 2006. ―One of the problems is everyone is looking into a black hole of economic morass. The estimates given by participants in the Debt Brief Europe conference added to recent pessimism over the future of private equity.Buyout Market Buyout Market Debt Bankers Predict Trouble in Buyout Market Leveraged finance bankers predict that half of all private equity buyouts that have been completed within the last three years will struggle. compared with the prior 12-months. especially in regards to buyouts. S&P found that in the 12 months ended Oct. He believes that buyouts need to be deleveraged because there is a lack of credit available in the market for buyout deals.1% in 2013. according to S&P. This coincides with an increase in the number of private equity-backed companies breaking contract. waiver requests or related restructurings among speculative-grade industrial companies in Europe. ―If anybody who runs an investment portfolio tells you they have no problems in it they‘re a bare-faced liar. Moody's Investment Services. there was a 100% increase in covenant breaches. Peter Jaffe. more than tripling in just five years.‖ A discouraging estimate came from rating provider.‖ said Ryan McGovern. a Japanese debt provider. Source 106 | P a g e .
Private Equity Wall Street Journal.. Private Equity Future. Private Equity Conference Link to This Resource: Buyout Market http://privateequityblogger.Tags: Private Equity News.html Korea Private Equity Korea Private Equity Private Equity Investment Returns to South Korea 107 | P a g e . Private Equity U. Private Equity Outlook.com/2008/12/buyout-market. Private Equity Europe.K. Private Equity Market.
Today. Lone Star was regarded as a savior because it poured large amounts of investment into the struggling economy. private equity investors are increasingly active in the country hoping to benefit from broke conglomerates selling off assets at bargain prices.4 in profits and possible evasion of South Korean taxes. Lone Star Funds was investigated by South Korea for its planned sale of Korea Exchange Bank which would earn the American firm $4. The scandals led to public 108 | P a g e . Eight years later. Another investigation into bribery and embezzlement led to the arrest of three men with connections to the fund. changed the private equity landscape in the country. a Texas-based private equity firm. private equity firms adopted a low profile in South Korea. But after a criminal investigation into a United States private equity fund. Following the financial crisis. Private equity firms played a major role in South Korea's recovery from the Asian Financial Crisis by rescuing distressed companies from bankruptcy. Then a high-profile criminal investigation of Lone Star Funds. however.South Korea successfully recovered from the 1997-1998 Asian Financial Crises and was looking to foreign investors to stimulate growth.
Financial services and pharmaceutical companies are also attractive during the economic downturn. private equity investment in South Korea. as investors hope to purchase cheap assets from large South Korean companies. like the Carlyle Group and Newbridge Capital which both more than doubled their returns on South Korean investments. Today. Most private equity firms that invested after the Asian Financial Crisis made huge returns.outcry and a general distrust of foreign investors in the country. Source Tags: Korea private equity. managers expect the deals to be considerably smaller than before because of limited access to leverage in the credit crunch.com/2008/11/korea-private-equity. Despite such proven success. foreign private equity investment is returning to the country in full force.html Private Equity Change Private Equity Change Changes in Private Equity 109 | P a g e . Private equity investment in korea." are suffering from massive amounts of debt and need to sell their assets to stay afloat and pay off their obligations. private equity investors had remained cautious following the Lone Star debacle. Korean private equity. Private equity firms have considerably increased activity in the country recently. are eying the country and banking on a more welcoming attitude from South Korea's new government. but a recent ruling suggests the drawn-out legal battle may be ending. "chaebols.6 in value so far this year from the year before. Managers say that consumer goods makers are an attractive target for private equity because they are less vulnerable to the economic downturn. have made South Korea an attractive location for private equity investors specializing in buying and selling distressed assets. In order to survive large to mid-size companies-many involved in mergers or acquisitions--are selling off non-essential and even core assets. south korea private equity. Family-owned businesses. That closure along with a more welcoming stance by South Korea's government has led private equity managers to reconsider the country with its new set of potential investments. private equity firms in south korea Link to This Resource: Korea Private Equity http://privateequityblogger. which are being sold off at bargain prices. Although private equity investment seems to be returning to South Korea. The potential lies in the assets of large conglomerates based in South Korea. such as CVC Capital Partners and Affinity Equity. Major private equity firms. The country's financial difficulties coupled with the declining value of the won. The debt accrued by South Korea's 30 largest conglomerates rose 59% to a combined $50 trillion won (almost $34 billion USD). Thomson Reuters reports that M&A deals involving private equity firms have more than doubled to $3.
One of the rationales for the firms making this shift is that. the asset class itself may be free from the mantra of "bigger equals better. redemption terms tend to be long. for private-equity funds. but investors need to understand that these companies will not be the private-equity funds of old -. With a number of investment banks fatally wounded. Royal Bank of Scotland sold $8 billion in bank debt to private-equity firms.may well prove to be a shrewder move than branching out as the big boys are doing. Alongside a number of hedge funds. Also. Here is an exert. and away from their entrepreneurial roots of buying private companies and turning them around. However. such as corporate finance advisory services. By converting to publicly owned companies. The heads of these mega-private-equity firms may also sense that there is a bigger prize at stake. inherent in the partnership structure -.as opposed to the public structure that KKR and others seek -. the value of which is realized on an irregular basis. This presents the new providers of capital with a different form of the problem that the rest of the banking system faced recently: unpredictable assets and predictable liabilities. private equity firms going private.that is. taking the place of traditional investment banks. Sticking to their knitting -. One way for the newly public funds to manage this mismatch is to focus on earning steady. This shifts the core work of these funds toward fee-earning work. like KKR's delayed move to be a publicly traded company. This may be what the private-equity behemoths have in mind. Entities which used to be the borrowers had become the lenders. This gives them the edge in providing long-term capital. to read the full article please follow this link. including Blackstone and TPG.is the understanding that payouts are variable and unpredictable because they are based primarily on volatile investment performance. Those firms that stood their ground in the mid-deal market and ignored the ever-growing thirst for bigger funds could once again become the standard bearers for the private-equity industry." The remaining funds will be able to focus on their original task of extracting buried value from unlisted companies. these entities place themselves at the mercy of shareholders who value regular fees over the variable and volatile ones that come from the traditional work of private-equity funds. In a recent example.and must adjust their expectations accordingly.The Wall Street Journal has a great article on the private equity's changes in light of the credit crunch and financial crisis. And what lies ahead for the rest of the private-equity industry? Once the behemoths move into other businesses. pre-agreed management fees rather than focusing on volatile investment performance. there is scope for other sources of capital to emerge. the larger private-equity funds were until recently in the process of positioning themselves to provide this capital. 110 | P a g e . focusing on what investors want from them in the first place and maintaining the alignment of interests through a commitment to the underlying investment performance -. are evaluated in such a volatile market.
The survey revealed that a major consideration for private equity firms was the pension liability. private equity article. private equity story. An increase in life expectancy would make a more costly private ownership for the firm and potentially cause the private equity firm to hesitate before investing. private equity news. Above all pension-related concerns for private equity firms is the probability of future life expectancies increasing. private equity changes. Of the sixteen firms surveyed.html Private Equity Pension Private Equity Pension New Report on Private Equity and Pensions A recent survey found that private equity firms still see pension funds as a major concern when investing. changes in private equity.com/2008/11/private-equity-change." This report shows that pensions are still a major obstacle for private equity firms when trying to make a deal. private equity wall street journal. This is especially troubling when considering big manufacturers like in the auto-industry that have large pension liabilities. which would in turn increase the liability to the private equity firm. "More than 80 per cent of survey participants see making an agreement on a deal with a pension scheme‘s trustees as a significant hindrance to completing a deal.Tags: Private equity change. adding to the already difficult market for private equity deals. A new survey shows that private equity deals are significantly hindered by consideration of pensions. private equity industry Link to This Resource: Private Equity Change http://privateequityblogger. Source 111 | P a g e .
the situation for private equity firms has distinct similarities to today.com/2008/11/private-equity-pension. private equity pension fund. Most importantly. a private equity firm would supply the necessary resources or capital for a distressed company to succeed. "The deals that work for us as private equity players are those in which companies need liquidity to keep going. Today's economic downturn seems to be presenting similar turnaround targets. private equity investment pension. private equity pension funds. where there is a business worth saving and where we can get 112 | P a g e . Where are the best opportunities? Jon Moulton of Alchemy Partners explains the basic criteria he uses for a turnaround. private equity pension.html Private Equity Turnaround Private Equity Turnaround Discussion of the Private Equity Turnaround Market Today's economic downturn may lead to an increase in the number of turnarounds performed by private equity firms.Tags: Private equity pensions. in 2003 the market was flooded with companies failing presenting many opportunities for private equity-backed turnarounds. private equity pensions fund. Although it is five years past. thus completing a "turnaround" of the company's performance. I revisited a discussion published to AltAssets in 2003 with some private equity players that specialize in turnarounds. making this Q&A very relevant. private pension funds Link to This Resource: Private Equity Pension http://privateequityblogger. In this type of deal.
They are fundamentally feeble businesses." What are your main obstacles? The most obvious obstacle is labor laws and protections against downsizing companies.management control." Again. What would you not consider for a turnaround? Jon Moulton says. a specialist in turnarounds and public to privates in the UK Gary Klesch. Moulton makes an especially relevant coorelation to today. we find other people to implement that strategy. a US and European firm that makes 113 | P a g e . I am also very suspicious these days of manufacturing. because that work cannot be outsourced abroad as easily. This is a key way in which to trim the budget and many distressed companies do have a lot of excess personnel. we set the strategy but we don't get involved in the day-to-day management of the business. We are also staying away from the construction industry." But there are few companies that actually meet these requirements so the market for potential turnarounds becomes very small. Gary Klesh has several industries he is staying away from. "The not so obvious obstacle is trying to restructure when you have a sick banking system around you. Another opportunity is in companies threatened by China (and India)." Banks that are reluctant to work with risky companies make it all the more difficult for a turnaround. It's brutal territory and a very unattractive activity for anyone to be involved with. especially the automotive industry.it's not always an easy sell to managers. services such as advertising agencies and consultancies. the threat from Asia means that heavy industries are not great opportunities because countries like China can manufacture so much more cost-efficiently than Western countries. But we are in negotiations with companies in all other areas that are quite sick. which specialises in investing in European companies in need of restructuring Ollivier Lemal. chairman of Klesch & Co. We are looking at some turnarounds in which the key issue is a dramatic restructuring to get rid of pension liabilities. you never know the depth of the hole you are puttying money into and then the money at the end is usually pretty slight. turnarounds are a lot of work and there is a lot of pressure involved .S. I won't go into business that are reliant on the skills of particular people. We have had no success in those and neither has anyone else. As the manufacturing process is outsourced to China by many U.they are shell-shocked and can't make decisions. "We wouldn't do a large contracting turnaround. the services industry. These businesses are swimming against the tide and they often have large pension and environmental liabilities. and European automakers they fall into distress with excess workforce and resources. So companies focused in manufacturing industries are less attractive for a turnaround than say." Jon Moulton. Turnarounds are not always attractive to managers so one challenge "is finding the right people. When we turn around a company. It's very tough dealing with banks on a day-to-day basis . directeur general of Plantagenet Capital. This could be a great position for a private equity firm to cut the company to the bone leaving a more efficient company with only what is necessary to survive. It is very difficult to get these people. managing partner of Alchemy Partners. " I wouldn't touch pharmaceuticals and other industries that are heavily reliant on research and development. As you can imagine.
private equity turnarounds. private equity distressed. Jordan. Niemaszyk 847-382-1627 ron. Our principals and staff are known for assisting fund managers through every phase of their business. private equity distressed debt company. 1. Contact Info: Ronald S. many firms need superior executives at the helm in such difficult times and private equity groups often provide management that is experienced and capable of making the changes necessary for survival.com 2. distressed private equity company. private equity investment turnaround. Ltd. Private Equity Turn Around. Our team of experienced professionals services funds from around the country.early-stage venture.niemaszyk@jordanpatke. strategic buy-out and turnaround investments The future of private equity turnarounds is not clear but there are more and more companies facing insolvency and private equity investment could be the best solution for filling that capital gap. private equity investment turnarounds Link to This Resource: Private Equity Turnaround http://privateequityblogger. While the performance of their services cannot be guaranteed by this private equity website. from fund formation to ongoing communication with investors and regulators.org 114 | P a g e . Here is the full discussion from AltAssets Tags: Private equity turnaround.com/2008/11/private-equity-turnaround. If you would like to add your investment firm's bio here or explore other advertising options please email Richard@HedgeFundGroup.html Private Equity Auditors | Auditing Firms Private Equity Auditors Private Equity Auditing Firms The following is a list of recommended private equity auditors and private equity auditing consultants. Our focus on efficiency and extensive use of technology allows us to offer a top quality service at extremely competitive rates. Additionally. Jordan. Patke & Associates is a firm that specializes in the audits of private equity funds. we only work with a very small number of well established reputable firms in the industry. Patke & Associates.
private equity employees have been more or less exempt from the mass layoffs on Wall Street. With the massive amount of hiring during the peak of private equity. Primack notes especially the high number of analysts that have little to do with the lull in private equity deals. Private Equity Audit Link to This Resource: Private Equity Auditors | Auditing Firms http://privateequityblogger. there are now a large number of unnecessary personnel. Private Equity Auditor. A trademark of private equity is the ability to trim the unnecessary fat from a firm's budget and it seems that this process may be used on private equity firms themselves. With less and less deal activity this may be a necessary--even saving--manuever for some private equity firms to stay afloat in rough times.Tags: Private Equity Auditing Firms.html Private Equity Layoffs Private Equity Layoffs Private Equity Firms Hint at Possible Layoffs So far. Auditing Service Providers. 115 | P a g e . Audit for a Private Equity Fund. Dan Primack of peHUB reports the latest rumors that suggest this may not be the case soon: I‘ve begun asking senior industry sources about the prospect of private equity firm layoffs. I‘ve even heard that a few brand-name firms have begun holding internal discussions about across-theboard personnel cuts.com/2008/12/private-equity-auditors-auditing-firms. A big reason for the potential layoffs is the lack of deals being made right now at the big private equity firms. Auditing Services for Private Equity Funds. and most of the replies have been in the range of probably to definitely. Private Equity Auditors. but the talks are too formative (and perhaps speculative) for me to feel comfortable naming names. Other targets for layoffs in the private equity firms are senior executives that have impressive salaries for unimpressive deal-making records.
Private Equity Budget Link to This Resource: Private Equity Layoffs http://privateequityblogger. Jamplant. Private Equity unemployment. Private Equity Firms Fire. (YHOO) made another big decision to sell Kelkoo to a private equity firm. Kelkoo was purchased by Yahoo for $576 million in hopes of boosting its global service capacity. Private equity news.5 billion. In 2004. Private Equity. Yahoo Private Equity Deal. last week Yahoo announced that Chief Executive Jerry Yang would step down for a new CEO to step in. The terms of the Kelkoo deal with Jamplant have yet to be publicly disclosed. Private Equity Layoff. basedprivate equity firm. Source Tags: Yahoo. Then. Microsoft's CEO. Kelkoo private equity purchase. Jamplant Ltd. Jamplant Ltd.500 jobs.html Private Equity CFO Private Equity CFO Private Equity CFO | Chief Financial Officers 116 | P a g e . 21 by a Yahoo spokesperson.. Former Kelkoo CEO disclosed the news on his blog here is the link (it may have to be translated from French though). Yahoo (YHOO) Link to This Resource: Yahoo Private Equity Deal http://privateequityblogger. Yahoo private equity. The sale of the France-based shopping price comparison company to U.com/2008/11/private-equity-layoffs. Steve Ballmer.html Yahoo Private Equity Deal Yahoo Private Equity Deal Yahoo's Kelkoo Sold in Private Equity Deal (YHOO) After announcing that it would be cutting at least 1.500 jobs at the company. Private Equity Management. was confirmed on Nov. confirmed that Microsoft will not be resuming takeover talks with Yahoo. Private Equity Firing. Earlier this year Yahoo rejected a takeover bid from Microsoft for $47. sending Yahoo's shares even lower.com/2008/11/yahoo-private-equity-deal. Yahoo Mergers and Acquisitions.K. The sale of one of its major assets adds to the shaky environment at Yahoo Inc. Yahoo Inc.Tags: Private Equity Layoffs. Private Equity Employment. All while it is in the process of reducing at least 1.
exciting position in private equity with a risk of losing money in the new job or remaining in a stable. Additionally. Brownstein illustrates the point.Over the last few years private equity firms have succeeding in attracting many chief financial officers from jobs at large public companies. Private Equity CFOs. ―Every CFO we have is part of our network. today's private equity CFO also takes on a major interest in the company's capital structure and finances. many CFOs welcome the risk because the huge monetary incentive if they are able to produce positive results and make the company attractive to the public or another buyer. Chief financial officers often give up a safe and consistent job with great pay for the career in private equity but find that not all private equity firms are successful. Source Tags: Private Equity CFO. More Valuable as a Private Equity CFO Despite the tech burst. It‘s a critical role. private equity chief financial officer conference Link to This Resource: Private Equity CFO 117 | P a g e . according to Chad Brownstein a managing partner at ITU Ventures in Los Angeles. high-ranking positions to work for private equity firms and their portfolio companies. Chief Financial Officer in Private Equity." Now it seems that private equity firms are willing to pay a CFO higher and offer a more prominent within the company. the CEO often dominates the lower-level executives like the CFO but many cheif financial officers working in smaller private equity-backed companies are regarded as vital to the success of the company and treated with more attention. In private equity. when making the decision to transition to private equity they may have to prepare for a period of unemployment. chief financial officers may feel undervalued or unappreciated at a standard post within a firm. One negative aspect for entering the private equity industry is that many private equity CFOs must move from company to company as their services are required. record keeping and protecting against risk. CFOs are a "hot commodity" and the private equity model allows them to showcase their talents in an important way. he says "Before. Rather than focusing mainly on accounting. The challenge of taking an underperforming company and having a vital role in its success can be appealing to CFOs unsatisfied in their current work. CFOs are then faced with the decision between taking a potentially higher paying. Chief financial officers also make the move for the possibility of sharing in the immense profits from a successful private equity deal when the portfolio investment is sold to another buyer or taken public. even with the inherent risks. The idea of moving to a private company may be attractive to an experienced CFO because private equity-backed companies are often in a transitional period that allows for the chief financial officer to use his talents to improve the company. CFOs working in private equity have taken on a different role than they did a few years ago. Private equity firms are willing to compensate chief financial officers very competitively because there is a high demand for executives with experience managing a company's finances with a wide range of responsibilities including financial planning. Mr. These CFOs opt out of cushy. Private Equity Chief Financial Officer. Private equity Chief Financial Officer. venture capital firms hired smart numbers guys from accounting firms (as CFOs) that the CEO could manage.‖ As chief financial officers anticipate a greater role and higher compensation in private companies the transition from large public companies to smaller private equity firms may become more and more attractive. In many large public companies. Although CFOs are in high demand. which showcased the risk to those working at private equity-backed firms. We are working equally as hard to get the right CFO as the (right) CEO. well-paying job with one company.
html Private Equity Growth Private Equity Growth How Private Equity Firms Promote Growth 118 | P a g e .http://privateequityblogger.com/2008/11/private-equity-cfo.
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Private equity firms vary in their investment industries, region, size and many other factors but there is a common goal among all private equity firms: to take a company with potential for growth and provide the resources necessary to realize that potential. Private equity firms do this by injecting capital, prescribing a new strategy, restructuring the company or adding new talent to the existing management team. The success of a private equity firm depends on its ability to realize the growth potential of its investments and thereby satisfying investors with profitable returns from the investment. Private equity firms are always looking for underperforming companies that are not realizing their growth potential either because they do not have the resources necessary for expansion or they are poorly managed. Companies that are underperforming are attractive because private equity talent pride themselves in being able to take the company and turn it into a more efficient and valuable firm, using the resources available through the private equity firm. The private equity firm then hopes to profit from the held company by either holding an initial public offering or selling to another buyer, giving positive returns to the limited partners of the fund. A key advantage of private equity firms holding a company is that it can focus on long-term needs and changes, unlike many public companies. Investors in public companies may not see the benefit of investing in a company long-term, fearing it would reduce short term investments. But with private equity funds focusing in the long-term, the fund can invest in research and development that may hurt returns in the short-term but create greater returns over time. By utilizing the vast resources available to private equity firms, many companies have profited impressively under private equity ownership. In this way, private equity can be a great way to promote a company's growth potential.
Tags: Private Equity Growth, Private Equity Grow, Private Equity Firms, How Private Equity Firms, Private equity firms growth, private equity capital, private equity performance, private equity investment Source Link to This Resource: Private Equity Growth http://privateequityblogger.com/2008/11/private-equity-growth.html
Private Equity Law Private Equity Law Top Private Equity Law Firms
Private equity firms, along with hedge funds, have often tested the legal limits of investing and have been the subject of lawsuits by institutional investors and various entities, even the federal government. The risky practices of the private equity industry can sometimes lead to the courtroom and many buyout firms have found it wise to work closely with attorneys. Private equity firms do not only seek lawyers for protection from lawsuits but lawyers often advise private equity firms on organizing funds' structures, drawing up and negotiating contracts. The boom in the private equity buyout industry led to the rise of many law firms specializing in private equity and the relationship between attorneys and private equity remains an important one. 120 | P a g e
PitchBook Data has compiled a ranking of the top 10 private equity law firms: Top 10 Private Equity Law Firms 2008 Kirkland & Ellis Jones Day Skadden Arps Slate Meagher & Flom Weil Gotshal & Manges Simpson Thacher & Bartlett Latham & Watkins Paul Weiss Rifkind Wharton & Garrison O'Melveny & Myers Hogan & Hartson Ropes & Gray Please send me an e-mail at Theo@peblogger.com if you'd like discuss adding your law firm to the private equity law firm directory. PitchBook Data Tags: Private Equity Law, Private Equity law firms, private equity law firms list, list of private equity law firms, top private equity law firms, top ten private equity law firms, top private equity law Link to This Resource: Private Equity Law http://privateequityblogger.com/2008/11/private-equity-law.html
Investment Training & Certifications | Professional Designations Investment Training Investment Training & Certifications | Designations
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Below are a series of articles hosted by HedgeFundBlogger.com on investment training programs available for those professionals who are looking to work through a certification program which could help them move their career forward: Chartered Hedge Fund Associate (CHA) Financial Designation on Hedge Funds | New Site Chartered Financial Analyst CFA CFA Discussions | Exam and Forum Discussion CFA vs. CAIA Chartered Financial Analyst (CFA) Study Tips CFA Study Materials CFA Salary | Average Starting CFA Salary Ranges | 1 Page Guide CFA Study Guide | The One Page Guide to CFA Study Guides CFA Institute | Exams, Books, Resources & Standards CFA Pass Rate How to Study for the CFA Exam CAIA Study Tips | CAIA Test Study Materials Guide CFA Registration CFA Online Exam 122 | P a g e
CAIA Preparation Notes | CAIA Exam Prep Guide CAIA Exam Level 1 2 3 | Prep Questions CFA Study Guide CFA Level 1 Exam Details CFA Courses CFA Designation Guide | 1 Page Guide to the CFA Designation Chartered Alternative Investment Analyst (CAIA) Tags: Investment Trainings, Investments Training, Investment Certification, Investment Certifications, Investment Designation, Investment Designations, Financial Training, Finance designation Link to This Resource: Investment Training & Certifications | Professional Designations http://privateequityblogger.com/2008/11/investment-training-certifications.html
Private Equity Companies Private Equity Companies List of Largest Private Equity Companies
A lot of public attention toward private equity falls on large formerly public companies being backed by private equity. Companies like Chrysler and Toys R Us are familiar for many Americans and they are among the largest private equity owned companies. Private Equity Database has constructed a great ranking of the largest American private equity owned companies. This table is constructed from Forbes' 2008 list of America's largest companies and edited to include only the companies owned by 123 | P a g e
private equity firms. PE Database makes a good observation that the majority of the deals were executed between 2005 and 2007 during the boom of private equity buyouts in the United States. Private equity buyouts of public companies like those of this list are in decline. Many observers attribute this decline to the global credit crunch making it more difficult for buyout firms to obtain leverage as well as the overall instability of the economy. List of Largest Private Equity Companies Rank Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chrysler GMAC Financial Services HCA US Foodservice Toys R Us Aramark ‗07 Rev (bil), (1) $59.7 $31.49 $26.86 $20.16 $13.79 $13.2 Private Equity Owner (s) Cerberus Capital Cerberus Capital KKR, Bain Capital, Merrill Lynch Private Equity KKR, Clayton, Dubilier, & Rice KKR, Bain Capital, Vornado Realty GS Capital Partners, CCMP, Thomas H. Lee, Warburg Pincus Apollo, TPG Capital, Blackstone Group KKR Blackstone Group, Wellspring Capital Madison Dearborn Partners Blackstone Group KKR KKR, TPG Capital, GS Capital Partners TPG Capital Apollo Deal Size Announced (bil) $7.2 $14.0 $21.0 $7.1 $6.6 $8.3 $27.8 $6.9 $1.3 $7.3 $26.0 $29.0 $45.0 $1.7 05/2007 04/2006 07/2006 07/2007 03/2005 08/2006 10/2006 03/2007 01/2008 05/2007 07/2007 04/2007 02/2007 08/2006 -
Harrah‘s Entertainment $10.83 Dollar General Performance Food Group CDW Hilton Hotels First Data $9.9 $9.48 $8.15 $8.09 $8.05
Energy Future Holdings $7.99 Aleris International Hexion Specialty Chemicals Freescale Semiconductor Keystone Foods $6.6 $5.81
Blackstone Group, The Carlyle Group, Permira, TPG Capital Lindsay Goldberg
09/2006 2004 124 | P a g e
GS Capital Partners. As there are somewhat less opportunities around the West coast for events like these (outside of California).3 $5. I thought some readers may be interested in attending.1 $5.com/2008/11/private-equity-companies. private equity public companies. list of private equity companies. private equity owned companies. Silver Lake Partners Fidelity Capital Silver Lake Partners.2 06/2007 03/2005 01/2005 05/2005 11/2006 01/2007 18 19 20 21 22 23 24 25 WL Ross TPG Capital.95 Source Tags: Private equity companies. KKR. (1) $5.15 $3.2 $11. The event is sponsored by FundingPost which has hosted over 100 sold out venture capital events in 17 cities 125 | P a g e . largest private equity owned companies Link to This Resource: Private Equity Companies http://privateequityblogger. TPG Capital.0 Private Equity Owner (s) Deal Size Announced (bil) $8. companies owned by private equity.html Arizona Venture Capital Arizona Venture Capital Arizona Venture Capital Event| AZ Venture Capital I was recently contacted about a venture capital and angel investor event in Sedona.98 NewPage Neiman Marcus OSI Restaurant Partners McJunkin Red Man $4. Providence Equity Cerberus Capital TPG Capital Bain Capital. Arizona. The Blackstone Group.1 $3. Catterton Partners GS Capital Partners SunGard Data Systems $4. private equity owned company. Bain Capital.Rank Company International Auto Components Avaya Pro-Build Holdings ‗07 Rev (bil).3 $2.66 $4. private equity company.60 $4.31 $5.
the panel of investors will focus on Early-Stage Venture Investing . both before the panel & afterwards at the Cocktail Party. The venture capital speakers include Laura Sachar. Kingdom Venture Partners Craig Ballard. sectors that these VCs look at. additional advice for entrepreneurs.html San Francisco Private Equity San Francisco Private Equity San Francisco Private Equity | Private Equity Firms List 126 | P a g e . The event begins on Thursday. President. Arizona Venture Capital event. things that are most important to them when they are considering an Investment. Arizona Venture Capital investors. the best ways to reach these and other Investors. The cost of attending the Arizona venture capital event is $75 with discounted room rates depending on party size. Pacific Southwest Ventures Dee Riddell Harris. Arizona Private Equity. Arizona Angel Investors. hot sectors. StarVest Partners Rob Moss. The information for the event can be found at FundingPost's website but here are the basic details.com/2008/11/arizona-venture-capital. There will be plenty of time for networking with the Investor panelists. Managing Partner. Venture capital in Arizona. and. the best and worst things an entrepreneur can do to get their attention.how to meet investors. December 4 2008 with an optional pitching workshop from 11am-1pm with a 2-minute opportunity to pitch to investors and the main event is from 2pm-7pm all at the Sedona Rouge Hotel & Spa. Here is the site's description of the event: At our next Sedona event. pitch them. Arizona Angels Venture Group. Arizona Venture Capital Conference. General Partner.over the last 6 years. The event includes a panel discussion and various opportunities to network with investors and other entrepreneurs. and what it really takes to get them to write you a check! We will be discussing trends in Early-Stage Investing. AZ Venture Capital Link to This Resource: Arizona Venture Capital http://privateequityblogger. General Partner. Tags: Arizona Venture Capital. of course.
Along with the high amount of wealthy investors in and around the Bay Area. In this decade's peak in private equity. especially in the West Coast. San Francisco remains a popular location for private equity groups hoping to capitalize on both coasts. As the technology sector matured following the dot com boom and bust. I am in the process of expanding the following list of San Francisco private equity and venture capital firms. List of San Francisco Private Equity Firms Alpine Investors. "Marketing would have been a waste of time. San Francisco private equity is not exclusive to technologies but it is a common investment for firms in the Bay Area. Hellman & Friedman.San Francisco represents a major location for private equity activities in the United States. In 2004. private equity firms began to invest in the now more stable and accurately valued tech companies with apparent success." After that boom. San Francisco private equity firms are also able to reach other cities like Portland or Seattle that have fewer private equity firms. although it is far from including all San Francisco firms." Golden Gate Capital's managing director expressed similar sentiments when describing the easy fund raising efforts. remarked after closing its $3. Many firms open a branch in San Francisco in addition to a typical East coast location like New York City or Boston. I have not seen any free directories of private equity firms in San Francisco so I have built a list. "We could have raised any amount of money. Surprisingly. the chairman of San Francisco's major private equity group. Along with a widely recognized venture capital industry--spurred on by Silicon Valley tech start-ups--San Francisco has built a hub for larger private equity deals. if you know of any any private equity groups based in San Francisco please e-mail the name(s). Of course. San Francisco was flooded with institutional investors eager to get in on the private equity scene. LP Aldrich Investors Calera Capital Champlain Capital Partners Dorset Capital Management 127 | P a g e .5 billion fund.
San Francisco Private Equity Firms List. Fleischer and Lowe Generation Partners Genstar Capital LLC Golden Gate Capital Harris McCall & Associates Gryphon Investors Hellman and Friedman JH Partners Partech VC Saints Capital Serent Capital TSG Consumer Vista Equity Partners Tags: San Francisco Private Equity. California Private Equity. San Francisco Venture Capital Firms. San Francisco Private Equity Firm Directory Quote Source Link to This Resource: San Francisco Private Equity http://privateequityblogger. San Francisco Private Equity Industry.com/2008/11/san-fransisco-private-equity.Francisco Partners Freedman. San Francisco Private Equity Firms. San Francisco Venture Capital. California Private Equity.html Venture Capital Investment Venture Capital Investment Strategies for Obtaining Venture Capital Investment 128 | P a g e .
Get to Know the Venture Capitalist. If At First You Don't Succeed. Tags: Venture Capital Investment. marketable and has all the components of a sound investment obtaining venture capital is possible. VC. working with venture capitalists. Be Honest About Your Proposal: Venture capitalists are very good at judging the authenticity of a proposal and if the numbers don't add up to your predictions they won't trust you and won't invest in you. Highlight the good aspects of your business but don't distort the facts about competition or capital needs to make it more appealing to the VC.. While originality is key it is nothing if the idea is not marketable. Venture capital funds invest in companies that they believe will be profitable because some of those profits are returned to investors. so an ideal proposal is very marketable/profitable and unique. While there is no simple solution for attracting venture capital investment. you should be doing the same by getting a sense for his business ethics. venture capital firms.com/2008/11/venture-capital-investment. management style and any factors that could potentially damage the partnership. While you're interviewed by the venture capitalist. venture capital and private equity investment Link to This Resource: Venture Capital Investment http://privateequityblogger. but marketable: This is a very important aspect for venture capitalists because a revolutionary idea has huge profit potential.. Too: Venture capital funds typically invest in companies for a number of years so it's important that the VC is someone you can work with.Everyday I receive e-mails from entrepreneurs wondering how to obtain venture capital for launching a start-up or for expanding their small business. venture capital funds. so don't be afraid to fail in your first talk with a venture capitalist. raising venture capital.html South Africa Private Equity South Africa Private Equity Private Equity Investment in South Africa 129 | P a g e . venture capital private equity.: Venture capital firms are notoriously fickle about selecting companies to invest in. here are some basic rules to keep in mind for making your business idea more attractive to venture capitalists: Make sure your business idea is unique. If your business is unique. finding venture capital.
this makes the United States the biggest contributor of total funds raised to date and not yet returned to investors (followed closely by South Africa and then the United Kingdom). valued at R8. Private Equity investment in South Africa. According to the report. 2007. and American investors also contributed 39% of funds raised the previous year. nearly doubling in size from 2006 to 2007. Tags: South Africa Private Equity.3 billion. Most notably.7% to 2. Private Equity South Africa. Other highlights of the report from Dec. a major jump that brought the percentage of South Africa‘s GDP from private equity funds under management up from 1. This is it is important to keep an eye on this exciting country that is gradually growing into an important emerging private equity market. emerging markets like South Africa will take on a critical role in private equity. sources. As many investors look for regions outside the United States and UK. South Africa‘s private equity industry holds R86. United States investors have shown a major interest in doing business in South Africa.5 to R15.6 billion under management as of December 31. 31 2006 to Dec. 64% of funds raised during 2007 were from U. South Africa Venture Capital.South Africa‘s private equity industry is showing promising growth in recent years. 31 2007 include: • An increase of funds raised annually from R14. Africa Private equity 130 | P a g e .8% in the same period. compared to December 31.S. 2006 at R59. The Venture Capital and Private Equity Industry Performance Survey that analyzed South Africa‘s private equity market from 20062007 reveals a booming economy with impressive achievements. Another major increase from the end of 2006 to the end of 2007 was the number of funds under management by independents which rose by 74%. South Africa has demonstrated that it can maintain a stable economy that fosters growth in the private equity industry.3 billion • Investment activity increased 270% in the one year period. Africa obviously has problems in maintaining stability in many nations--both political and economic--but South Africa has been receptive to private equity and its financial markets are developing to meet the global standards. spurred on by Bain Capital‘s big buyout of Edcon. This is a 46% boost in the industry. South Africa Private Equity Guide.7billion • Private equity activity reached the Global top 10 for the first time.
The book is written in a simple language that does not require prior knowledge of private equity but uses the ideas that private equity firms use to extract value and promote efficiency. The case studies used in this book illustrate the point that utilizing private equity methods for managing a firm has led many public companies to success." Develop the Blueprint: Develop a plan for achieving that goal. Rather than a comprehensive book on private equity.com/2008/11/south-africa-private-equity. Make Equity Sweat: This is a fundamental aspect of private equity firms managing a company." 131 | P a g e . I hope to develop a library of helpful private equity books on this site and I am working on putting together an e-book that will be available for free download as a complimentary resource for readers here. The authors provide a step-by-step process for success: Define the Full Potential: Use strategic due diligence to set a target "increased equity value. I am currently reading a book on valuation and another on constructing a successful elevator pitch.Link to This Resource: South Africa Private Equity http://privateequityblogger.html Private Equity Book Private Equity Book Book Review | Lessons from Private Equity This is the first book review on this blog but in the future. I will be adding more recommended books on private equity. concise guide to restructuring and employing profit-maximizing practices applicable to any firm. relying on "managing working capital aggressively. Lessons from Private Equity Any Company Can Use is a smart. Lessons from Private Equity is a memo to CEOs describing the basics of private equity and how the fundamental goals of private equity firms can be used to improve any company. and working the balance sheet hard. Accelerate Performance: Putting the plan into action by matching the blueprint to your company and overcoming obstacles to success. disciplining capital expenditures. The Sealy Corporation and Nestlé are the most prominent examples referred to throughout the text as examples and indeed both these firms have demonstrated great business management skills in producing profits to public investors (Nestlé more so than Sealy in recent years). Harness the Talent: Hiring the individuals that can make your company's blueprint a reality by either looking inside the company or seeking outside talent.
Private Equity Education. The ideas put forward are not counter-intuitive. Private Equity book review. Private Equity Resources. Gadiesh serves as the chairman at Bain and has been listed on both Forbes' "The Hundred Most Powerful Women in the World" and the "Most Powerful Women in Business". Lessons from Private Equity is accurately priced low because of its short page-length but I found a great deal of value in this little book. but also applies to entrepreneurs managing small companies. they rely on basic strategic due diligence to identify underperforming areas and people to establish a more effecient firm. Private Equity Books.Foster a Results-Oriented Mind-Set: Take the private equity disciplines learned in the book and implement them permanently into your firm's culture and periodically reevaluate your company to ensure it is maintaining the formula for success. The strength of Lessons from Private Equity lies primarily in its brevity (it is just over 100 pages long) and its straight-forward approach.com/2008/11/private-equity-book. Tags: Lessons from Private Equity Any Company Can Use. Reviews of Private Equity Books Link to This Resource: Private Equity Book http://privateequityblogger. This book is ideal for executives and young professionals hoping to reach the higher rungs of a company. Lessons From Private Equity. The authors of Lessons from Private Equity are Orit Gadiesh and Hugh MacArthur are both experts in improving management from the large private equity firm Bain & Company. MacArthur heads Bain's Global Private Equity business and advises private equity firms on strategic due diligence on targeted firms and improving performance of those companies.html Private Equity Deals Private Equity Deals When Will Private Equity Deals Return? 132 | P a g e .
and for anything to start looking up. It could be late into next year. Many banks have tightened the purse strings and are more hesitant to provide private equity firms with the leverage necessary for the mega-buyouts like during the industry's peak a few years ago. we are seeing the confidence to do deals now. this underscores an important footnote to any panel discussion like this. at outlook conferences at the end of last year!" Unfortunately. all of which may or may not happen by the second half of last year. Jonathan Colby. especially ones relying on leverage. Private equity conference 133 | P a g e . Carlyle Group: It will probably be the second half of next year before we see any real activity. Private Equity Questions. while it is important to hear what the big dealmakers are projecting. transaction volume for leveraged buyouts and growth capital financings was 1. DLJ Merchant Banking Partners: It‘ll be a multi-year crawl back that will start in the middle market. The return of private equity deals relies on many variables like investors and private equity firms regaining confidence. Nicole Arnaboldi. that it's very difficult to estimate when deals will be made more frequently. the financial crisis resolving. a 34% decline from 1. Private Equity Deal. Buyout reports. say. So. PEHUB. Bruce Bowden. it's worth noting that predictions like these are probably nothing more than (highly) educated guesses. Summit Partners: The time is now. With discipline. we‘re going to need a sign.268.935 deals over the same period a year ago. Erin makes a good point responding to Colby's estimate: "The ―second half of next year‖ sentiment was certainly reminiscent of something I‘d heard before. banks lending like before. private equity deals volume. Head of M&A. So an important--and difficult-question is when will private equity deals return? Erin Griffith from PEHUB reports some of the answers given by the panel at The Deal's 2009 PE Outlook Conference: Martin Mannion.According to Pitchbook Data "For the first three quarters of 2008. Nokia: The end of this year will be a disaster." With the credit crunch and the ensuing financial crisis it has been a tough year for executing buyout deals. Buyout Deals. Tags: Private Equity Deals. Private Equity Buyouts.
Especially in times of turmoil. By having a longer time frame to carry out the adjustments. The emphasis of these commitments is long-term because limited partners typically commit to private equity funds for at least 5 years and as long as 10 years for some fund. and after a couple years the private equity secondaries market was more reasonably priced to the actual value. scrambled to sell off their investments that were rapidly sinking in value. the volume of transactions in the secondaries market rose from an estimated 2-3% to 5%. This is where the secondary market for private equity proves useful to investors who want to exit their longterm investment. The reason is mostly that private equity funds seek to maximize profits of portfolio companies by restructuring and reducing the areas that cut into profits. To be successful. A great example of this is the aftermath of the Dot-Com crash where many private equity investors. The secondaries market has seen a large boom recently as many private equity investors are selling their investment commitments at considerably lower prices than the estimated value. private equity investors may want out and in this event activities in the secondaries market surge. The financial crisis and low performance of many private equity funds has led to this major push to 'dump' private equity investments even at a short term loss because the investors believe that it could get worse or cannot afford to remain committed to the fund as long as they are obligated. a large amount from tech-focused venture capital funds.com/2008/11/private-equity-deals. This led to a massive influx of undervalued investments. As the private equity secondary market becomes more and more popular. private equity firms prefer a longer time period to make the changes and for good reason. however. This may change again. private equity firms are able to find what is best for the company's success rather than worrying over producing near-immediate returns to investors. similar to public exchange markets. similar to 134 | P a g e . as many nervous or hurt private equity investors are selling off investment commitments seemingly at a much lower price than the actual value. The private equity secondaries market is a way for private equity investors to exchange pre-existing investor commitments. the secondary market for private equity is a market for the buying and selling of capital commitments to private equity funds by limited partners.Link to This Resource: Private Equity Deals http://privateequityblogger. private equity investment is different from the public investment markets where anyone can purchase shares of publicly traded companies. especially those in venture capital funds. it's important to have an understanding of what the secondaries market for private equity is. By definition. This is also a concern of private equity for limited partners because they attach themselves to the fund for such a long time period. during which various problems could occur within the investment or beyond (such as the current financial crisis) which causes the investor to want to cash out early.html Private Equity Secondary Market | What is the Private Equity Secondary Market? Private Equity Secondary Market Private Equity Investors Turn to Secondaries Market Generally. During the time period of the Dot-Com bubble's burst and the subsequent retreat by limited partners. A big difference though is that the private equity secondaries market is involves trading illiquid assets of long-term commitments to private equity funds.
The secondaries market is of special importance as private equity investors look to the private equity secondaries market as an exit for their declining investment or to avoid expected declines. Private Equity Secondaries. There are several variations on the basic sale of a limited partnership interest: a structured joint venture is a typically more complicated exchange where the buyer and seller negotiate terms that suit both parties. Types of Transactions on the Private Equity Secondaries Market Sale of Limited Partnership Interests: The most common transaction on the private equity secondaries market is the sale of limited partnership interests. A tail-end transaction deals with the interest in a private equity investment that is nearing or has passed its expected life. private equity investors. Securitization is an option for investors that want some liquid assets by investing its limited partner interests into a new vehicle. A stapled transaction is a negotiated agreement when a general partner is raising another fund which ties the limited partner's current fund investment to the new fund. Sale of Direct Interests: This is different from the sale of limited partnership interests because it trades a direct investment in operating companies rather than in an investment fund. Link to This Resource: Private Equity Secondary Market | What is the Private Equity Secondary Market? http://privateequityblogger. venture capital fund. Partial source: Wikipedia Tags: Private Equity Secondary Market. Synthetic secondary transaction occurs when a secondary investor purchases a limited partnership holding a portfolio of direct investments. A secondary direct transaction is the sale of a captive portfolio of direct investments that must be either actively managed by the buyer or the buyer is supposed to arrange for a manager. often a collatoralized fund obligation which issues notes or other liquid assets to the investor in return. secondaries market. secondaries. Nearly all private equity funds (mezzanine fund. limited partnership agreements. financial crisis.the aftermath of the Dot-Com collapse. Private secondaries market. selling limited partnership capital commitments.com/2008/11/private-equity-secondary-market-what-is.html 135 | P a g e . angel investor fund etc) can be sold on the secondaries market and many investors use this to sell capital commitments to funds to other investors hoping to benefit from what they think is a undervalued investment.
private equity executives are being recruited for their active managing skills. The ability to restructure companies and increase the value of firms is an important talent that private equity executives are known for. so they are turning to private equity. So it would seem that while investment banking firms are reported today to be axing another 70. Source: FT Tags: Private Equity executives.000 job cut on Wall Street. Private equity executives management teams.‖ According to Mr.000 jobs. As reports reveal an expected 70. Davidson. I will be writing a review and summary for this book later this week as today's article shows that the ability to master restructuring and value-adding is crucial to succeeding in such a down market. offers an overview of this strategy in relation not only to private equity firms but any firm trying to increase productivity and boost value.Private Equity Executives Recruited Private Equity Executives Recruited Banks Recruit Private Equity Executives Recruited As banks have struggled to realize returns on their investments under the sagging economy. private equity CEOs. private equity executives are being competitively recruited by these banks. Davidson. but the demand has increased under the pressure of the financial crisis this year. FT reports that some banks have sought help from private equity executives to actively manage floundering companies. an especially important ability as many of these firms face collapse if new management cannot correct the situation. Lessons from Private Equity. they are taking on new talent from the private equity industry. private equity investment banks. many have turned to private equity management teams for help. Phillip Davidson of KPMG explains why banks are hiring private equity executives: ―The idea is to hire people who can actively manage these companies and sit on their boards to nurture them along and put the right managers in. but private equity executive management teams are. the private equity management teams are comprised of 5 to 15 people. value-added. Banks are generally not skilled in improving the performance of companies. Banks are outsourcing the work to private equity executives who are able to restructure firms and extract profits. ―These are not things that banks are equipped for. most often investment banking. private equity banks. While banks are slashing other branches. Private equity and the financial crisis Link to This Resource: Private Equity Executives Recruited 136 | P a g e .‖ said Mr. private equity investment. The book. He says that some of these teams were recruited by banks last year.
many schools are said to be reassessing their endowment investment portfolios. During the bull market of the previous few years. In light of the financial crisis and negative predictions of investment returns this year. Wesleyan.com/2008/11/private-equity-executives-recruited. when it totaled $1. to help cut $10 million to $15 million in expenses in the next few years. June 30. many universities saw their investment portfolio returning very favorably and took on expensive long-term construction and remodeling projects for the campus. (Barron's) The financial crisis' impact is not limited to the smaller colleges though. hedge funds and "real" assets ranging from oil to timber. which have a strong portion invested in private equity and hedge funds. Maine's Colby College said its endowment has fallen by a similar amount since its peak a year ago.. Yale. is delaying the construction of a major science building and filling vacant positions only when necessary. These universities caught public attention when they received impressive returns by putting their endowments in alternative investments like private equity and hedge funds. Conn. Cornell is freezing most hiring and delaying new projects. Importantly. it seems university administrations are rethinking bold initiatives and reigning in spending: The president of Amherst. Some critics have argued that the universities should place more funds in traditional stocks. Yale and Princeton are said to be feeling the effects as well. a Massachusetts liberal-arts college. the large East Ivy-league schools Harvard.html Endowments and Private Equity Endowments and Private Equity Universities Suffering From Low Investment Returns The financial crisis appears to be hurting the nation's universities with many schools being forced to scale back spending and make major cuts to stay afloat. Now. Although most universities will not release their endowment returns until the end of the academic fiscal year.7 billion. in Middletown. Princeton and Harvard have recently focused the majority of their endowment funds in private equity. All three devoted most of their funds in those three groups with Yale and Princeton claiming 70% is invested there and Harvard invests only slightly less in the three areas at 57%.http://privateequityblogger. bonds and mutual funds that have less risk and the argument has been somewhat bolstered by the shaky performance of private equity and hedge funds. recently said its endowment is off about 25% since June 30. 137 | P a g e . many universities have imposed a spending freeze and made budget and employment cuts. however th e widespread expectation is far from optimistic.
As universities become more cautious of investing in private equity they have sought to sell off much of their purchased stakes to the secondary market." Meaning that those limited partners turning to the secondary market are willing to sell off their investments at far less than normal. Yale Endowment Link to This Resource: Endowments and Private Equity 138 | P a g e . pensions funds like the California Public Employees Retirement System represent a huge percentage of capital for private equity funds. "The going rate is said to be about 50% of stated investment values. illustrating a growing concern that alternative investments are going to decline further in value than they already have. This represents a major problem for private equity firms who rely largely on major investors like these universities for capital calls. Harvard Endowment. Private Equity and Colleges. Endowments. Private Equity Universities. Private equity Endowment investment. as pension funds could follow the universities lead. Endowment Private Equity. Tags: Private Equity. Universities using their endowments to invest in private equity has built a strong relationship and the potential loss of this investment source could spell more bad news for private equity. Private Equity University. A domino effect is also a concern for private equity groups. According to Barron's. Princeton Endowment.
com/2008/11/endowments-and-private-equity. Dartmouth's Tuck Business School introduces business students to private equity through their Center for Private Equity and Venture Capital. For those hoping to enter private equity. there are some schools that offer a specific focus on private equity. Top Private Equity School List With that said. While attending a recognized business school is helpful for a career in private equity. a passion for working in the private equity industry and a strong work ethic. Some general partners at private equity firms or hedge funds have different backgrounds than what is stereotypical for the industries. Shaw has an advanced degree in computer sciences. David E.html Top Private Equity Schools Top Private Equity Schools List of Top 25 Schools for Private Equity A common question for students hoping to enter the private equity industry is what is the best private equity school? While many students enter private equity through various business schools.http://privateequityblogger. which compiled the highest number of placements in the private equity industry by school. for example the successful hedge fund manager. and attending a top-tier business school can dramatically help one's chances of working in private equity. List of the Top 25 Private Equity Schools 1 Harvard University 2 University of Pennsylvania 3 Stanford University 4 University of Chicago 5 Northwestern University 6 New York University 7 University of Virginia 8 Dartmouth College 139 | P a g e . others by directly preparing students for buyout modeling and fund operations. For example. it is not required and many professionals working in the private equity industry have taken unique paths to private equity that may or may not include earning an MBA or studying finance even. the list of private equity schools was prepared by Private Equity Database. Private equity is a challenging environment and an educational background is valuable to entering the industry but it is open to anyone who has the desire to learn the skills necessary to succeed. The list of the top 25 private equity schools includes both graduate business schools and undergraduate schools that have proven most successful at private equity placement of its students. some schools increase your chances by reputation.
best private equity business schools.9 Columbia University 10 Yale University 11 Duke University 12 University of Michigan 13 Cornell University 14 Georgetown University 15 University of California. private equity programs. Berkeley 17 Massachusetts Institute of Technology 18 University of Texas. private equity business programs. top 10 private equity schools.com/2008/11/top-private-equity-schools.html Private Equity Portfolio Private Equity Portfolio 140 | P a g e . Chapel Hill 21 Indiana University 22 Emory University 23 University of Rochester 24 Carnegie Mellon University 25 Arizona State University Permanent Link: Private Equity Schools Tags: Private Equity education. Austin 19 University of Southern California 20 University of North Carolina. Los Angeles 16 University of California. list of the top 25 private equity schools. private equity school. private equity schools. private equity MBA Link to This Resource: Top Private Equity Schools http://privateequityblogger.
"Four Survival Tips for Struggling Private Equity Portfolio Firms" 1 Immediate Renewal Leadership: A challenging economy can be a blessing when you see and react to issues that were not revealed when the tide was high.How Private Equity Portfolio Firms Can Succeed The economic downturn and the financial collapse of this year have left many private equity firms struggling to produce returns from their portfolio companies. 4 Get Everyone Involved: In the middle market. consider ForteCEO's operating executives who have led business renewals in more than 30 industry sectors. A prolonged downturn. which certain industries are currently facing. Since you need this assistance right now. you need to take decisive action and bring in overqualified leadership to steer the ship through the storm. and it may be with your current leadership. vendors or other key constituents from your challenges. Private Equity Owned Companies. Private Firms. consider an interim CEO to work with the current team and help them succeed. He offers private equity portfolio firms and other private businesses the opportunity to work with ForteCEO's executives--all of which have at least 20 years experience leading successful businesses--to exploit profitable areas and overcome obstacles. Tips for Private Equity Portfolio Firms Link to This Resource: Private Equity Portfolio http://privateequityblogger. By Mark Rittmanic. CEOs.html 141 | P a g e . a leading senior interim executive firm for private businesses in the United States. Mr. clients. 3 Don't Assume We Have Seen the Worst: We are preparing clients in certain industries to survive 2009 with 30 to 40% lower annual revenues. product SKU's and service offerings usually results in a dramatically different view of what is necessary for survival.com/2008/11/private-equity-portfolio. Take advantage of times like these to galvanize your team around the goal of survival. Private Equity Portfolio Firms. 2 Demand Industry Expertise: Many PE firms have operational partners as a first line of defense for portfolio assistance. landlords. The executive management of these firms have an important role in the company's survival by providing clear leadership and sound strategy in unsettling times. This is never truer than when the firm is under fire. Private Firms. Make them part of the renewal effort. Private Businesses. is no time for on the job training in a new industry. Founder of ForteCEO Tags: Private Equity Portfolio. ForteCEO. Rittmanic offers his thoughts on how private equity portfolio firms can survive in a challenging economy here. most great companies are based on getting extraordinary accomplishments from ordinary people. operating expenses. But taking a focused. If your operating bench is light on the right industry experience. this seems impossible. If you have a struggling leader with a "deer in the headlights" reaction to the business downturn. At first blush. It just takes a leader who has done it before. especially leaders who are not able to adapt. Don't shield your people. which may include pay cuts and other sacrifices for all parties until you are out of the woods. zero-based approach with people. Mark Rittmanic is the founder of ForteCEO. and likely will not need this level of leadership long term.
one of the most successful private equity firms has posted a significant loss in the third quarter of 2008.‖ DealBook has more on Blackstone's losses: 142 | P a g e . The advisory arm for Blackstone gained substantially while Blackstone's hedge fund.7 million in positive revenue for the period. Blackstone's chairman and chief executive. global equity and credit markets have declined substantially and we have lowered the carrying value of our fund investments. Blackstone's real estate business posted $273. Blackstone's hedge fund operation also declined to $48 million in negative revenue. The typically profitable real estate arm suffered more as the value of its assets fell considerably. Finally. In a statement regarding the losses. As evidenced in the third quarter.7 million in negative revenue.The Blackstone Group Posts Losses The Blackstone Group Posts Loss The Blackstone Group Posts $502.3 million in negative revenue. private equity and real estate businesses all experienced negative revenue.5 Million Loss The Blackstone Group.5 million loss. The only relief came from Blackstone's advisory business which gained 90% from the same time last year at $160. The Blackstone Group's private equity business reported $68. Stephen Schwarzman said "We are operating in a challenging and volatile environment. Blackstone reported losses in nearly all of its businesses totaling at a $502.
the carried interest is regarded as 143 | P a g e . down about 4.. Stephen Schwarzman Private equity. Since it went public in June 2007. Blackstone Private Equity. Its stock price has plummeted 75 percent since the I.29 billion invested in liquid funds. While management fees are taxed as high as 35%.P.O. Blackstone Stephen Schwarzman. Units in the company closed on Wednesday at $8. the firm lost $365.(DealBook) Tags: The Blackstone Group. One of his proposals for increasing revenue to curb the deficit is the closing of tax loopholes that benefit big businesses and upper class Americans.com/2008/11/blackstone-group-posts-losses. Blackstone. Private Equity Blackstone Group Link to This Resource: The Blackstone Group Posts Losses http://privateequityblogger. The firm emphasized that it had a strong balance sheet. January 20th of next year. has become a barometer for the health of the industry. A large part of private equity earnings come from carried interest. he will inherit among other responsibilities a massive deficit that he would likely seek to reduce.html Barack Obama Capital Gains Tax Barack Obama Capital Gains Tax President Obama May Increase Capital Gains Tax The election of Barack Obama for President of the United States could spell bad news for the private equity industry as he will likely support increasing taxes on carried interest earned by private equity fund managers.60. with $1. On a generally accepted accounting principles basis. while having only $845 million in short-term borrowings.P.5 million for the quarter.O. Blackstone.8 percent. which excludes costs associated with the firm‘s I. When President-elect Barack Obama steps into office on Tuesday. Private equity losses. Throughout the primary and general election Obama harped on this idea and suggested he would support altering the current tax code for capital gains.Blackstone‘s quarterly loss was reported in what the firm calls economic net income after taxes.13 billion in available cash and $1. one of the world‘s largest buyout firms. in which a fund's manager claims a percentage of the total profits earned of the fund when an investment is sold.
Barack Obama Carried Interest.8 million partnerships that are literally the small office building on the corner of Main Street.com/2008/11/barack-obama-capital-gains-tax. Democratic majority in the House of Representatives and the new Democratic President entering office shortly. Even with the House majority being Democrats. the threat of President Bush vetoing the bill ensured that private equity managers would enjoy the same tax treatment. The opposition for such a change comes from the possibility that it would effect much more than private equity groups by boosting taxes on venture capital and real estate partnerships. tax code. Under the Bush administration. with a struggling economy. that estimate seems to have fallen since last year. the amount of revenue would likely be far below that. With investor interest in private equity slipping and fewer deals being executed. Instead of the average capital gains tax of 15% private equity fund managers could see their carried interest taxed up to 35%. However. without realizing that the basic tax structure is used by 2.capital gains in the U. The Bush administion will be replaced by an Obama administration that favors increasing taxes on carried interest earned by private equity managers. any legislation that would change the capital gains tax stood little chance of passing. As David Hirschmann. the CEO and President of the Center for Capital Markets Competitiveness explains: "This was viewed initially as a way to tax a few large private equity firms. President Obama and Private Equity.S.html Private Equity: Obama and McCain Private Equity: Obama and McCain 144 | P a g e . the likeliness of increasing taxes on carried interest is far greater. The opposition to the current tax treatment argues that managing a fund is a service and should be taxed in the same way as other service providers like say teachers or mechanics. Private Equity tax." (CNN) While proponents of increasing the taxes on carried interest originally projected revenues from the taxes to be $25.6 billion. Obama capital gains tax Link to This Resource: Barack Obama Capital Gains Tax http://privateequityblogger. Tags: Barack Obama Private Equity. who would likely support increasing the tax. Carried interest Obama.
Therefore. as the nation decides whether Republican John McCain or Democratic Barack Obama becomes President of the United States. What are the implications for private equity under President McCain and President Obama? Before the results come in. the Wall Street Journal did a piece comparing Barack Obama to Nermal (the softer. promises little change to the existing tax treatment and more importantly the treatment of capital-gains tax. on the other hand. The Wall Street Journal concluded a recent assessment of which presidential candidate has the bigger support from the financial sector and found McCain to have more allies funding him. In the primary season.President McCain or President Obama This is a very important day in America. McCain has also built support from venture capitalists based on his treatment of business taxes. Barack Obama received an endorsement from the Service Employees International Union which publicly opposes private equity (recently confronting the Carlyle Group's David Rubenstein). He has received a good size contribution from Henry Kravis of KKR private equity.788 just in 2007. as well as from high-profile CEOs at investment banking firms all of which hope to see their taxes stay the same if not decrease under McCain as president. In many ways the winner will likely change the course of this country. lovable feline opposite to the cartoon character Garfield). for better or worse. most private equity contributions to the McCain presidential campaign is in hopes of getting him elected to ensure things stay the way they are for private equity. It makes sense that private equity would want to invest in potentially the next president because Obama has pledged to change the treatment of the capital-gains tax. Mitt Romney is a more reasonable funnel for private equity donations as he is a founder of Bain Capital. The private equity industry opposes these changes and it's possible some see the best move is to support Barack Obama so that he may reconsider if elected. At the same time. A striking example is that Barack Obama's presidential campaign took in more contributions from private equity than any other candidate (except early-dropout Mitt Romney) in the race at $253. when Hillary Clinton was fighting off Barack Obama for president. I'd like to do a brief summary of the presidential candidates' positions on private equity and investing. specifically offering lower taxes than his Democratic competitor. but dropped out in February 2008. President John McCain. The comparison of Barack Obama and a kitten stems from Obama being able to attract seemingly opposing endorsements. This is extremely important for small businesses who have fears that President Obama would raise taxes 145 | P a g e .
President barack Obama. not personalities. free trade. Bob Brady. using borrowed money to gobble uphuge swaths of industries and some of the biggest names — Neiman Marcus.on their startup. and access to highly skilled workers – it is actually Senator John McCain who has advocated and voted for policies that will protect and restore the key building blocks of innovation and investment success. President john McCain. But this important election is about policies. The New York Times has a critical article that points toward private equity as a contributor to the United States' struggling economy: Private equity firms embarked on one of the biggest spending sprees in corporate history for nearly three years.html Buyouts and the Credit Crunch Buyouts and the Credit Crunch Buyouts Under Pressure in Credit Crunch As the economy falters.com/2008/11/private-equity-obama-and-mccain. And on the issues most important to venture capitalists – capital formation. By tomorrow. as returns are expected to decrease in the near future: 146 | P a g e . we will know if it is President Obama or President McCain that will inherit a shaky economy. A new article shows how private equity buyout firms are feeling the squeeze of the credit crunch. The piece presents a bleak outlook for those who are working for an acquired firm and those who invested in private equity too. job-creating investment. But now many of the loans and bonds sold to finance the deals are about to come due at the worst possible time. it appears that many companies acquired by private equity firms are now struggling under the amount of debt used for the buyouts. Private equity 2008 election. While earlier this week a report showed that salaries and bonuses were staying strong for private equity firms despite the financial crisis. Metro-Goldwyn-Mayer and Toys ―R‖ Us. Private Equity Barack Obama. filed for bankruptcy protection this year. economic growth. if not tonight. Tags: Barack Obama. Private Equity John McCain. a partner at the Carlyle Group. Linens ‘n Things. The new owners then saddled the companies with the billions of dollars of debt used to buy them. recently argued in a editorial titled "Why Venture Capitalists Should Support John McCain" that venture capitalists should vote for McCain concluding: Senator Obama certainly sounds and looks good. a big retailer owned by the private equity firm Apollo Management. several major private equity-backed companies have filed for bankruptcy revealing a grim insight into the recession's impact on private equity. Today will no doubt have an important effect on the future of this country and private equity as well. John McCain. Election results Link to This Resource: Private Equity: Obama and McCain http://privateequityblogger. taxation.
Turkey and Egypt. and many of those investors could face a cash squeeze. credit crunch. private equity. To read the full article click here. private equity is broadening to the Middle East and Northern Africa region (MENA) with offices opening in countries like Saudi Arabia.People who work for companies owned by private equity firms could lose their jobs as firms cut costs to meet their debt obligations. Saudi Arabia May Become Center For Private Equity in the Middle East 147 | P a g e . Tags: Private Equity Buyouts.html Private Equity Saudi Arabia Private Equity Saudi Arabia Saudi Arabia: Private Equity's Next Big Market Saudi Arabia and the greater Middle East region is increasingly building a market for private equity. Buyout firms. buyout firms.com/2008/11/buyouts-and-credit-crunch. as they are forced to hold onto their investments for years until the economy recovers. private equity and the credit crunch. which owns Harrah‘s and Linens ‘n Things. Buyouts. As a new report by Global Investment House reveals. private equity firms Link to This Resource: Buyouts and the Credit Crunch http://privateequityblogger. Pension funds and college endowments that invested their money into in these funds in recent years hoping for big returns are likely to suffer as well. leveraged buyouts. LBO. And private equity firms like Apollo Management. face deep markdowns on the value of their holdings.
com/2008/11/private-equity-saudi-arabia.4 billion in the region in the last 10 years--primarily thanks to two investments exceeding $500 million each.html Private Equity Salaries Increase Private Equity Salaries Increase Private Equity Salaries Increase in Financial Crisis 148 | P a g e .) Despite the many positive indicators for private equity in Saudi Arabia. This shows that there is reasonable evidence to suggest Saudi Arabia is an increasingly attractive area for private equity investment. And of course the high oil prices have continued to fund Saudi Arabia's economy and allows for a very large government budget for infrastructure improvements.1% compared to 1. the Saudi government has made several important efforts to attract foreign investment such as joining the World Trade Organization in 2005. unique business culture despite impressive pushes. Private Equity in Saudi Arabia. Furthermore. finacial services. This shows major potential for Saudia Arabia private equity investment to boom in the near future.) Saudia Arabia's economy is steadily expanding and the government reforming and privatizing many institutions such as transportation. retail goods and services. Saudi Arabia Private Equity.Egypt has been the preferred destination in the MENA region for private equity investment--which totalled $2. Saudi Arabia still has some barriers keeping foreign investors from completing private equity deals inside the country like unfamiliarity with cultural setting and regulations. Also. Private equity deal volume as a percentage of GDP is very low at estimated 0. private equity is distributed much more evenly in the region in the last decade.5% for the United Arab Emirates. Private Equity Saudi Arabia. Recently. The United Arab Emirates took in 27% of private equity investment. telecommunications. the country has worked to reduce its economic exposure to oil by diversifying business sectors and emphasizing building friendly business relations. (Saudi Arabia is rated by the World Bank 16th in the World and best in MENA in ease of doing business. and a current lack of talent (likely offset by %50 of the population in the below 20 years age bracket. and healthcare. However. there are some major obstacles too. the successful Saudi economy over the last few years especially--real GDP rising at a 5% compound annual growth rate from 2002-2007--will likely draw private investors. without these two large investments. Private Equity Investment in Saudi Arabia Link to This Resource: Private Equity Saudi Arabia http://privateequityblogger. Private Equity Investment in Saudi Arabia. Source: GIH Report and CPI Financial Tags: Saudi Arabia. Saudi Arabia 23% and followed by Jordan and Egypt combining for $800 million.
and the decline in most other financial sectors. But there was plenty of reason to anticipate that private equity firms would make reductions in salaries and employees: .000. compared to about $1. according to Glocap.. The most reasonable cause for the increase in private equity compensation during such a poor year for deals is the impressive capital fund raising of 2008. Blackstone also had negative $198.000.private equity dealflow fell roughly 75% to $143 billion in the first half of 2008.000. This is pretty startling considering the gloomy predictions for private equity lately. compared with net income of $774... Blackstone Group LP posted a net loss of $156. Bonuses for principals at these funds rose 6% to an average of $607." 149 | P a g e . Private equity is a different story. the estimated 6% rise in bonuses is quite impressive. Private equity firms are well-known for paying high salaries to employees as a way of retaining talented deal-makers and attracting skilled young professionals to the industry.5 million for the second quarter.000. I'm not even going to bring up the price of Blackstone's stock.1 billion in performance fees it earned for the first six months of 2007. private equity compensation has not lowered in any categories and the majority of private equity positions showed increases in compensation. the economic crisis has brought lower salaries or even lost jobs. also a 4% increase from last year. which is included in the $885. Dealscape reports further on the private equity compensation data: The total cash compensation (base salary and cash bonus) for senior associates at the largest buyout funds (those with $5 billion or more in assets) is now $435. Dealscape reveals "When combined with 2007.4 million a year earlier. Compared to this week's reported layoffs at Lehman Brothers and several major retail companies. a striking contrast to the struggling investment banking firms.. a 4% increase over their 2007 levels. especially those working in the financial sector. private equity funds continued to have the resources to maintain compensation levels and in many cases increase them. which set a record for capital inflows..At the principal level. the report reveals a 6% increase in bonuses awarded to Principles. Kohlberg Kravis Roberts & Co. posted a loss of $1.1 billion for the first half as difficult credit markets took their their toll on the values of the firm's holdings. In fact. According to the 2009 Private Equity Compensation report.For many Americans. large buyout funds pay an average total cash compensation of $885. Among megabuyouts.6 million in performance fees for the first six months of 2008 (meaning it reversed previously recognized performance fees).
Private Equity Statistics. Private Equity Trends. private equity income. Private Equity Data and Firms. While it does not represent every private equity firm.Source: Dealscape and the 2009 Private Equity Compensation report Tags: Private Equity Salary. private equity compensation report.. Private Equity Firms Forming Link to This Resource: Private Equity Firms Data http://privateequityblogger. private equity compensation. Then the recent spikes that preceded 2008's major decline to below 10 firms.com/2008/11/private-equity-salaries-increase. the graph is a telling history of private equity. Private equity salaries. because some firms choose not to disclose the formation date. private equity salaries report.html 150 | P a g e ..html Tags: Private Equity Data. E-mail readers. please use this URL to see the image: http://privateequityblogger. Private Equity Firms Data. I suppose this is an appropriately gloomy illustration of the downturn in private equity to be posted on Halloween.html Private Equity Firms Data Private Equity Firms Data Chart Shows Private Equity Firms Formation History Private Equity Database has created a chart of private equity firms formed since 1980. private equity salary increase Link to This Resource: Private Equity Salaries Increase http://privateequityblogger.com/2008/10/private-equity-firms-data. The chart shows the peak in private equity firms formed in 1998-1999 at about 60 firms and the subsequent drop (presumably following the tech bubble's burst).com/2008/10/private-equity-firms-data. Private Equity Firms By Year.
Pac-Man is utterly defenseless and must run away from the ghosts until he consumes an "energizer" which allows Pac-Man to turn around and chase his pursuers for a period of time.The Pac-Man Defense The Pac-Man Defense The Pac-Man Defense | What is the Pac-Man Defense? The Pac-Man defense is a strategy in mergers and acquisitions that is used by a company facing a hostile takeover. in which the player controls Pac-Man trying to consume various rewards while evading the ghosts in pursuit. Most people who grew up with video games remember the classic Pac-Man game.) Using the Pac-Man Defense 151 | P a g e . this does relate to private equity. (I promise. The basic idea of the Pac-Man defense is that the company being acquired attempts to purchase the would-be buyer. Understanding the Pac-Man defense is important when considering executing a buyout.
most often by purchasing a large amount of shares in the other company. Mergers and Acquisitions. the most cited example is the Bendix Corporation's attempted hostile takeover of the Martin Marietta Corporation. and essentially owned the company. However. The Pac-Man defense was supported by United Technologies and Bendix was placed in the difficult position of fending off the counter-takeover.com/2008/10/pac-man-defense. When the dust settled. Bendix. Making the Best of a Bad Situation The financial crisis could be very profitable for private equity funds. Dwight Bush hopes that his new private equity fund will thrive by identifying and purchasing profitable assets at low prices from the government and other funds. Bendix was acquired. or how he plans to raise capital from "cashstrapped" investors and more importantly how he hopes to give his Limited Partners more money than initial investment? Here are his basic answers to these questions: 152 | P a g e . instead. by the Allied Corporation.e. in the brief period between Bendix owning and controlling the company. At least this is the bet that some investors are making. acquirer) and strikes back with a hostile takeover of his own. Pac-Man Private Equity Link to This Resource: The Pac-Man Defense http://privateequityblogger. One such optimist is Dwight Bush.html Private Equity Funds in the Financial Crisis Private Equity in the Financial Crisis Starting a Private Equity Fund in the Financial Crisis While the current financial crisis has in some ways limited private equity.The Pac-Man defense follows the video game's concept because the once vulnerable company (i. Tags: The Pac-Man Defense. One might wonder why he chose this bad economic period to start a private equity fund. Martin Marietta's management sold off all non-essential assets to finance its own hostile takeover against Bendix.e. This tactic has been employed by companies that do not wish to be purchased and so try to scare off buyers. What is The Pac-Man Defense. the crisis could also yield huge returns to private equity firms that start funds for buying up profitable assets. Pac-Man) stops trying to avoid his enemy (i. How to use The Pac-Man Defense. he is also the subject of a recent Washington Post article. Bendix purchased a controlling stake in Martin Marietta. hoping to capitalize on the weak assets available by fixing them up and selling them for a profit. The takeover target uses whatever resources available (even taking from its war chest) to defeat the acquisition. an experienced corporate banker who is setting up a private equity fund. Mergers and Acquisitions strategies. Martin Marietta. but not by Martin Marietta. primarily by reducing a private equity firm's ability to leverage a buyout. An Example of the Pac-Man Defense in an Acquisition Although the Pac-Man defense has been employed on several occasions.
pension funds take in money and pension funds have an obligation to pay their retirees over time.hopefully at a profit. there were great fortunes made. "Over the long term. The firm has formed multiple private equity funds that raised more than $1 billion in private investment. Okay. Bush said hedge funds are selling off quality assets. So new capital is available in the market every month and the money has to be put to work." he said. Private Capital Link to This Resource: Private Equity Funds in the Financial Crisis http://privateequityblogger. you've got to remember that banks have to lend to make money and that this too shall pass.html Leonard Green and Partners Leonard Green & Partners Leonard Green & Partners | Private Equity Firm Leonard Green & Partners is a large private equity firm based in Los Angeles." What about the private equity buyout model based on leverage in light of the current credit crunch? "In the short term. Private Equity Fund manager. . Some $43 billion came out of the hedge fund market in September because investors are demanding their money. Additionally." What is his strategy for his private equity fund? Bush: He said the private-equity fund plans to do two things: manage assets that the federal government buys from banks and buy assets that the "Paulson Plan" auctions. sound strategy." he said. "Every month. Private Equity and the Credit Crunch.com/2008/10/private-equity-funds-in-financial. and that can work with those assets over time to help realize their true value" will make lots of money. he hopes to make money of hedge funds dishing out assets at fire-sale prices. private-equity firms will tend to work more with strategic partners. Private Equity Fund Management. California. Financial Crisis. Private Equity Funds." Bush said. at low prices so they can give cash to their impatient investors. those people who can identify good assets that are undervalued . Tags: Private Equity. Private Equity Fund. Leonard Green & Partners has carved a niche for itself by investing in large and mid-market retail companies like Petco. then fix them up and sell them -. "In this type of fragmented environment. Big Five and the Container Store. and the assets acquired will be less leveraged. from manufacturing companies to farmland to commodities. people like Joe Robert .Why choose a financial crisis to start a private equity fund? Bush: "What we know is that the last time we had a mortgage meltdown. . 153 | P a g e . My view is that the current situation should reach bottom some time in early to mid-2009. but where will the private equity fund get money to buy the assets? Bush: "Remember one thing. Dwight Bush. . Leonard Green & Partners was estimated to hold $9 billions in profits at the end of 2007. ." Dwight Bush presents a strong argument for why private equity can endure the financial crisis with what he sees as eternal investment capital (pension funds) and long-term lending from banks that necessarily lend in order to make money. and by 2010 we should have a more robust economy again.
tumultuous year. Announced on November 5. Whole Foods. The sponsors have thankfully made this a webinar and details for attending either in-person or online can be found here. a much-needed vote of confidence for a chain that is being battered by increased competition and a weak economy.The most recent and very high-profile investment is the purchase of a 17% stake in Whole Foods Market.com/2008/10/leonard-green-and-partners. particularly as they reflect ambiguous contracting that has often proven ineffective to address the now-evident potential for market reversals.m. His principal topic (The Failure of Private Equity).m. and with the Huntsman/Hexion merger still generating litigation activity. M&A lawyers are looking forward to the presentation next Thursday afternoon by Professor Steven M. If you're like me. . will invest $425 million in the company. Follow title link to full article Tags: Leonard Green and Partners Invests in Whole Foods. Strine. will join Professor Davidoff as commentator. Under the terms of the agreement. Eastern Time. Vice Chancellor Leo E. is expected to focus on highlights from Delaware court decisions and proceedings in the past. Additionally. Leonard Green & Partners' affiliate fund Green Equity Investors injected a large amount of capital into the struggling grocery chain. Green Equity Investors. Green Equity Investors. Jr. Davidoff (Click here for more information and to register). an affiliate of Los Angeles-based Leonard Green & Partners. The event is entitled "the Failure of Private Equity" and is free and open to the public. The news came as the company announced a huge drop in fourth-quarter earnings amid sputtering sales. on which he writes in a forthcoming article. and can't make the trip to Wilmington. Leonard Green and Partners Private equity Firm.4:30 p. The following is the overview of the conference and the speakers: With the Lyondell Chemical case on appeal. 2008.html Harvard Private Equity Conference Harvard Private Equity Conference Private Equity Seminar | Mergers and Acquisitions Harvard's Corporate Governance blog writes of an upcoming conference on private equity and mergers and acquisitions on Thursday. DE on a Thursday you can still attend it online. LA Private Equity Link to This Resource: Leonard Green and Partners http://privateequityblogger. Resource 1# Green Equity Investors Purchases 17% Share of Whole Foods A private equity firm is buying a 17 percent stake in Whole Foods Market. Leonard Green and Partners. 154 | P a g e . October 30 from 3:00 p.
Mayor Michael Bloomberg and staunch opposition by private equity firms and hedge funds. the majority of New York City Council members would support raising the tax on carried interest earned by local private equity firm managers from 15% to 35%.Writing as The Deal Professor. Harvard Corporate Governance. Private Equity Webinar. Davidoff is a commentator for the New York Times DealBook on the legal aspects of mergers. as it is rare that a local or state tax system would deviate from national tax code. As the President of Robert Willens LLC. According to the Working Families Party. recently said "I would say the chances are about as close to zero as could be possible. he is a professor at the University of Connecticut School of Law. however the complaint is not likely to be acted upon anytime soon--if ever. Private Equity Link to This Resource: Harvard Private Equity Conference http://privateequityblogger. a tax and accounting law firm. Private Equity Conference. Private Equity Event. 155 | P a g e . Working Families estimates raising the tax would net $225 million each year for New York City.html New York Private Equity Tax New York Private Equity Tax New York City Private Equity Tax on Carried Interest New York City Council members appear open to raising the tax on carried interest earned by local private equity managers by 20%.a The first obstacle is the fact that the federal tax code has not been changed to increase taxes on carried interest. A former corporate attorney at Shearman & Sterling. private equity and corporate governance.. Harvard Private Equity Seminar. The national debate over taxing carried interest is ongoing and so far nothing has been changed in the treatement of private equity and hedge fund manager's carried interest. His columns are available at The Deal Professor blog. This is a hotly debated national issue.com/2008/10/harvard-private-equity-conference. Potential Issues With Locally Taxing Private Equity In my personal opinion. They almost never deviate.and working class Americans." It would be highly irregular for New York City to do this. State and local taxes are geared to the federal code. a move that would leapfrog the national debate over taxing carried interest. To change New York City's tax toward carried interest would be surprising. Permanent Link: Harvard Private Equity Conference Tags: Harvard Private Equity. there are several potential obstacles to New York taxing local carried interest: federal tax code. The claim is that carried interest is an unfair loophole that causes an unbalance in tax system and hurts middle. Harvard Business School. as many view private equity and hedge fund managers earning 35% of the fund's profits to be unfair to investors and even to the public.
Although his term is coming to a close.html Private Equity Manufacturing Private Equity Manufacturing Private Equity Investment in the Manufacturing Industry Manufacturing companies often require private equity investment to stay competitive and expand their businesses. forcing an unpopular cut in local private equity and hedge funds profits would potentially cost the city revenue if the firms changed location to avoid the tax. Manufacturers need capital for many reasons such as to purchase new equipment. Source: Dealscape *Note: This article in no way endorses a particular position or represents financial advice. With all the resources and money available to the private equity and hedge fund industries. Additionally. Tags: New York Private Equity Tax. research and development and growth initiatives. Benefits of Private Equity Investment in Manufacturing Firms There are several benefits for manufacturing firms seeking out private equity: 156 | P a g e . is the current Mayor Michael Bloomberg. he is the incumbent candidate for Mayor next election. New York private equity firms. private equity and hedge funds carried interest Link to This Resource: New York Private Equity Tax http://privateequityblogger. Carried interest. The debate of taxing carried interest is ongoing and as political leadership shifts along with changes in the economy it's hard to predict which side will win. leading many manufacturing firms to look for private equity. but it's not likely he would go out of his way to hurt financial institutions either. so far. the City Council passed an unprecedented vote to overturn the term limits. (Last week. private equity firms and hedge funds have been able to resist national pushes to raise the tax on carried interest. allowing Bloomberg a third term.) Lastly. Private Equity New York. New York Private Equity. New York Carried interest tax. it is difficult to push such an unpopular tax on them.com/2008/10/new-york-private-equity-tax.The second obstacle. New York Private Equity Tax system. expand into new markets. The Mayor is known first as a very successful businessman and while it's unfair to say that he would favor business interest. The credit crunch has limited the ability of mid-market manufacturers to borrow capital.
Lean manufacturing principals were implemented throughout the organization. the company has been able to increase their revenue nearly 10%. Manufacturing and Private Equity. Long-Term Strategy: A big benefit of private equity. Private equity firms add a new perspective on the current market opportunities and suggest adjustments that will increase returns for the company and the private investors. Why? The partnership gave the management team the confidence and sense of empowerment it needed to move forward with strategic growth plans that had been on hold due to the economic outlook and the company's understandably cautious approach. the company was able to remain independent and the management team steers decision making and oversees day-to-day operations. Private equity firms can provide the resources and expertise to help firms expand into new markets. especially relevant for manufacturing firms. The influx of cash enabled Oliver Products to purchase new equipment and open an office in China.Adding a Strategic Planning Partner: Mid-market private equity firms often become involved with the manufacturer through a strategic planning partnership. manufacturer of food and medical packaging products. Private Equity Manufacturing Industry. After just one year.com/2008/10/private-equity-manufacturing. A public company's growth is measured quarterly while a private equity backed-company has more flexibility to make more profitable long-term decisions. the company relocated its operations in the Netherlands to a larger facility. For example. especially for manufacturing firms trying to stay competitive. A private equity firm may use its resources to help the manufacturing firm.html Investing Private Equity Capital Investing Private Equity Capital Private Equity Hesitates to Invest Capital 157 | P a g e . Private Equity Investment in the Manufacturing Industry. As is typical in PE investments such as this. partnered with Milwaukee-based private equity firm Mason Wells in May of 2007. A private equity firm's success is tied to the success of its investments so it is in their interest to improve the efficiency of the company through structural and management changes. with the balance of equity held by management. leading to improved production efficiency in the manufacturing processes. In addition. Public investors tend to have less patience for long-term results. Mid-market manufacturing Link to This Resource: Private Equity Manufacturing http://privateequityblogger.. Mason Wells obtained a majority ownership position. While the PE firm's leaders serve as advisors on the strategic direction of the business and serve as board members. is the focus on creating a long-term strategy. Increase Efficiency: Private equity firms may increase efficiency in manufacturing firms by assessing a firm's business model and making improvements. How Private Equity Firms Have Increased Earnings Oliver Products Co. Global Expansion: Globalization has become increasingly important over recent years. Industry Week article Tags: Private Equity Manufacturing. Private Equity. and R&D efforts have significantly ramped up to develop new products. by adding an experienced board of directors to advise the manufacturer.
com/2008/10/private-equity-capital_24. of lower credit quality than that issued in earlier cycles. and it was festooned with borrower-friendly innovations that could impede lenders‘ recovery. often those associated with private equity firms like Apollo or Cerberus. waiting for borrowers to get closer to default before they swoop in. estimates that hedge funds and structured investment vehicles hold $50 billion in loans they might be forced to sell.html Private Equity Energy Private Equity Energy Private Equity Investment in Energy | Biotechnology 158 | P a g e . Private Equity Decline Link to This Resource: Investing Private Equity Capital http://privateequityblogger. which asks why private equity firms have taken this passive position in Why the Reluctant Vultures? Specifically. even for those known for succeeding in an uneasy market.& P. the piece focuses on those private equity buyout funds that have thrived in depressed markets like today's: Other types of vultures. while having a lot of capital waiting to be invested. especially if investors think historical recovery rates don‘t reflect what they‘ll be able to claw back if the companies go bust. That‘s possible — the debt issued in the most recent boom was. There‘s the chance prices could fall more. Dealbook. Many of them are sitting on the sidelines. This private equity "pause" is considered by Dealbook. Private Equity Financial Market. Also. Private Equity Industry. Permanent Link: Private Equity Capital Tags: Private Equity Capital. Private Equity Sidelines. look to acquire controlling positions in companies through the bankruptcy process. Private Equity Boom. S." referring to the minimal private equity activity in the current financial crisis.Lately. while there is now only $40 billion or so of United States leveraged buyout-related loans stuck on bank balance sheets — a sixth of last year‘s peak — another overhang threatens. on average. private equity firms have often been described as "sitting on the sidelines. Dealbook then concludes that this financial crisis may be too risky.
did not return calls seeking comment. most notably the overcrowding of the industry forcing down profits. the former private equity arm of Morgan Stanley. suffered big losses on their purchase of Hawkeye Renewables. His private investment firm has lost millions on its 2005 investment in a company called Pacific Ethanol. include famous names. investing in Ethanol was an immensely profitable venture. The firm bought into an ethanol producer in a tough market that FT suggests were already showing warning signs of going bust. was knowing when to get out and those who didn't pull out quick enough lost a lot of money. Mr Gates's firm. there was some obvious exposure to risk. while other private equity firms have lost considerable money in their biotechnology investments. Microsoft founder. While there are many factors that forced these private equity firms to lose big. especially in Thomas H. such as Mr Gates. one of the biggest of the Boston private equity firms. For some private equity firms.A recent article in the Financial Times chronicles the accelerated boom and bust of ethanol in the United States. However. private equity firms love to be the first investing in the next big thing because that means incredible returns. Metalmark. the Financial Times reports more losers than winners: The losers in the ethanol investment frenzy. The lesson from this for private equity is to exercise extreme caution when buying in on a trend like an alternative energy source. which some have compared to the dotcom mania of the late 1990s. Of course. Many influential people. hailed ethanol as a promising step in loosening the United States' foreign oil dependency. anticipating big returns. reaped a 10-fold return on its 2003 purchase of Aventine when it went public in 2006. Thomas H. especially politicians including President Bush. The biggest winner was Morgan Stanley's former private equity arm Metalmark gained a 10-fold return on its 2003 purchase of Aventine after it went public in 2006. like in most forms of investing. the US bank. private equity investors sunk large amounts of capital into the biotechnology sector. As enthusiasm built. It bought the ethanol producer at the peak of the ethanol boom and were forced to stop its planned float after the bust. bought into the alternative energy source early and were smart or lucky enough to sell before the bust made considerable sums. as was the case with Metalmark. 159 | P a g e . Cascade Investments. Lee's case. This lesson is especially relevant as private equity energy investment grows and new alternative energy products are released. Those who bought into ethanol and sold out at the earliest stages made substantial sums. Those who. Lee Partners. The hard part. like Metalmark. Private equity investment in ethanol shows both the extreme positives and extreme the negatives of trying to anticipate a new investment. Other private equity firms and hedge funds that piled into the ethanol industry in the boom years of 2005 and 2006 have put in a mixed performance.
and backoffice positions. 160 | P a g e . Private Equity Jobs hopes to launch at least twenty more within the hedge fund and private equity industry over the next two years.000 of these pre-qualified professionals its database. Currently. private equity and hedge fund job hiring news and career management tools. The website was started in March 2008 by a veteran recruiter with over ten years experience in the alternative investment space.html Private Equity and Hedge Funds Jobs Private Equity and Hedge Funds Jobs Private Equity and Hedge Funds Jobs Resource Private Equity Jobs is a resource for individuals interested in entering the private equity and hedge fund industry. Private Equity Ethanol. Private Equity and Ethanol. Partners. Private Equity Jobs offers weekly newsletters and job bursts to disseminate relevant real-time industry information. Private Equity News Link to This Resource: Private Equity Energy http://privateequityblogger. Principals. Alernative Energy Private Equity. Private Equity Alternative Fuels. CFOs. COOs and Investment Associates. Private Equity Jobs more than 10. Since its inception Private Equity Jobs has hosted both front.Tags: Private Equity Energy. Quantitative Analysts. including job postings for Portfolio Managers. Private Equity Jobs uses a pre-qualifying method on candidates individually reviewing every candidate's background to ensure all community members possess the requisite educational background and work experience that is necessary for a job in the private equity or hedge fund industry. as well as those existing private equity and hedge fund professionals who want to manage their future and view possible job opportunities.com/2008/10/private-equity-energy. Private Equity Energy Investment. Although it has a single site now. Future of Private Equity Jobs Private Equity Jobs hopes to launch a monthy webinars and the site is currently composing a compensation survey.
Private Equity and Hedge Fund Jobs. but the site is working to expand its listings of non-U.S. Beyond adopting other asset classes. Privat Equity Jobs Database. The report outlines areas of concern as well as opportunities for private equity firms trying to survive the financial crisis.S. Private equity surviving through the current financial crisis Improving the Business Model By Diversifying: The economic downturn may well present opportunities to expand into other asset classes. private equity firms will likely take advantage of the failing investment banks by either buying large stakes (even a controlling interest) in banks or hiring talent from the investment banking industry. Hedge Funds. A new report shows the challenges facing private equity and how firms are adapting. and European leveraged buyouts into other asset classes and investment areas that could perform better in a poor capital market. Private Equity Jobs Resource. especially in the stable area of private equity. As banks are less and less willing to finance debt for big private equity buyouts. Finding a Private Equity Job Link to This Resource: Private Equity and Hedge Funds Jobs http://privateequityblogger. leveraged buyouts. private equity firms are faced with unsettling prospects. Presently.The majority of listings on Private Equity Jobs are based in the U.S. Private Equity Career. based job postings are only $99 for 30 days.S. Related Article: Free Private Equity Career Guide Tags: Private Equity Jobs. Taking on experienced staff from investment banking firms can help expand private equity geographically. Private equity has shown a trend of growing the business beyond U.html Private Equity in the Financial Crisis Private Equity in the Financial Crisis How Private Equity Will Survive the Financial Crisis Private equity has suffered amid the financial crisis. Non-U. the site offers a 30 day job posting for $199 instead of the previous fee of $350. Private Equity. enabling a profitable entry into emerging markets abroad. 161 | P a g e . In light of the volatile market. based positions. Private Equity Jobs now offers a new pricing structure for job postings.com/2008/10/private-equity-and-hedge-funds-jobs.
Understanding the risks and opportunities for each specific country is fundamental for a successful international private equity firm. While the push toward "going green" presents some exciting and potentially profitable business opportunities. so private equity firms hoping to survive long-term should be more conscious of the environmental impact. Report: Seeking Differentiation at a Time of Change Tags: Private Equity in the Financial Crisis. On the other hand. With new less-developed investment territories come new tax issues such as permanent establishment and beneficial ownership. BRIC present new investment opportunities and the potential private equity firms to profit from the considerable earnings growth prospect in these emerging nations. Additionally. Reduce Tax Risk: Global expansion is a way for private equity firms to access new investment opportunities and new investors.Greater Accountability: There is a long-standing critique of private equity that is has very low transparency and accountability to investors. private equity report. but it also presents more complicated tax risks and structural concerns. What will happen to Private Equity in the Financial Crisis?. it also impacts the way companies operate and adds more liability. mortgage meltdown. An emphasis on long-term structural adjustments and management improvments may help private equity outlast the current poor financial market by improving the current investments until there is greater capital available for new investments. financial crisis. Long-term Focus: Larger private equity buyout deals tend to have a long-term focus but the small and middle-market deals often have shorter holding periods. India and China have attracted private equity firms hoping to profit from these evolving economies. economic crisis. Private equity future. However. The traditional private equity view on heightened regulation and accountability has been negative because it would likely cut into profits.html Hedge Fund Blog | Investment Blog on Hedge Funds Hedge Fund Blog HedgeFundBlogger. Environmental responsibility does not appear to be a passing trend. Russia. Expanding to BRIC: The rapid growth in Brazil. private equity industry future Link to This Resource: Private Equity in the Financial Crisis http://privateequityblogger. some tax systems may treat firms more favorably and present exemptions and benefits as private equity expands globally. with the investment banking collapse putting a spotlight on corporate responsibility it is likely that private equity will necessarily adapt to increased accountability. in developed countries tax policy is evolving with new antiavoidance measures and increased audit activity over transfer pricing and jurisdictional substance. private equity and investment banks.com/2008/10/private-equity-in-financial-crisis.com | Overview 162 | P a g e . Not only toward investors but also the environment.
com is a 1. This site tracks hedge fund trends.This is a quick post to introduce my readers to http://HedgeFundBlogger. HedgeFundBlogger.000 article deep investment blog which focuses exclusively on hedge funds.com. Here are some links to the top 30 resources hosted on HedgeFundBlogger: Hedge Fund Resources: Hedge Fund Marketing Guide Hedge Fund Due Diligence Hedge Fund Strategy Guide Terms & Definitions 163 | P a g e . security purchases. news. networking events and offers dozens of educational resources.
com Investment Securities Tool Investment Book Hedge Fund Startup Tools Hedge Fund Newsletter Hedge Fund Information Top Hedge Fund Resources Archives of 1.Hedge Fund Prime Broker / Brokerage New York Hedge Fund Guide Connecticut Hedge Fund Guide Texas Hedge Fund Guide 164 | P a g e .000+ Articles Investment Book Reviews Hedge Fund Databases Hedge Fund Performance Hedge Fund Videos Hedge Funds FAQ Hedge Fund Services Third Party Marketing University Endowment Funds List Raising Capital Investment Marketing CTA Database Top 100 Hedge Funds Fund of Hedge Funds Prime Brokers .Geographical Hedge Fund Guides Hedge Fund Tracker Tool Hedge Fund Message Board.
hedge fund blogs. blogs on hedge funds.com/2008/10/hedge-fund-blog-investment-blog-on. alternative investment blog.html Philadelphia Private Equity Philadelphia Private Equity List of Private Equity Firms in Philadelphia | Pittsburgh 165 | P a g e . investment blog.California Hedge Fund Guide San Francisco Hedge Fund Guide Boston Hedge Fund Guide Chicago Hedge Fund Guide London Hedge Fund Guide Brazil Hedge Fund Guide Hedge Fund Career Resources: Hedge Fund Employment Guide Job Listings Hedge Fund Careers Chartered Hedge Fund Associate (CHA) Hedge Fund Jobs Chartered Financial Analyst CFA CFA vs. CAIA Chartered Alternative Investment Analyst (CAIA) Investment Certification Financial Certification Hedge Fund Training Courses Hedge Fund Internship Tags: hedge fund blog. alternative investment blogs. blog on hedge fund managers and investments Link to This Resource: Hedge Fund Blog | Investment Blog on Hedge Funds http://privateequityblogger.
The emphasis on venture capital and middle-market remains a focus for private equity in Philadelphia. private equity investment fell considerably following the internet bubble's burst around 2000-2002. Argosy Partners Birchmere Ventures Ben Franklin Technology Partners Southeastern PA Berwind Corporation Brown Brothers Harriman & Co. But like other technology-based regions. it is not terribly surprising given current market conditions. While this isn't great news. Context Capital Partners 166 | P a g e . Philadelphia private equity firms have continued the technology trend by investing a lot of capital into Bio-medical and pharmaceutical companies and website-based companies (notably an estimated $13 million to MyYearbook. With its close proximity to private equity centers like Boston and New York. In 2008.com).Philadelphia attracted a large amount of private equity during the technology boom of the late 1990's and beginning of this decade. List of Private Equity and Venture Capital Firms in Philadelphia Alliance Holdings Inc. Philadelphia seems poised to become a venture capital and private equity leader. private equity investment in Philadelphia and surrounding cities in Pennsylvania have dropped by about $5 million dollars from this time last year. Similar to articles on other private equity hubs. Pennsylvania region. According to the recently published "Money Tree" report. I am compiling a list of private equity firms located in the Philadelphia.
A. Industries Robinson Venture Partners LP Rosetta Capital Corporation Safeguard Scientifics Spring Capital SR-One Zon Capital Partners If you would like to have your firm listed please send me an e-mail at Theo@PEblogger. 167 | P a g e .Cornerstone Capital Holdings Edison Venture Fund Element Partners Eureka Growth Capital First Round Capital Gatshead Partners Graham Partners Huron Capital Partners Inverness Graham Investments Liberty Venture Partners LLR Partners Merion Partners Milestone Partners MVP Capital Partners New Spring Capital Pi Capital Group LLC PNC Equity Partners Quaker BioVentures R.com *Although this list is comprised of mostly private equity firms located in Philadelphia there are also firms located in other parts of Pennsylvania.F.
which explains the very competitive private equity job competition. a great work ethic and dedication to working in private equity it is possible. I am often contacted by young professionals who are eager to get a job with a private equity firm and want to know what it takes to get there. Landing a job in this industry is no simple feat but with the right credentials. Philadelphia Private Equity Firms List.com/2008/10/philadelphia-private-equity. So. 168 | P a g e . List of Philadelphia Private Equity Firms.com Private Equity Job Opportunities Private Equity Jobs Guide Private equity MBA: Here is an article on how private equity is attracting MBA graduates.html Private Equity Jobs Private Equity Jobs Private Equity Jobs | Career Resource | Guide A job in private equity can be both challenging and highly rewarding. If you would like to have a job listing posted on Alternative Investments Jobs. I will be updating this guide to make it very comprehensive and a great tool for finding a private equity job. gaining an advantage through articles. Resume writing: This article provides tips for writing a resume with a focus on private equity careers. Private Equity Firms List. Pittsburgh Private Equity Firms.Tags: Philadelphia Private Equity. I have compiled a free guide to help people interested in working in private equity with some knowledge that I can share as well as other resources that I have found helpful. Philadelphia Venture Capital Firms. Pennsylvania Venture Capital Link to This Resource: Philadelphia Private Equity http://privateequityblogger. advice from professionals and research is increasingly valuable in finding a private equity job. Philadelphia Venture Capital. please e-mail me at Theo@PEblogger. Pennsylvania Private Equity Firms.
html Private Equity Advertisement | Advertising with Private Equity Blogger Private Equity Advertisement Now Accepting Private Equity Advertisements Private Equity Blogger is happy to announce that we are now open to relevant. If you would like to learn more about this site or if you would like to set up an advertisement on this private equity blog. These options include--but are not limited to--private equity advertising profiles and articles.(120 x 30 banner ad on all pages) 169 | P a g e . this is a overview of the qualifications and duties of a partner at a private equity firm.Private equity associate: A private equity associate is the typical entry-level position for MBA graduates and this shows what that position entails. private equity careers. Venture Capital Associate: This article emphasizes the associate position at a venture capital firm. This blog has grown to host hundreds of articles with over a thousand readers visiting the website each day and a quickly expanding network of private equity professionals. Private Equity Job Database: This is a collection of job database websites. private equity. private equity resume.com Examples of Private Equity Advertising Options Press Release Publishing Site Sponsorship . we ask that all advertising be related to private equity. getting a job in private equity Link to This Resource: Private Equity Jobs http://privateequityblogger. private equity job.com/2008/07/private-equity-jobs. private equity career. Tags: Private equity jobs. Private equity partner: The private equity partner is a sought-after position in private equity firms. Private Equity Positions: A general overview of the different positions at a private equity firm. However. targeted advertising options for this Private Equity website. private equity jobs guide. guide to private equity jobs. please e-mail Theo at Theo@peblogger.
Private Equity Advertisers. with the percentage of leverage sometimes being as high as 90% but typically in the 60-70% range. Private Equity Sponsors. Private Equity Advertising Link to This Resource: Private Equity Advertisement | Advertising with Private Equity Blogger http://privateequityblogger. the negative is the risk involved in such a deal. Private Equity Ad. the benefit is that private equity groups can acquire majority shares without first having the necessary capital. Many of the major private equity deals were financed primarily through debt. Principally. Private Equity Advertise.com Mobile #: 503. Private Equity Sponsorship.Sponsored Niche Article Publishing (Search Engine Optimized) Theo O'Brien Theo@peblogger. financing a deal using a large 170 | P a g e .8129 Tags: Private Equity Advertisement. How Leveraged Buyouts Work Leveraged finance in private equity has its positives and negatives.html Leveraged Buyouts Leveraged Buyouts Leveraged Finance for Private Equity Buyouts | LBOs Leveraged finance has been a key resource for private equity as many deals use leverage to purchase companies that would otherwise be impossible to acquire. Leveraged buyouts have been very popular for most of this decade until the global credit crunch which has largely restricted the amount of leverage offered for LBOs.804.com/2008/10/private-equity-advertisement.
there has been a noticeable resurgence in the popularity of leveraged buyouts. Leveraged Buyouts in a Bad Market The mortgage meltdown has made leveraged buyouts very difficult as they rely on sizable loans which the investment banks are not as 171 | P a g e . The methods by which the private equity backer will improve a company are direct oversight of management by the private investors. and they use that freedom to sometimes actively manage the company. Options for repayment include: dividend recapitalization. using pay-for-performance incentives for managers and addressing structural problems that eat away at profits. Often the private equity buyout uses the assets of the company it is acquiring as collateral for obtaining the loan. A firm acquired in a leveraged buyout will put that money toward debt repayment. Often managers of public companies that gather large operating profits but are unable to find good investment opportunities will be motivated to dump the money into low-return projects instead of returning the profits to investors. and there are different ways in which the LBO firm repays this debt. or through an initial public offering (taking the company public through a stock offering). but these types of deals are still made and often times a successful leveraged buyout provides impressive returns to investors. firms bought through an LBO tend to focus on the long-term because there is little pressure to provide short-term profits.amount of debt has an inherent risk that the deal will not be successful and the buyer is faced with having to pay off the loan. global leveraged buyout fundraising increased from less than $100 billion in 2004 to more than $200 billion in 2007. leveraged buyouts (LBOs) have attracted a lot of criticism in the investment community. Another benefit for a leveraged buyout of a public company is the reduction in inefficient use of free cash flows. In this decade. For this reason. private equity firms that acquire a controlling interest in a company are often able to improve performance by providing a heightened level of management oversight and improved corporate governance. Beyond the aspect of returns to investors. Private equity investors enjoy greater freedom from SEC regulation than investors in public companies. Below is a graph from a report on leveraged buyouts by the Committee on the Global Financial System that shows how the typical leveraged buyout is structured (it's a little fuzzy but hopefully not too hard to read. Advantages of Leveraged Buyouts Leveraged buyouts have provided high returns to investors who are open to the element of risk that is present in financing deals through leverage.) The leveraged buyout firm usually repays the deal sponsors in three to seven years depending on the arrangement. Lastly. selling the acquired firm to other private equity firms or alternative buyers. Many view this as a benefit of leveraged buyouts because it allows for structural changes and long-term profit producing changes.
―covenant light‖ debt and arbitraging higher exit multiples) to generate returns are gone. the premium is on growth as the way to generate acceptable private equity returns in the future. Bloomberg reports "Announced transactions by leveraged buyout firms have dropped more than 70 percent so far in 2008 from the same period a year earlier. While leaders of top private equity like Steve Schwarzman and David Rubenstein have been optimistic this week over the return of leveraged buyouts. I found a great insight into what the top industry leaders are thinking through Jack Perkowski's blog Managing the Dragon. Jack Perkowski reveals some points made at the event that found a general consensus among the private equity leaders speaking. he responded by saying: ―I don‘t know. The financial crisis has made it increasingly difficult to make predictions of the future of private equity. Minority Interests and Buffet: Traditionally. the moderator remarked that when Warren Buffet was asked to explain his strategy for determining when and under what circumstances to sell a company. with so much chaos and fluctuation in the market there have been conflicting guesses as to private equity's future. While cost cutting can improve profitability. Perkowski is a highly successful businessman in China and author of Managing the Dragon and he recently spoke at the SuperReturns conference along with big private equity names like David Rubenstein and Steve Schwarzman. Private Equity leveraged buyout. Following on this point.com/2008/10/leveraged-buyouts. and the ones that are still standing have opportunities to buy existing debt in good companies at substantial discounts to their face values. I‘ve never sold one. approximately 90 percent of the attendees thought that it would take three years or more for financial markets to recover to their 2007 highs. in particular. leveraged finance. there are fewer lenders today than there were yesterday. I believe that these points provide some clues to the future of private equity from the best in the business: Long Recovery: No one thought that the recovery from the current financial crisis would be quick. the head of a major global PE firm expressed the view that minority interests and ―buy and hold‖ strategies might become more prevalent. but especially in regards to private equity. With the consolidation of the banking industry globally. PE firms have taken control positions in companies and have generally shunned minority investments. Most felt that the United States and Europe. Leveraged buyout definition.willing to offer now. LBOs. In fact. I have been anxiously following the recent financial developments. Traditional PE Business Models Won‘t Work: The days of using financial engineering (high leverage. specifically citing Warren Buffet‘s recent strategic investments in General Electric and Goldman Sachs as examples of what the future might hold. 38 percent thought it would take more than five years. companies cannot cost-cut their way to prosperity. LBO. What is an LBO?." Private equity firms hope that the injection of capital back into the banking system by the federal government will help solve some of the illiquidity in the market and revamp leveraged buyouts. benefits of leveraged buyouts.‖ 172 | P a g e . The banks tightening the purse-strings has forced buyout firms to either scale back the size of their investments or seek other sources of capital. Leveraged buyouts news Link to This Resource: Leveraged Buyouts http://privateequityblogger. were in for long and nasty recessions. what is a leveraged buyout. Of these. Therefore. Mr.html Private Equity Future Private Equity Future Clues of Private Equity's Future from Jack Perkowski Like most people. Today. In this turbulent financial world with debt financing scarce. leveraged buyout. Tags: Leveraged buyouts.
The Future of Private Equity. Highest Future Returns: Approximately 60 percent of the participants thought that the best returns over the next five years would come from the Asia and India region. most felt that it would merely slow the growth rates in China and India. A recent example of media buyouts is the possible bid for Virgin Media by private equity firms the Blackstone Group. Canada. Internet and technology-based media is not the only form of media attracting private equity. Private Equity Industry. lumping the countries of China and Chad into one category is not terribly meaningful. the current crisis might actually be a blessing in disguise for China by providing an opportunity to cool down the overheating of the economy experienced in 2007. In this context.) The incredible rise of the internet and mobile media has transformed the media industry and private equity firms are quickly recognizing the importance of the new media.com/2008/10/private-equity-future. Western Europe. although a year or two dated. leaving many newspapers open to private equity acquisitions. -Managing the Dragon Tags: Private Equity Future. 173 | P a g e .5 billion. A head of one of the major global firms thought that the term ―emerging markets‖ had outlived its usefulness because it was now so broad. Estimates of the bid's value range from $6 billion to $7. jack perkowski. that considers private equity investment in media. Antoine Van Agtmael http://managingthedragon. most notably during the dot-com bubble.php/2008/09/28/2008-world-business-forum/ in the early 1980s.html Private Equity Media Private Equity Media Private Equity Investing in Media Investing in the media can be both very profitable (as evident in the rise of internet media companies) and very risky (as is the case with private equity bids for major print-newspapers. KKR and Providence Equity. Venture capital funds invested significant capital into emerging technology and media firms.Emerging Markets versus Developed Markets: As readers of MTD know. the term ―developed markets‖ should be changed to ―submerging markets. Private Equity and the Financial Crisis. Here is a great article. that remark characterized the views of the conference. For example. Japan and Australia.com/index. Cinven. Places to Avoid Investing: Europe and commercial real estate. While the current credit crisis would lead to recessions in many countries. there have also been numerous bids and executed buyout deals of major print newspapers. In the words of this individual. The evolution of internet and cable news has led to a general decline in print media.‖ More than anything. anywhere. Private Equity Outlook Link to This Resource: Private Equity Future http://privateequityblogger. It now refers to about 200 countries—essentially all of the countries in the world outside the United States. the term ―emerging markets‖ was coined by my friend. The collapse of many of those venture capitalbacked media and technology-based companies when the bubble burst reveals the risk to these private equity investors. Private Equity Future Outlook.
Despite such turnaround efforts by the traditional newspapers. Media Buyouts. Media Mergers. Mergers and Acquisitions of the Media. the New York Times is adopting a format that is more techology-based." to laughter from the crowd. Media Takeovers. The major driving force behind private equity firms purchasing print-newspapers seems to be the potential for developing and implementing a more current news model that heavily incorporates video and internet resources. Lee Partners was asked about his firm's recently removed bid for the Knight Ridder newspaper chain. even adding several popular blogs. For example.On October 13th 2008. Private Equity Media Investment. Private Equity and the Media. the new media sources have appear to have the upper-hand in attracting private equity.com/2008/10/private-equity-media. Lee and Knight Ridder Permanent Link: Private Equity Media Tags: Private Equity Media.html Private Equity in India Private Equity in India Value of Private Equity Deals in India Drops 174 | P a g e . Media Acquisitions. Scott Sperling co-president of Boston private equity firm Thomas H. Media Buyout. Sperling explained that newspapers were just too expensive and said of the major decline in print newspapers' revenue "I would have predicted a lesser decline than what we‘ve seen… We were probably too kind in our assessment of the industry three years ago. while still maintaining its journalistic reputation.‖ His most telling remark was his reply when asked if he reads the Wall Street Journal's hard copy. Read full story on Thomas H. Private Equity Link to This Resource: Private Equity Media http://privateequityblogger. he admitted "Sometimes.
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with JPMorgan‘s $250 million investment in coffee shop chain Cafe Coffee Day.India private equity has been developing impressively over recent years but September proved to be an indicator that even India is not immune to the struggling global market.2 billion at the same period last year.‖ Natarajan said. Private Equity and India.com/2008/10/private-equity-in-india. Private Equity India. topping the chart. Private Equity Investment In India. The following issues are especially relevant to private equity groups in acquisitions. he said. Private Equity Blogger articles related to India Private Equity: India Private Equity Boom Overview List of India Private Equity Firms Tags: Private equity in India. Problems and Solutions for Company Acquisitions and Mergers 176 | P a g e . Chief Executive Arun Natarajan said.html Acquisitions and Mergers Acquisitions and Mergers Strategies for Successful Acquisitions and Mergers Acquisitions and mergers can bring big profits to companies but all-too often this is not the case because acquirers fail to notice some key problems that could be avoided. Total investments in the first nine months of 2008 stood at 330 deals worth $9. I recently read a relevant article on some common pitfalls for mergers and acquisitions that lead to big losses and big wastes for both parties involved. Venture Intelligence reveals that the value of private equity deals in India fell by 28% in the period of July to September compared to last year at this time. Today's post focuses on some of these problems and simple resolutions that can lead to successful mergers and acquisitions. Private equity report India. there were nine deals in the year-earlier period of over $100 million.5 billion invested across 296 deals in the same period of last year. India Private Equity Investment Link to This Resource: Private Equity in India http://privateequityblogger. ―The pre-IPO market has dried up. India's Private Equity. the value fell to $3 billion compared to $4. he said. While the number of deals completed stayed almost exactly the same as last year's number. Venture Intelligence said.7 billion. There were six deals of more than $100 million each. with the top being a $700 million transaction. Pre-IPO placements of shares and buyouts together comprised about 8 percent of total private equity investments in India in 2007. Reuters reports further on the fall in India's private equity deals: A stock market slump also dried up deals ahead of initial public offers. In comparison. against $9.
Mergers and Acquisitions of companies. Different firms have different work environments and cultures that you should be sensitive to in a takeover.com/2008/10/acquisitions-and-mergers. Source: Bruce R. Mergers and Acquisitions Information. think of it as re-investing in your company because it's really adding value to a company that you are very much invested in. which could slow down the high-growth company and have a negative impact on business and profits. and sometimes because the products and services of the companies are too different. Merger and Acquisitions. When a company strays outside of its territory it can sometimes lead to poor performance. be realistic of the weaknesses and difficulties in taking on the other company. These tips will help you toward an acquisition that benefits both parties involved and ultimately creates a better business. Conducting Strict Due Diligence: Due diligence is a crucial aspect of Mergers and acquisitions. Betting the House: The implicit hope in a merger or acquisition is that it will benefit your company. Corporate Mergers and Acquisitions.html Middle East Private Equity Conference Middle East Private Equity Conference 177 | P a g e . when considering a merger or acquisition.. but many deals end up hurting the acquirer. Evans is the Managing Partner at Summit Partners' Boston office. So adequately allocating resources for every stage of the deal is connected to. So. Private Equity Mergers and Acquisitions Link to This Resource: Acquisitions and Mergers http://privateequityblogger. An example could be a high-growth rate company taking on a steady but slow-growth rate company. Taking into consideration the factors that make these professionals productive could save you some two week's notices and hopefully improve your company as a whole. The idea is to be careful that conducting a merger or acquisition won't end up negatively impacting your firm's success. You Gotta Give a Little. rather than separate from your business--from due diligence to structuring the deal to incorporating the firm into your company. Don't think of it as sacrificing your resources.Poor Match: There have been many mergers and acquisitions that have failed because the companies simply don't match. either operationally 0r strategically. to the point that even a moderate failure can end up really hurting your firm. Another problem for your company could be simply betting too much on the success of the merger or acquisition. and if performed rigorously it saves a lot of time and trouble by catching potential issues and problems early. Conduct this process to the greatest degree possible but know that there are some problems that come up unexpectedly regardless.. His article offers key points of success and failure in Mergers and Acquisitions. Permanent Link: Mergers and Acquisitions Tags: Mergers and Acquisitions.Or a Lot: An acquisition is typically a major deal that requires the acquirer to give a large amount of resources in order for the acquisition to be beneficial. Give the People What They Want: A common problem in mergers and acquisitions is that the acquirer brings on the other company's staff but assumes that they will work as productive and contently in your completely different work environment. The typical case of this is a leveraged buyout that uses too much debt so that anything but a highly profitable success ends up costing the buyer more than it makes from the merger or acquisition. Acquisitions and Mergers. Both acquisitions and mergers are consuming and require a lot of investment from a company for it to be successful.
Dubai will host some of the biggest names in private equity for the SuperReturn Middle East event. Gulf Capital. Oct. Oct. Mr. Lee Partners located in the U. 12 until Wednesday. here is a video of the World Economic Forum in the Middle East 2007. David Rubenstein of the Carlyle Group and Steve Schwarzman." The conference is sponsored by Investcorp. and Middle East private equity firm Ithmar Capital and Thomas H. Middle East Private Equity Event Link to This Resource: Middle East Private Equity Conference http://privateequityblogger.Dubai Private Equity Event Hosts Prominent Speakers The Intercontinental Hotel in Festival City.html Private Placement Memorandum 178 | P a g e . For more information click here. Its success and standing in Europe is now being replicated here in the Middle East at a time of increasing excitement and opportunity for the local private equity industry.com/2008/10/middle-east-private-equity-conference. The conference takes place Sunday.S. Middle East Private Equity Conference. Steve Schwarzman. David Rubenstein. Long said of the conference: "We are delighted to be a principal partner of such a prestigious event. 15. Permanent Link: Middle East Private Equity Tags: Middle East Private Equity. it should be a great opportunity to learn more of the future of Middle East private equity. HGB Holdings. If you'd like to know more about the trends and development in the Middle East. this conference will be put online. SuperReturn is the definitive private equity forum. the co-founder and CEO of Blackstone. again David Rubenstein is a distinguished speaker here. The prominent private equity speakers include the president and CEO of Investcorp. Middle East Private Equity Video. Hopefully.
Investment Professionals and Committee: This section presents the investment professionals involved in the new fund and explains their role. process. This article will cover what is most often included in a private placement memorandum. This is also an opportunity for the General Partner to present a thorough explanation investment strategy. How the firm's advantages and resources will succeed in the specified market. the Securities and Exchange Commission regulates the document. This includes summary terms and conditions proposed by the firm that a limited partner may negotiate if the LP decides to invest. the investment strategies used.Private Placement Memorandum Overview of a Private Placement Memorandum A private equity firm offers a private placement memorandum to potential investors. In public capital investment offerings. Here are some general sections of the private placement memorandum: Executive Summary: Some information usually included here would be the size of the fund. Principal investors' records are often included here with current board positions held in portfolio companies of the firm's past funds. and limited partners rely on the PPM to make their decision based on the information presented in it. An especially important detail here is the history and experience of the investment professionals. but private equity firms may choose to exclude any of these sections or add one that is not present. deal sourcing and exit strategy. and the opportunities and challenges in the current market. expected close date. and the management team's experience in past funds. stage and relevant factors in its market. The document explains an investment opportunity to potential limited partners. but a private placement memorandum is not regulated and therefore the material and specifics provided to the limited partners may vary by firm. This section is a detailed overview of the fund's investment strategy discussing the geographical focus of the fund. Private equity firms usually include in the private placement memorandum a wide range of information that a limited partner would like to know when considering the investment. how it has succeeded and what strategies were used. Firm and Fund Investment Strategies: This is more or less self-explanatory but what you want to present is the firm's past performance and history. This is important information for the potential Limited Partners to know as it gives them an idea of the firm's degree of involvement in portfolio companies and the 179 | P a g e . Additionally this section includes a brief description of the General Partner. The private placement memorandum is a document for private equity firms hoping to attract investors. and the firm hopes they will be interested enough to invest capital in the investment.
com/2008/10/private-placement-memorandum. possibly a parent company.S. General Partners and Limited Partners Terms and Agreements: This is where the firm gives its initial proposal of terms and agreements between the General Partner and the Limited Partners. This gives Limited Partners an idea of the valuation of their investment and a way for keeping track of their capital commitment. The management concerns are usually relationships to other entities. Private Placement Memoranda.individual partner's ability to manage a new fund. Accounting and Reporting: Included in this section is an explanation of the allocation of returns and losses and accounting for stock options. Fund-related Investment Risks: This section typically covers three areas of investment risk: business. Again. Private Placement Memorandum. principal's co-investment activities or investments in public equities. based or non-U. Private Placement Memorandum for Private Equity Firms. Most importantly. Generally. This shows the details of the Advisory Board's members. distribution of the capital call schedules and the fund's cooperative investment policy. as well as valuation methodology and important factors when considering new investments. The fundrelated risks may include cross-fund investments. Business concerns would address concerns over the investment's industry and risks inherent to the industry and possible uncertainty in the business environment. Legal and Tax Concerns: Tax treatment varies by whether the investor is U. management and fund risk. scheduled meetings. Creating a Private Placement Memorandum. Private Placement Memo Link to This Resource: Private Placement Memorandum http://privateequityblogger. as it is not regulated by the SEC. This table usually includes past fund sizes and IRR performances of the funds (typically stated in terms of gross returns rather than individual LP's net returns over fees). Second in this section. and this section will briefly address different tax treatments and how it effects the Limited Partners. Overview of Private Placement Memorandum.S. based. the management fee. Source: Tuck Center for Private Equity and Venture Capital Permanent Link: Private Placement Memorandum Tags: Private Equity Private Placement Memorandum. This section gives a schedule for audited and non-audited financial statements that are delivered by the General Partner. Investment Performance Record: This section varies by firm because of different sizes and especially the difference between how long a firm has been established. firms often provide information on the Advisory Board or Investment Committee. firms use a table format to present the fund's investment track record. General Partner's commitment the fund. In the future I will provide an article on the important factors that Limited Partners consider in a private placement memorandum. known as "carry". This section varies by different firms but often larger Limited Partners will hold seats on the Advisory Board which is of particular importance in for prospective LP's. this is a general overview of the typical sections of a private placement memorandum which may be subject to change by private equity firm.html Private Equity Real Estate Fund of Funds Private Equity Real Estate Fund of Funds Private Equity Real Estate Fund of Funds 180 | P a g e . Of interest to the investors is the percentage of profits that the General Partner takes.
3% and 12. If you'd like to learn more about private equity real estate fund of funds. Private equity real estate fund of funds are relatively new to private equity. mostly through a value-added approach that improves the worth of acquired real estate. Private equity real estate will likely see changes following the mortgage meltdown. The NCREIF Property Index reveals current returns averaging 8% since 1978. Here is a list of the largest private equity real estate firms: The Blackstone Group Morgan Stanley Real Estate Tishman Speyer Goldman Sachs Real Estate Principal Investment Area Colony Capital Lehman Brothers Real Estate The Carlyle Group ProLogis Beacon Capital Partners LaSalle Investment Management MGPA AEW Rockpoint Group Apollo Real Estate Advisors CB Richard Ellis Investors RREEF Alternative Investments Grove International Partners 181 | P a g e . here is the 2008 Private Equity Real Estate Fund of Funds available for purchase. These private equity real estate funds use various strategies to create returns from large real estate property investments. but it is an expanding sector of the private equity industry.7%. followed by Europe with 43% and only 7% in Asia and other regions. The majority of private equity fund of funds managers are located in the United States at 50%. As of the year end of 2006. really becoming well-known in private equity early in the 21st century. Real estate fund of funds often attract investors because they provide an element of diversification to a portfolio and investors with smaller capital to commit are able to invest in a fund of funds if they are not able to invest in a large hedge fund of private equity fund. historical 5-year and 10-year compounded annualized returns of private equity real estate in the United States have been 13.Private equity real estate is an emerging area of private equity that has developed successfully this decade especially.
the report suggests that most of that capital came from private equity's peak during the first quarter of 2008. Since then capital has been very difficult to obtain for private equity funds. according to a new report released by Preqin.html Private Equity Capital Private Equity Capital New Report Shows Drop in Private Equity Capital Private equity is feeling the effects of the financial turmoil. Private equity funds have raised a little more than $400 billion this year.com/2008/10/private-equity-real-estate-fund-of. In the third quarter. The report shows a somewhat unsettling decline in private equity raised. investment in private equity real estate.Shorenstein Properties The JBG Companies Citigroup Property Investors (CPI) Capital Partners JER Partners Walton Street Capital Heitman Aetos Capital KK daVinci Lubert-Adler Starwood Capital Fortress Investment Group DLJ Real Estate Capital Partners RLJ Development List via PERE Permanent Link: Private Equity Real Estate Fund of Funds Tags: Private equity real estate fund of funds. This is 182 | P a g e . private equity real estate. real estate investment Link to This Resource: Private Equity Real Estate Fund of Funds http://privateequityblogger. the lowest since Q1 of 2005. as investors are more reluctant to invest in sometimes risky private equity funds. only $82. The financial crisis has made it increasingly difficult for private equity firms to raise capital.3 billion was raised by 117 funds. real estate private equity.
private equity and the financial market Link to This Resource: Private Equity Capital http://privateequityblogger. private equity reports.S.com/2008/10/private-equity-capital. the amount of capital raised by buyout funds dropped significantly from earlier quarters." Although buyout funds were the most popular type of private equity. I look forward to speaking with you. other regions showed signs of future competition as European private equity funds slipped especially. however the experience gained can be beneficial for eventually entering the private equity industry. less-proven funds.especially true for small and middle market funds that have limited resources for finding investors. While funds focused in the U. According to the report. you are guaranteed to have a better understanding of the private equity industry and stay current on trends and norms that will help you as a professional in the industry as you apply for a private equity job.html Private Equity Internship Private Equity Internship Accepting Applicants for Private Equity Internship Searching for a private equity internship? If you are interested in learning more about private equity and would like to apply for an unpaid intern position. "This represents an especially inactive quarter for European fundraising. Let me know what type of internship you would like (time commitment and type of work) and I will try to find a position aligned with your preferences. private equity. with funds focusing on Asia and the rest of world exceeding the total capital raised for Europe for the first time in the history of the industry. Also. making it difficult for new private equity funds to emerge. If you put in the effort and the time. This internship is not working directly in a private equity firm. compared to the largest private equity funds that rely on vast resources and previous Limited Partners to maintain a steady flow of capital. private equity decline. Limited Partners are looking almost exclusively to low-risk funds. and Europe raised the most capital in the third quarter. Secondary source: CFO Permanent Link: Private Equity Capital Tags: Private equity drop. send me your resume and what area of private equity you are most interested in. the big private equity funds have an established reputation that is more appealing to wary investors than smaller. Permanent Link: Private Equity Internship 183 | P a g e . private equity report.
4 billion in assets under management as of June 2008.html Stephen Schwarzman Stephen Schwarzman Video with Blackstone's Stephen Schwarzman Steve Schwarzman is the co-founder of the very successful private equity firm the Blackstone Group.com/2008/10/private-equity-internship. making it onto the Time 100 list last year. He shares inspirational personal anecdotes. private equity unpaid internship Link to This Resource: Private Equity Internship http://privateequityblogger.com/videosearch?q=steve+schwarzman&emb=0&aq=0&oq= 184 | P a g e . Schwarzman is respected as a savvy businessman and a strong manager.com/watch?v=ktdzSvP0gqQ&eurl=http://video.Tags: Private equity internship. Schwarzman. insight into the source of his success and offers some general advice for making it in the business world. and since then the Blackstone Group has evolved into one of the biggest private equity firms holding $119. private equity internships.youtube. internship opportunity private equity. he founded the Blackstone Group with Peter G.google. private equity job. In 1985. private equity career.000 in seed capital and a shared secretary. This video presents a rare opportunity for students at the Harvard Kennedy Business School to hold an open round table discussion with Mr. Peterson with only $400. Permanent Link: Stephen Schwarzman E-Mail Subscribers can view the video through this link: http://www.
steve+schwar Tags: The Blackstone Group. Blackstone Group Private Equity. Blackstone Group. Steve Schwarzman. Private Equity Stephen Schwarzman Link to This Resource: Stephen Schwarzman http://privateequityblogger.com/2008/10/stephen-schwarzman.html Boston Private Equity Boston Private Equity List of Boston Private Equity Firms 185 | P a g e . Stephen Schwarzman.
Boston is a center for private equity in the U.. Bain Capital.S. Through big local buyouts like that of Toy's R Us by a Boston private equity group. Boston's private equity market has grown substantially. especially in the private equity boom over the last few years private equity has established itself in the Boston business community. and an expanding Boston market for those bigger buyouts but also smaller venture capital deals. 186 | P a g e .
Thomas H.P. The growth of private equity in Boston has been largely accelerated by the success of large Boston private equity firms like Bain Capital. Bain Capital and Thomas H.While New York remains a relatively unchallenged hub for private equity activity. Childs Associates . here is a list of Boston private equity firms that will be updated in hopes of creating a very comprehensive resource for those interested in Boston private equity. Lee Partners.W. This is evident in the recent acquisition of Warner Music Co that was led by two Boston private equity firms. Berkshire Partners and Summit Partners. L. Lee Partners. TA Associates. Lincolnshire Management Morgenthaler Summit Partners TA Associates Thomas H. they also work together on large deals. Here is the list of Boston private equity firms: Advent International Audax Group Bain Capital LLC Berkshire Partners Boston Capital Ventures Boston Community Capital Boston Community Venture Fund Boston Millenia Partners Boston Ventures Calera Capital Charlesbank Great Hill Partners Heritage Partners IDG Ventures Boston J. In addition to the more well-known Boston Private equity firms. Although the major private equity groups in Boston compete amongst themselves. Lee Partners Weston Presidio 187 | P a g e . Boston is certainly among the top private equity cities in the country.
Today.000 firms from 1970 to 2007.com Permanent Link: Boston Private Equity Tags: Boston Private Equity.7 trillion of those transactions occurred between 2001 and 2007. While a lot of media and public scrutiny centers around the public-to-private transactions. This private equity report is nearly 200 pages and provides an extensive overview of how private equity has changed over recent decades. the majority of transactions involve acquiring private companies and corporate divisions. 188 | P a g e . with only 9% of the total value of global LBOs happening outside these areas. Almost 40% of private equity activity occurred from January 1.6 trillion. Instead. there is an increasing amount of private equity activity taking place beyond Western Europe and the U.com/2008/10/boston-private-equity. and $2.S. of the 37 years included in the study. Venture Capital Boston.Key Findings The World Economic Forum has released a report based on data gathered from private equity activity in 21. Boston Private Equity Groups.html Private Equity Report Private Equity Report New Report on Private Equity . (I wonder if private equity will use this to combat negative attention toward private equity over public-to-private buyouts?) Leveraged buyout activity takes place predominantly in Western Europe and the United States. this activity only accounts for 6. Private Equity Boston Link to This Resource: Boston Private Equity http://privateequityblogger. Boston Private Equity Firms. While it's difficult to summarize such a large report. The total value of firms acquired through leveraged buyouts is estimated in the study to be about $3.If you represent a Boston private equity firm and would like to be added to the list or you know of a Boston private equity group that is not listed please send an e-mail to Theo@peoblogger.7% of total transactions. private equity trends and exit strategies: WEF Private Equity Report 2008 Private equity activity has dramatically increased over recent years. 2004. I am mostly focusing on the important findings in buyout activity (LBOs especially). Private Equity in Boston. it does provide the key findings. as other regions warm up to the private equity industry. However. Boston Venture Capital.
as the number of buyout deals has fallen considerably to a four-year low.000 in 2000 and 2. Following with 24% was exits through secondary buyouts and only 13% of private equity investments took the exit route of an Initial Public Offering. No Credit. The current financial market has sharply limited the credit necessary to carry out these buyout deals. Private Equity Research.000 companies were held in LBO ownership as of 2007. Another key finding was the big increase in companies backed by. No Deal The major buyout deals made earlier this decade are no longer feasible with banks increasingly hesitant to loan money for potentially risky leveraged buyouts. a remarkable decline that signifies a decline in buyouts not only in the struggling U. Private Equity Reports.and operating under private equity ownership. according to an anonymous buyout executive. These are only some of the more noteworthy findings in the private equity report. the length of time that these companies are held in LBO status has increased. $2 billion is rumored to be the current limit for financing a deal. 14. Private Equity Data Link to This Resource: Private Equity Report http://privateequityblogger. For the year-to-date. Private Equity Report 2008. global buyout activity fell by 74% to $180 billion. and private equity firms have suffered as a result. Private equity investors seem to favor long term investments with 58% of private equity investments' exits occurring after 5 years from the initial transaction. Private equity firms seem to have resigned to smaller deals for the most part until credit returns to the market. I would not be surprised if the bias toward long term investments increases even more in the next couple years as investors are drawn toward more stable investments amid the financial instability. compared to just 5. making it the most common exit strategy.Research into private equity exit strategies revealed that 39% of exits are through trade sales to another corporation.html Buyout Deals Drop Buyout Deals Drop Number of Buyouts Drops from Credit Crunch Private equity firms have certainly felt the adverse effects of the global credit crunch. A buyout deal often relies on a large amount of leverage to purchase a majority stake in a company's equity.000 in the mid-1990s. if you're interested in viewing the whole 189 page report click here: the full private equity report from WEF Permanent Link: Private Equity Report Tags: Private Equity Report. The number of firms entering LBO status has outpaced the number leaving LBO status so a steady margin has formed. The last few years have seen a decline from "quick flips" (exits after only 2 years or less from the initial transaction) from the already low 12% of private equity deals. Also. market but globally as well.S. This is a far cry from the 189 | P a g e .com/2008/10/private-equity-report.
buyout deals drop. seeking to capitalize on the situation by investing the capital that they accumulated and turn a profit off a seemingly negative economic decline. and the private equity firms have relied on other sources of capital outside of bank debt. Recently. Many private equity firms are holding large amounts of capital "waiting on the sidelines" to invest once market conditions stabilize. through creative investment strategies and diverting their focus from exclusively private equity to alternative areas. many private equity firms have been able to survive.5% to only %61. credit crunch private equity. private equity has transformed from a strong reliance on debt for financing deals to more available resources like the recent private equity takeover of the Weather Channel with funding coming from GSO. and even profit.html Private Equity Structure Private Equity Structure Video of Conference Discussing Private Equity Structure Changes 190 | P a g e . More Hesitation over Buyouts It appears that private equity firms are exercising greater caution when considering buyouts as they fear that the worst of the financial crisis has yet to come. strong real estate business and its M&A advisory unit.type of large leveraged buyouts that took place just last year.9 billion acquisition of Clear Channel Communications led by Bain Capital and THL Partners. Permanent Link: Buyout Deals Drop Secondary source: Dealbook Tags: Leveraged buyouts. K.K. Some private equity firms see distressed market conditions as a positive. Blackstone's hedge fund. buyout deals. like the $17. The credit crisis is having obvious adverse effects on the private equity world. where buyout activity has fallen 83. The drop in private equity activity is most prevalent in the United States. This is not to say that there have been no private equity deals this year. However.com/2008/10/buyout-deals-drop. Blackstone has similarly expanded into other areas by strengthening its hedge fund arm. private equity decline Link to This Resource: Buyout Deals Drop http://privateequityblogger.R is reaching into alternative investment areas such as real estate and mezzanine financing. Change of Strategy The large private equity firms have reacted to the crisis by following the age-old investment strategy of diversifying. but there has been a marked decline in the number and size of deals.8 billion year-to-date. buyout deal. and many industry professionals fear that the worst has not been felt yet.
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This video is about 45 minutes.Today's video deals with private equity's structure changes as discussed by several qualified private equity fund and fund of funds managers. Private Equity Structure. Private Equity Exchange. The conference also deals with exit strategies for private equity groups.com and I will provide similar videos. Private Equity Structures Investors Link to This Resource: Private Equity Structure http://privateequityblogger. A major benefit of this video is the European perspective on private equity and it gives a good structure discussion. Private Equity. I wish that I could edit these private equity videos so that they are shorter. I'll look into this soon.mov Permanent Link: Private Equity Structure Video Tags: Private Equity Video.Conference 3: Industry structure change.com/2008/09/private-equity-structure. If you found this video especially beneficial please send me an email at Theo@peblogger. Private Equity Video. The video is from a source that I often look to for quality videos for private equity professionals. For email subscription here is the video URL: PEX 2007 LBO for professionals .html New York Private Equity Firms New York Private Equity Firms Top Private Equity Firms in New York 192 | P a g e . Private Equity Structure Models.
67 billion Apollo Management = 32. Flowers & Co. Goldman Sachs Principal Investment Area = 49. = 7 billion 193 | P a g e .22 billion Fortress Investment Group = 14 billion Clayton Dubilier & Rice = 11. Top 15 Private Equity Firms in New York Here is a list I've made from a list of the Top Private Equity Firms to only show the Top 15 New York Private Equity Firms by assets raised over last 5 yrs (billions).05 billion Kohlberg Kravis Roberts = 39.82 billion Blackstone Group = 23.3 billion Warburg Pincus = 23 billion Cerberus Capital Management = 14.9 billion AIG Investments = 14. In the near future I will be creating more articles based on private equity in New York.22 billion J.38 billion Lehman Brothers Private Equity = 10.C.New York City is a major hub for private equity activity so I've made the following list of the top private equity firms located in New York.
I will be adding to this list over the next months to build a more comprehensive private equity news resource. Private Equity In New York.New Mountain Capital = 6.html Private Equity Tracker Private Equity Tracker Private Equity Tracker Tool Today I am adding a new resource to private equity blogger.69 billion MatlinPatterson = 6.L. Ross & Co.com/2008/09/new-york-private-equity-firms.67 billion W. The private equity tracker tool is a new way to follow private equity firms and the deals and events involving the firms. You can find a direct link to each firm's tracker page with the most recent events for that private equity firm. New York City Private Equity. Private Equity Firm Tracker 3i Group PLC Admiral Capital Group Apollo Management AXA Private Equity Baring Private Equity The Carlyle Group Goldman Sachs Capital Partners Leonard Green & Partners KKR Private Equity 194 | P a g e . = 6. New York Private Equity Firms List.88 billion Permanent Link: Top New York Private Equity Firms Tags: New York Private Equity. New York City Private Equity Firms Link to This Resource: New York Private Equity Firms http://privateequityblogger.65 billion Welsh Carson Anderson & Stowe = 5.
html Private Equity Resume Private Equity Resume Private Equity Resume Advice Writing a private equity resume is unique from other resumes because it generally requires experience in finance as a prerequisite for being considered for a position in private equity. Private Equity Blogger. Private Equity Firms News. or better yet. Even if you're confident in your resume it doesn't hurt to have it edited by someone you respect. so here is an article with suggestions on how to compose a great resume. Private Equity News. speak with someone who has a job in private equity.Tags: Private Equity Tracker Tool. I just found a great article on crafting the ideal private equity resume from Mergers and Inquisitions. 195 | P a g e . If you are having trouble composing your resume seek help. Private Equity News. Private Equity tools. Here are some tips from M&I as well as my own on creating a great private equity resume: Resume Appearance: There is no excuse for a poorly written or incorrectly structured resume. There are a lot of resources that can help you make a winning resume. Another presumption is that you hold an MBA from a good school. Here are just a few: Contact your old professors. The presumption is that the applicant has worked in the investment banking sector or currently works as an investment banker. top Private equity firms Link to This Resource: Private Equity Tracker http://privateequityblogger. Private Equity Firm information. these two elements are not necessarily required but they are highly recommended for entering the private equity industry.com/2008/09/private-equity-tracker.
Private Equity Career. accretion/dilution modeling. Rather than just listing your duties that you carried out during the deal process. but be careful to get your advice from qualified sources like Vault which focuses specifically on business careers. Private Equity Career Advice. personality and other things.M&A (sellside and buyside). so don't spare any details that can help you appear as experienced as possible.LBO modeling. Permanent Link: Private Equity Resume Tags: Private Equity Resume. Follow-Ons. How to Write About Your Deals: The key for writing about your past deals that you've been involved in is to be unique and demonstrate how you specifically influenced and contributed to the deal process. valuation. IPOs. Private Equity. Convertibles. Private Equity Job Resume. Check out a career advice book to get good tips on writing a resume. Showing significant work experience by emphasizing the deals you worked on and how you contributed are key in this resume. private equity is different. A potential employer wants to know everything about what you've done at your former job. There is a reason that private equity firms want to hire people that have worked in investment banking or a similar financial area for at least two years: they don't want train you. led to 2 private equity buyers remaining in the auction process until the final round I hope this is helpful while you compose your resume and remember that while it can be tedious. this is an important step on your way to entering the rewarding private equity industry. DCF skills. they want a prepared associate who is experienced enough to enter private equity and immediately produce results. not strictly your professional experience. Debt The skills you gained . specifically mention how you helped in the deal.Look online for guidelines to writing a resume. Private Equity Resume Tips Link to This Resource: Private Equity Resume 196 | P a g e . Here are some key elements to highlight when explaining your past work experience: The number of deals you have worked on The types of deals you have worked on . it may seem like a lot of work but resumes are your first impression with your employer. M&I has a great example of what NOT to do and then a re-write of what to do: Poor example: $5B Sale Of Company Y To Company X Drafted Offering Memorandum and Management Presentation and tracked status of deal with potential buyers Managed due diligence process between Company Y and different buyers and responded to all inquiries Better example: 5B Sale Of Company Y To Company X Worked directly with CFO to build complex operating model of company involving 40 different properties across multiple states Created market analysis showing favorable trends in casino construction despite subprime-related problems. why not put in the extra effort? Focus on Professional Experience: While other employers in other industries focus on academic standing.
47 billion 7 Apax Partners $18.9 billion 13 3i Group $13.9 billion 16 Hellman & Friedman $12 billion 17 CCMP Capital $11.html Top Private Equity Funds Private Equity Funds 2008 List of 50 Top Private Equity Funds Here is a list of the top private equity funds. Top 50 Private Equity Funds 1 The Carlyle Group $32. The top fifty private equity funds in this list account for 75% of the world's global buyout activity and have a total buyout power of $2.html Private Equity Articles | What is Everyone Reading Private Equity Articles Popular Private Equity Blogger.3 billion 9 Providence Equity Partners $16.com/2008/09/private-equity-articles-what-is.7 billion 18 General Atlantic $11.1 billion 3 Goldman Sachs Principal Investment Area $31 billion 4 The Blackstone Group $28.37 billion $ 14 Warburg Pincus $13.com Articles Link to This Resource: Private Equity Articles | What is Everyone Reading http://privateequityblogger.3 billion 15 Terra Firma Capital Partners $12.5 billion 6 Permira $21.76 trillion.http://privateequityblogger.65 billion 11 Cinven $15.85 billion 8 Bain Capital $17.07 billion 12 Apollo Management $13.78 billion 197 | P a g e . ranked by size over the last five years.36 billion 5 TPG $23.36 billion 10 CVC Capital Partners $15.5 billion 2 Kohlberg Kravis Roberts $31.4 billion 19 Silver Lake Partners $11 billion 20 Teachers' Private Capital $10. according to IUF.com/2008/09/private-equity-resume.
Biggest Private Equity Funds Link to This Resource: Top Private Equity Funds http://privateequityblogger.57 billion 24 Charterhouse Capital Partners $9 billion 25 Lehman Brothers Private Equity $8.9 billion 38 AlpInvest Partners $5. Lee Partners $7.05 billion 36 Bridgepoint $6. List of Private Equity Funds by Size.1 billion 23 American Capital $9.4 billion 39 TA Associates $5.2 billion 40 Berkshire Partners $4. Dubilier & Rice $4 billion 48 ABN AMRO Capital $3.21 EQT Partners $10.5 billion 33 Onex $6.93 billion 50 Summit Partners $3.06 billion 47 Clayton.com/2008/09/top-private-equity-funds.26 billion 28 Sun Capital Partners $8 billion 29 BC Partners $7.7 billion 43 Advent International $4.74 billion 42 Welsh.6 billion 45 Nordic Capital $4.29 billion 27 Fortress Investment Group $8. Carson. Anderson & Stowe $4.6 billion 44 GTCR Golder Rauner $4.3 billion 34 Cerberus Capital Management $6. Largest Private Equity Funds.8 billion 41 Pacific Equity Partners $4.05 billion 37 Doughty Hanson & Co $5.93 billion 49 Oaktree Capital Management $3.9 billion 30 Thomas H. Best Private Equity Funds.html Private Equity Salary Cut Private Equity Salary Cut 198 | P a g e .5 billion 31 Leonard Green & Partners $7.15 billion 32 Madison Dearborn Partners $6.88 billion Permanent Link: Top Private Equity Funds Tags: Top Private Equity Funds.54 billion 46 Oak Investment Partners $4.1 billion 35 PAI Partners $6.5 billion 26 Candover $8.28 billion 22 First Reserve Corporation $10.
Private Equity Link to This Resource: Private Equity Salary Cut http://privateequityblogger.Salary of Private Equity Dealmakers Could Drop 75% The trouble in the financial sector inevitably promotes caution in the private equity industry. Private Equity Management. Private Equity Salaries.‖ Mr. ―Compensation for everyone in the financial services industry is clearly going to fall over the next few years.html Buyouts and Banks Buyouts and Banks Fed Hopes Buyout Firms Will Rescue Banks 199 | P a g e . especially among buyout firms and some believe that this will cause major reductions in the salaries paid to dealmakers at buyout firms.‖ Source: Bloomberg Permanent Link: Private Equity Salary Cut Tags: Private Equity Compensation. Hands believes that the current economic crisis will force private equity firms to reevaluate their strategy and focus on safer. British financier Guy Hands makes the projection based on the idea that private equity deals will have a longer life than before--an average of 8 years--as firms exercise more caution. This would inevitably lead to huge cuts in the salary of private equity dealmakers who have been compensated very well in the past as more buyouts were executed.com/2008/09/private-equity-salary-cut. Bloomberg news reports that private equity salaries could face major reductions--as high as a 75% cut--as a result of the credit crunch. Private Equity Salary. more long-term focused deals--a sharp departure from the way buyout firms have operated up until this economic decline. Hands told Bloomberg. ―This will be particularly true for private equity general partners who are having the reduction. both because of the time it takes to invest and because of the time it takes to harvest.
It is clear that the future of the financial market will in some way be determined by private equity. buyout firms can not only own as much as one third of a bank but also are allowed to have a stronger presence in the boardroom. The buyout industry possesses a lot of capital and the Fed would like to see that capital invested into the struggling banking industry. many believe it will not be in the form of big investments in major banks. we see it as unlikely. Previously." One reason that buyout firms may be skeptical about investing in the banking sector is the unsuccessful investments in banks already this year. Private Equity and Buyouts. it is not likely that the move will fix the banking problem according to Jaret Seiberg. Private Equity Credit Crisis. a financial services analyst at the Stanford Group in Washington. Buyouts and Banks 200 | P a g e . Now. While Monday's announcement may heighten buyout firms' interest in the banking sector. private equity firms have expressed some interest after the Federal Reserve's recent move. The buyout industry is estimated to hold $400 billion in capital that could be invested. The latest and most obvious move by the Fed to attract private equity is Monday's announcement that it will loosen regulation on how much of a bank a private equity firm can own. according to the research company Preqin. But buyout firms are expected to wait until the Federal Reserve and Congress reach an agreement on a bailout plan. The previous rules restricted non-banking entities from purchasing more than 25% stake in a bank. but they do not open the floodgates to private equity investments as some investors had hoped. the Fed had resisted the idea of opening up banks to outside investors but the credit crisis has forced the Federal Reserve to consider new options in private equity. However. While this could mitigate the current crisis. but rather smaller and middle-market banks that are less subject to the volatility of the market. Private Equity and Federal Reserve. In a research note he wrote that "These changes are helpful. Permanent Link: Private Equity and Banks Secondary Source: CNN Tags: Private Equity and Banks. under the new loosened regulation. If private equity does invest in banks.The federal reserve has been actively pursuing private equity as a solution to the banking crisis. Private Equity Firms.
Rubenstein is the co-founder of the Carlyle Group. as may be evident in past videos. An important note is that David Rubenstein suggests that private equity will have an important role in buying the assets that the government has acquired. Mr.com/2008/09/buyouts-and-banks. He offers his take on the current economic crisis. Currently. Rubenstein. where he appears a bit more solumn while addressing a serious subject. The following interview is an interview with Mr. Here is the video interview of David Rubenstein discussing the current financial market: Private Equity On Pause David Rubenstein and President George W. in particular the federal government's response to the situation.Link to This Resource: Buyouts and Banks http://privateequityblogger. since its creation in 1987 the Carlyle Group has grown into a firm that manages more than $87 billion. Rubenstein is a prominent voice in private equity. his name is almost always among the lead speakers at major private equity forums such as the Private Equity Segment of the World Economic Forum. David Rubenstein holds the position of Managing Director of the Carlyle Group.html David Rubenstein David Rubenstein David Rubenstein Interview on the Economic Crisis David Rubenstein is personally one of my favorite figures in private equity. Bush 201 | P a g e .
we didn't have any funds. And we had a deal that seemed like it would be the greatest deal since sliced bread. And we thought. His name is George W. (Source) If you are viewing this through e-mail subscription please click this link to view the video. he went on to greater success by becoming the governor of Texas almost immediately after leaving the Carlyle Group. Told a lot of jokes. what could be better? So the financing was there. Came to all the meetings. But okay. And then those who were flying realized that they weren't going to be getting the food that they thought they were going to get. So you know if you said to me. Bush once held a seat on the board of directors on one of the Carlyle Group's first acquisitions. I haven't been invited to the White House for any things.A little known fact about the Carlyle Group is that President George W.we'll do a favor for this guy. We couldn't anticipate the Gulf War. We're going to sell it to you guys 'cause some of our people [Carlyle cofounders Steve Norris and Dan D'Aniello and Bush crony Fred Malek] used to work at Marriott. In this case. Permanent Link: David Rubenstein Interview Tags: David Rubenstein. well I think I'm getting out of this business anyway. At the beginning of Carlyle . thanks . Bush. it usually is. We'll put him on the board because . You know. You don't know that much about the company. He said. And I don't really like it that much. Well. look. Marriott said to us. somebody [Fred Malek] came to me and said. Not that many clean ones. It was handed to us. But when we were putting the board together. Private Equity. Maybe you should do something else. So I'm probably going to resign from the board. We didn't have any dedicated funds. We dominate all the markets and we're not going to do an auction. In that deal. And I said. He's kind of down on his luck a bit. David Rubenstein has a great account of President Bush's time with the Carlyle Group: Let me talk about a bad deal. Management team has been there for 10 years. David Rubenstein Carlyle Group. He became President of the United States. then the Gulf War came. we're going to sell our airline catering business [Caterair]. he wouldn't have been in that category. I met the guy. I'm not sure this is really for you.you know .early . name 25 million people who would maybe be President of the United States. let me meet the guy. Private Equity Manager David Rubenstein. . Anyway. Gold plated.you know. And all of a sudden people stopped flying. he's done a favor for us. I said well we're not usually in that business. So you never know. You know no matter how smart we think we are or how good we are. Number one in the world. Could you put him on the board? Pay him a salary and he'll be a good board member and be a loyal vote for the management and so forth. the only interesting thing about the deal--and we lost all our money in it. Our money and our investors' money in it.didn't think I'd ever see him again. Private Equity Managers. after about three years . And after a while I kind of said to him. . something can go wrong. While President Bush did not seem to be cut out for the private equity industry. Needs a job. So they're going to give us a company. And if something seems too good in life to be true. So no matter how good you think a company can be something can go wrong. Needs a board position. . Good management team.It's number one in the world. I mention this because it reminds us all the time we shouldn't have hubris. Needs some board positions. look there is a guy who would like to be on the board. Got all the equipment you need. So the airline catering business has gone this way. I said I don't think he adds that much value. Because I don't think you're adding that much value to the board. 202 | P a g e . this is an easy business. We put him on the board and [he] spent three years.
Through trade shows. but the Partner has four primary duties: Managing the Partnership and Operations: Typically Senior Partners oversee the overall productivity and performance of the firm and its employees and the day-to-day operational tasks are assigned to the other Partners.Link to This Resource: David Rubenstein http://privateequityblogger. as well as their numerous contacts to find potential investment opportunities. a Partner must also make time to keep up on industry trends and stay ahead of the competition. Partners at private equity firms take on a wide range of responsibilities. which has a two-fold benefit of increasing the efficiency of the firm through the Associates and grooming future management.com/2008/09/david-rubenstein. The logic behind the dramatic pay increase is that a Partner has significant abilities in judging deals. Partners play a pivotal role in searching out and executing deals for the private equity firm. The Partner‘s involvement in the investment is meant to ensure its continued success which hopefully translates to profits for the private equity firm. In other cases. Another task is the mentoring of the young talent by overseeing their work with helpful criticism and advice. In this way. managing employees and generating high profits for the firm. such as a seat on the investment‘s board. who use their extensive investment knowledge and experience in the industry. Supervising Investments: The degree that Partners are involved in the firm‘s investments varies by deal but generally Partners take on at least a small role in monitoring the investment. and with reason. The private equity Partner is rewarded significantly higher compensation than associates (although they are paid very well too).html Private Equity Firm: Partner Private Equity Firm: Partner The Role of a Partner at a Private Equity Firm The position of Partner at a private equity firm is a coveted one. private equity forums and industry publications a Partner is able to keep up with the ever-evolving private equity industry. Partners have a great deal of influence over the success of a private equity firm and therefore Partners are the top-tier 203 | P a g e . The degree in which each partner specializes in a certain area varies by the firm‘s size and reach. While these duties are the most time-consuming and have the highest priority. This is crucial for Partners because bad relations with investors could translate to a capital drought for the firm‘s private equity funds. As you can see. This could be only a minimal hand in the company. Sourcing Deals: The majority of deals come from Partners. Partner Relations: Finding new Limited Partners and maintaining good relationships with existing Limited Partners is another important duty of Partners. the Partner takes on a very active role in the life of the investment by managing the operational aspects of an acquired company.
For more info: Tuck Center for Private Equity Permanent Link: Private Equity Firm Partner Tags: Private Equity Firm Partner. Private Equity Jobs. Partner at a Private Equity Firm Link to This Resource: Private Equity Firm: Partner http://privateequityblogger. Private Equity Partner.com/2008/09/private-equity-firm-partner. Private Equity Careers.of business professionals. Private Equity. Private Equity Positions.html Private Equity Blogs Private Equity Blogs Why Don't Private Equity Firms Blog? 204 | P a g e . The position is difficult but the compensation makes it well worth the effort for most Partners and the allure of a Senior Partner position makes the Partner role an envied rank in private equity firms.
look at the venture capital blogs. So the nature of the business kind of inhibits blogging.except venture capital. But to that I argue that it would benefit private equity firms to start a blog too. size etc. especially with so much negative scrutiny by the media and the public in general. they offer tips and strategies or just talk about their life. Many VCs aren't even blogging strictly on venture capital. to the problem of how private equity is not really designed for blogging. I agree that there is a certain amount of limitation placed on private equity firms because they aren't promoting or offering a product as well as just how vast private equity investing ranges by industry. So opening a blog about a firm is a little counter-intuitive to the industry. private equity initially spent a great deal of effort trying to escape the public attention rather than attract it.This question of why private equity firms are not blogging at the same pace as the rest of the business world was originally by Private Equity Database's Blog and it led to the rather long response that follows: First.. As you mentioned. and it may outweigh the aforementioned negatives. there are a lot of VCs blogging. Second. I remember a news story that talked about venture capital bloggers talking about everything.. While I don't 205 | P a g e . First.
Private Equity Firms. The industry has attracted criticism for its lack of transparency with investors but more so with the public. I think. So while private equity is not automatically geared for blogging there are other avenues that the firm could use that would help draw awareness for the firm and potentially expand their contacts. So while I agree that this could strongly benefit whatever private equity firm takes the lead and starts blogging. Private Equity Firms Blogs. This leads to my second argument for the benefits of private equity firms blogging: creating a firm blog enhances the accessibility for the firm to the public.know how that translates to business for the specific VC. Even a small effort like a blog is a step in the right direction for the private equity industry as it works to transform its bad public image. The first is pretty unlikely. The biggest problem. I do know that the ones blogging are making contacts and familiarizing the public with venture capital. I don't see it happening anytime soon.com/2008/09/private-equity-blogs. the latter wouldn't be very popular. so having a blog would mean either using a willing member of management that is authoritative for the entire firm or hiring an impersonal writer that is limited to press releases and firm/industry data. who want to know more about the firm that is acquiring familiar public companies. Private Equity Industry Blogs Link to This Resource: Private Equity Blogs http://privateequityblogger. is that private equity firms are so large and impersonal by definition.html Private Equity and Hedge Funds Private Equity and Hedge Funds Different Private Equity and Hedge Funds 206 | P a g e . Permanent Link: Private Equity Blogs Tags: Private Equity Blogs.
html Goldman Sachs Private Equity Goldman Sachs Private Equity Goldman Sachs Private Equity | GS Capital Partners Goldman Sachs is one of the most successful investment banking firms and the Goldman Sachs private equity arm is no exception to the firm's reputation.com/2008/09/private-equity-and-hedge-funds. It focuses on different private equity funds and hedge funds that is pretty extensive.I recently found this PowerPoint presentation from Richard Wilson's Hedge Fund Blog. Private Equity Funds and Hedge Funds. Private Equity. Hedge Funds Link to This Resource: Private Equity and Hedge Funds http://privateequityblogger. Permanent Link: Private Equity and Hedge Funds Tags: Private Equity and Hedge Funds. For a complete look at GS Capital Partners check out this site. It provides a great overview of how funds are structured and operate but also delves into some of the more complex aspects. Here is the link to the PowerPoint. GS Capital 207 | P a g e . Hedge Funds and Private Equity Funds.
Goldman Sachs Private Equity Branch. venture capital and distressed securities.75bn 1995 Global GS Capital Partners III $2. including how a particular opportunity may affect the portfolio's volatility and risk. representing a considerable branch of Goldman Sachs' business. Goldman Sachs Private Equity Investment. PEG maintains an –open-door policy with respect to potential investments. Here is a summary provided by GS Capital Partners: GS Capital Partners Size Year Formed Geography $1. the Private Equity Group consists of over 85 professionals. the United Kingdom. Tags: Goldman Sachs Private Equity. competitive advantages. growth financings. PEG casts a wide net in an effort to identify the best private equity fund managers in the world.3bn 2007 Global More from the Goldman Sachs Private Equity Group website: Goldman Sachs Private Equity Group (PEG) is a leading investor in private equity funds. and return profiles. continental Europe. geographic focus. is a significant co-investor in direct investments.25bn 2000 Global GS Capital Partners V $8.5bn 2005 Global GS Capital Partners VI $20. natural resources. Based in New York. Latin America and Asia with strategies that include leveraged buyouts. and welcomes information regarding prospective private equity fund offerings and secondary investment opportunities.html Venture Capital Associate Venture Capital Associate The Responsibilities of a Venture Capital Associate 208 | P a g e . Hong Kong and San Francisco. PEG's comprehensive global private equity program seeks to construct a diversified private equity portfolio and considers each potential investment's strategy. Private Equity Goldman Sachs firm Link to This Resource: Goldman Sachs Private Equity http://privateequityblogger.04bn 1992 Global GS Capital Partners Asia $300mm 1994 Asia GS Capital Partners II $1.78bn 1998 Global GS Capital Partners 2000 $5. Goldman Sachs Private Equity Group. PEG primarily makes commitments to private equity funds located in the United States.com/2008/09/goldman-sachs-private-equity. Tokyo.Partners runs multiple funds with over $1 billion in assets under management. London. PEG believes that its reputation and access to the resources of Goldman Sachs may provide significant advantages to its investments. and is an active provider of liquidity and portfolio management solutions to existing private equity investors.
smart talent hoping to succeed in a competitive and exciting industry. Associates are generally young. Due Diligence: Researching and talking to competitors Talking to customers Interviewing and gathering information from industry experts Working with technical consultants to evaluate technologies Conducting background checks on management Talking with previous investors 209 | P a g e . The very high rate of compensation also helps attract elite young professionals to venture capital.An Associate position in a venture capital firm is one of the most sought-after destination for recent business school graduates. While most gain a year or two of experience in the investment banking sector after obtaining an MBA. The common responsibilities of a venture capital Associate can be divided into three categories: due diligence. sourcing deals and supporting portfolio companies.
investment conferences and other relevant events Networking with other VCs Consulting lawyers and accountants Supporting Portfolio Companies: Helping conduct research on behalf of the company Attending the Board‘s meetings Supporting and advising the management team Find and screen possible management candidates Work with potential acquirers of the company Help acquire other companies and find new sources of capital These are the majority of the duties that Associates perform. Venture Capital Firm Associate.Building valuation models Sourcing Deals: Consulting and meeting with investment banking analysts Consulting with market research firms Attending trade shows. Venture Capital. Venture Capital Career. Venture Capital Jobs Link to This Resource: Venture Capital Associate http://privateequityblogger. Source: Tuck Center for Private Equity and Venture Capital Permanent Link: Venture Capital Associate Tags: Venture Capital Associate. and it gives you an idea of the work that an Associate does at a venture capital firm. Private Equity Associate.html Private Equity Capital Private Equity Capital How Private Equity Capital May Help the Economy 210 | P a g e .com/2008/09/venture-capital-associate.
com/business_law/2008/09/private-equity. This is not to say that private equity firms haven't felt the effects of the economy's decline. but the industry has maintained a fair amount of capital throughout that many hope will revive the economy. Private Equity Economy. Permanent Link: Private Equity Capital For e-mail subscribers. Private equity firms possess a large amount of this capital and many people are advocating for increased private equity investment as a sort of stimulus to the economy. Now. If you recall about two years earlier.As I alluded to in today's earlier post about the state of private equity.typepad. the economy is in dire need of capital to support the financial giants that have been collapsing recently.com/2008/09/private-equity-capital. much to the contrary.com/t/trackback/89778/33568386 Link to This Resource: Private Equity Capital http://privateequityblogger. Dale Oesterle mentions the irony of this situation in his blog here.typepad. many firms are holding a lot of assets and simply waiting through the rough economic conditions for solid investment opportunities. at least in a minor way. Private Equity Reputation.html Tags: Private Equity Capital.html 211 | P a g e . here is the link to the BLF blog that I mentioned: http://lawprofessors. private equity firms were attracting a lot of criticism for the perceived secrecy of the big buyouts they were making and the potential risk in the use of leverage to conduct these buyouts. Private Equity Capital Investment Trackback: http://www.
Private Equity Industry News Link to This Resource: Private Equity News http://privateequityblogger. and turn enormous profits on the acquisitions. This is because the nature of private equity is to buy large firms. which may be selling unusually low in a bad market. Private Equity Video. Private Equity. While a major decline in the market is potentially harmful to private equity.html Private Equity Videos Private Equity Videos Private Equity Investment Videos 212 | P a g e . Private Equity Videos.Private Equity News Private Equity News The State of Private Equity News Video It seems all anyone is talking about is the recent collapse of Lehman Brothers and how the financial crises will effect the economy. specifically private equity.com/2008/09/private-equity-news_18. Here is a brief private equity video that talks about the state of private equity under the economic crisis (click the link to watch the video): State of Private Equity Permanent Link: Private Equity News Tags: Private Equity News. it is worth noting that private equity often thrives in down markets.
watch great private equity lectures or just take a break from reading text articles. I do watch a lot of private equity videos. Some of these videos make it into posts but a lot are never included in the blog. reports and white papers.Watching private equity videos can be a great way to keep up with industry news. the following private equity videos have been made into blog posts: Jim Cramer Discusses Private Equity and the Credit Crunch The Future of Venture Capital Private Equity in Africa Private Equity in China Angel Investing Video Part 1 Angel Investing Video Part 2 Angel Investing Video Part 3 Panel Discussion of a Venture Capital Term Sheet Raising Venture Capital Video Venture Capital Bloggers Video Raising Money From Angel Investors Private Equity Boom While the majority of my private equity research for this blog is through reading articles. I've created a collection of the private equity video blog posts. Here are the private equity videos that are not included in posts: 213 | P a g e .
com/2008/09/private-equity-videos.com/2008/09/private-equity-videos. Venture Capital Videos.com/ 214 | P a g e . on the other side. here is the URL for Private Equity Recruitment: http://www. which spans globally including Asia and the Middle East. Private Equity Recruitment hosts more jobs on their website than any other private equity recruiter in the UK and Europe. Until I can correct the link problem for e-mail subscribers. if you are hoping to connect with a private equity firm then Private Equity Recruitment is a great tool.perecruit. this resource specializes exclusively on the venture capital and private equity industry. Angel Investing Videos Link to This Resource: Private Equity Videos http://privateequityblogger. Collection of Private Equity Videos. Private Equity Blogger: Private Equity Videos. This is a valuable resource for professionals interested in entering the private equity and venture capital industry.html Private Equity Recruitment Private Equity Recruitment Private Equity and Venture Capital Recruitment If you are searching for qualified private equity recruits for your firm or.Middle East World Economic Forum Discussing Private Equity 2007 Private Equity Real Estate Video E-mail subscribers can view this post at: http://privateequityblogger.html Permanent Link: Private Equity Videos Tags: Private Equity Videos. Unlike the broad financial recruitment websites. Another benefit is the size of the agency. One major benefit is the international reach of Private Equity Recruitment Ltd. Private Equity Videos List.
infrastructure and private fund investments. With a dim future for the 215 | P a g e . credit related investments.Permanent Link: Private Equity Recruitment Tags: Private Equity Recruitment. The private equity department of Lehman Brothers has amassed $30 billion in assets under management. Aside from the broader economic implications. Private Equity Recruiters. In response.com/2008/09/private-equity-recruitment. 2008. real estate.html Lehman Brothers Lehman Brothers The Future of Lehman Brothers Private Equity Lehman Brothers Holdings is a finance giant that has dominated the news this week with speculation that the firm would file for bankruptcy. This rumor was confirmed when Lehman Brothers filed for Chapter 11 bankruptcy protection on the morning of September 15. what does this mean for Lehman Brothers' substantial private equity business? Since entering private equity in 1984. Lehman Brothers' shares plummeted bringing the Dow Jones to its largest drop since the wake of September 11. according to the firm's website. Private Equity and Venture Capital Recruitment Link to This Resource: Private Equity Recruitment http://privateequityblogger. venture capital. Lehman Brothers has been a major player in private equity by investing in merchant banking. 2001. Private Equity Recruiting.
Hellman & Friedman and Clayton Dubilier & Rice. Lehman Brothers Investment Management. Lehman Brothers Holdings Link to This Resource: Lehman Brothers http://privateequityblogger. Lehman Brothers Private Equity. the future of the private equity department is in jeopardy. Lehman Brothers Bankruptcy. According to the Street Insider.html Jim Cramer on Private Equity Jim Cramer on Private Equity Jim Cramer Discusses Private Equity 216 | P a g e . Lehman Brothers will likely take its time searching out potential buyers and selling off the remaining assets of the company. The only hope is to seek out potential buyers that would absorb the private equity branch. The fall of Lehman Brothers Holdings is only the latest in a series of major blows to the market.company. the top firms that may buy the investment management division are limited to Bain Capital. Ultimately. Lehman Brothers Private Equity WSJ Permanent Link: Lehman Brothers Tags: Lehman Brothers. following the government takeover of mortgage giants Freddie Mac and Fannie Mae. the impending purchase of the Lehman Brothers' investment management division will decide how private equity is directly effected.com/2008/09/lehman-brothers.
html Private Equity Council Private Equity Council Private Equity Council Resource 217 | P a g e .Most people have seen Jim Cramer excitedly shouting financial advice on CNBC's "Mad Money. Today's post features a video interview of Mr. Private Equity Videos Link to This Resource: Jim Cramer on Private Equity http://privateequityblogger." In addition to his popular TV show. Jim Cramer. Permanent Link: Jim Cramer on Private Equity Tags: Private Equity Jim Cramer. Cramer believes "breaking the private equity rules" will inject some capital into the struggling banking sector.com/2008/09/jim-cramer-on-private-equity. I can't get the size right. Private Equity Capital. Jim Cramer is a best-selling author and former hedge fund manager. He suggests loosening the rules limiting the ability of private equity firms to buy large shares in banks. Private Equity and the Economy. hopefully this looks alright. Cramer discussing private equity and its role in reviving the economy. Private Equity Firms.
C. Private Equity Council. I recommend visiting the Private Equity Council to learn more about private equity. research and data on private equity.html Bolt On Acquisition Bolt On Acquisition Private Equity Firms Use Bolt On Acquisitions 218 | P a g e . Private Equity Tools Link to This Resource: Private Equity Council http://privateequityblogger. Private Equity Council Research.com/2008/09/private-equity-council.The Private Equity Council is a information and research center based in Washington. D. Private Equity Research. Permanent Link: Private Equity Council Tags: Private Equity. The PEC is a great informational resource that has extensive white papers. The website is updated fairly frequently with research on current events effecting private equity.
According to a recent news article. 219 | P a g e . This is especially evident in a new BDO survey of private equity firms in the UK. Additionally. 97% of private equity firms predict that at least one in four of the companies in their portfolios to undertake a bolt on acquisition prior to exit. with 51% of the private equity firms expecting to acquire another business prior to being sold on. As valuations decrease. This method has gained popularity particularly in down markets when private equity firms need another source to enhance the appeal of the company prior to sale. The survey reports that private equity firms still want to make acquisitions. the current economic decline has given way to a rise in bolt on acquisitions. 70% of the firms responded that at least have of their portfolio companies would add a bolt on acquisition.A bolt on acquisition is a term in private equity that refers to when a private equity-backed company acquires another company as a "bolt on" to enhance the private equity-backed company's value.
The same goes for lower level employees at private equity firms. private equity mergers and acquisitions Link to This Resource: Bolt On Acquisition http://privateequityblogger. corporate finance partner at BDO Stoy Hayward‘s Birmingham office observed: ―Although private equity company sales are slowing. there is a massive demand to bolt on acquisitions to existing investments. There are over 1. private equity firms are using bolt on acquisitions to add value of their portfolio companies. Although carried interest is often criticized for taking money from the investors. Private equity firms use skilled management teams to correct the problems and ineffective parts of the company and many times this intervention prevents the company from further declining or even failing. private equity acquisitions.com/2008/09/bolt-on-acquisition. Bolt on acquisitions.Roger Buckley. so managers and their staff are motivated to produce good results to investors. By utilizing a team of researchers the private equity firm is able to identify most risks that would not otherwise be found. Permanent Link: Bolt On Acquisition Tags: Bolt On Acquisition. experienced managers that tend to perform very well. Private equity managers are paid very well and so it is easy to attract high caliber.‖ In an uncertain global financial market. they tend to be the top young business school graduates.200 mid-market private equity portfolio companies and bolt-on deals will underpin a lot of M&A in the mid-market for the next few years. which benefits now only the private equity firm but also the company. This allows private equity firms to reform the companies without the constraint of having to report quarterly to the SEC or similar distractions. Private equity firms generally perform very rigorous due diligence on potential investments. it is a very big incentive for managers. private equity firms work outside the public eye and do not have to follow the same transparency standards that public firms and funds must adhere to. here are just five advantages of private equity for not only investors but also the companies that private equity firms acquire: Companies that are backed or acquired by private equity firms are often made more efficient and produce higher profits. 220 | P a g e . The management receives carried interest. private equity outlook. a portion of the profits. By definition.html Advantages of Private Equity Advantages of Private Equity Top 5 Advantages of Private Equity Investing in a private equity fund has a lot of advantages compared to other investment areas.
private equity taxes. Advantages of Private Equity. This has caused some public criticism. Private Equity. and the risk of loss involved in private equity. They believe that carried interest is a logical reward for their invested time. Whether carried interest will be considered as general income is of huge importance to managers.com/2008/09/advantages-of-private-equity. private equity carried interest. Here is a really well done and extensive article that looks at the possibility of increasing tax on private equity carried interest and the possible ramifications of this. claiming that their performance fees are different than general income. Permanent Link: Private Equity Tax Tags: Private equity tax. Private Equity Benefits. Benefits of Private Equity.Permanent Link: Advantages of Private Equity Tags: Private Equity Advantages.html Private Equity Tax Private Equity Tax The Private Equity Tax Debate Private equity firms along with hedge funds have received a lot of criticism asserting that they receive preferential tax treatment.html Private Equity Fund of Funds 221 | P a g e . The charge stems from a "tax loophole" involving the substantial performance fees that private equity managers.com/2008/09/private-equity-tax. Private equity managers argue that they should not be taxed at 35%. resources and services. Private equity and hedge fund managers have protested any changes to the current tax code. Why Choose Private Equity? Link to This Resource: Advantages of Private Equity http://privateequityblogger. which make up a large part of the managers' income. especially among politicians who have put forth legislation to correct the tax treatment of management fees. as they stand to lose substantial earnings through this tax reform. carried interest tax Link to This Resource: Private Equity Tax http://privateequityblogger. The performance fees are taxed by only 15% rather than the top income tax of 35%. private equity capital gains tax.
'Back office' operations should be a big concern for investors. This is a critical point for selecting a manager. Experience The popularity of fund of funds has led to the emergence of many "me too" funds that have little to no prior experience in private equity or managing a fund of funds. showing that he is capable of surviving good and bad financial cycles. the performance of private equity fund of funds is more difficult to analyze. This is because in private equity the investor must consider four elements: the internal rate of return (IRR). A good manager can clearly and expertly explain his strategy to the investors.Private Equity Fund of Funds Private Equity Fund of Funds Manager Selection Private equity fund of funds are investment vehicles that pool investors' money to invest in private equity funds. Overall. Performance Unlike traditional financial markets. the private equity manager should have a proven long-term record. and as private equity evolves a greater transparency in the 'back office' is expected by investors. important for the success of the fund of funds. Strategy In terms of strategy. multiples. his management team often decides the success of the fund. many managers differ but the quality to look for here is clarity. Additionally. A fund of funds manager is. timing and return of cash. management team. a manager should have prior experience in private equity that has constructed his strategy. and the strategies and deal funds. There are three major qualifications to look at when selecting your manager: performance. and a consistent focus is on the management team and operations. Specifically in the area of private equity fund of funds. Proven experience in private equity or managing a fund is a big factor to consider when selecting a 222 | P a g e . while he is the head manager. you should look for a coherent and competent team standing behind the manager. These all must be taken into consideration and weighted more or less equally when examining a manager's global performance. Management Team When performing due diligence on a fund of funds you should follow the basics that apply to other funds. therefore selecting a qualified fund of funds manager should be considered thoroughly. of course.
com/2008/09/private-equity-news. Also. private equity fund of funds selection Link to This Resource: Private Equity Fund of Funds http://privateequityblogger. Private Equity Interview. Private Equity Videos Link to This Resource: Private Equity News http://privateequityblogger. Seniority often makes for a more knowledgeable and competent manager--although there are also very successful rookie fund managers--but also an experienced manager usually brings a strong staff that has confidence in the manager.html Private Equity News Private Equity News Private Equity News Video The following video is an interview of Linley Capital Managing's John Jonge Poerink. Permanent Link: Private Equity Fund of Funds Manager Tags: Private Equity Fund of funds. These are just some major points to consider when selecting a private equity fund of funds manager. Poerink speaks of the future of private equity and how big buyouts can still happen after the credit crunch: Permanent Link: Private Equity Outlook Video Tags: Private Equity Outlook. Private Equity News.com/2008/09/private-equity-fund-of-funds. private equity funds of funds manager.manager. private equity fund of funds management. private equity funds. Private Equity. selecting a fund of funds manager.html Elevator Pitch Elevator Pitch Private Equity and Venture Capital Elevator Pitch 223 | P a g e . he discusses how his new firm plans to succeed in the rough financial market. but extensive interviews and research will ultimately weed out the less qualified managers and hopefully lead the fund of funds to success.
The elevator pitch is the situation in which a person with a business opportunity or idea has a chance opportunity to attract a potential investor--like a short elevator ride with a wealthy investor. Unlike formal meetings where you are able to show data, slides or videos and give a lengthy proposal to investors, the elevator pitch is a brief oral presentation that will hopefully interest the investor enough that he will want to hear more through a full presentation. Be Brief and Interesting The key to a successful elevator pitch is brevity. While you don't want to appear unprofessional by not listing enough real details, a quick outline of your business idea will leave your audience interested. Too often, great opportunities with investors are squandered by a boring, drawn-out presentation which would be better suited for an office than whatever casual setting. Remember, elevator pitches take the investor's time and if it isn't short and interesting, the investor may immediately reject your idea. Try For a Full Meeting If the potential investors seems interested in your idea--and most investors make it very clear when they are not--then try to arrange for a full meeting to discuss your idea, or at least offer to send the investor a more detailed business plan. The point of the elevator pitch is not to immediately secure an investment, it is to court potential investors and spark interest in your idea. Explain Your Idea For the Investor Your idea may be really exciting to you, but investors are mostly interested in making money from your idea. So explain your idea in terms of benefiting the investor, like how your idea will prevail over your competitors and how that will translate to profits. The point is to not get too wrapped up in your idea that you forget to highlight incentives for the investor too. The elevator pitch is a great tool for conveying your idea simply to potential investors, and while it may not always work for you, when it does work it can be really great, just ask Joe Luciano. He understands the power of the pitch, Luciano is the owner of Motion Golf, and in 2006 he made an incredibly successful pitch to a roomful of investors. Using the elevator pitch method he gave a short speech of how his use of business idea for sophisticated video technology in golf could make the investors rich. One of the investors liked his pitch so much that he invested $600,000 and has since invested more than $2 million in Luciano's company. As success stories like this show, developing a good elevator pitch is critical for entrepreneurs looking for capital. Permanent Link: Elevator Pitch Tags: Private Equity Elevator Pitch, Elevator Pitch, Venture Capital Elevator Pitch, Elevator Pitch for Venture Capitalists, Angel Investors Elevator Pitch Link to This Resource: Elevator Pitch http://privateequityblogger.com/2008/09/elevator-pitch.html 224 | P a g e
PrivateEquityBlogger.com Affiliations & Media Partners Affiliations Affiliations & Media Partners
The Private Equity Institute "We provide both classroom and web class training by private equity professionals from our New York City class room. Our Intensive Training course provides a comprehensive introduction to PPMs, valuation, financial modeling, LBOs, and more. The Fund Creation course is more advanced training focusing on the practical knowledge required to create a private equity fund. Graduates will receive a diploma and be given access to our Private Equity 2.0 web community. Here, you will gain access to our private equity jobs database, be able to gain private equity deal experience by working with private companies raising capital on our PESE and Deal Management Process web sites. In addition, graduates will have access to our private equity investors database, be provided with the latest private equity news and be given discounts to private equity events. Graduates can also use the professional profile or intern profile pages to help find positions in the private equity industry. Enroll now or click here to ask questions."
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Private Equity India Private Equity India Private Equity Boom in India
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Private equity is expanding past the traditional major financial regions like the UK and United States to the recently booming economies in the East. One of these newly emerging private equity markets is India. Private Equity Private equity has exploded in India, in terms of both the volume and the size of deals. Last year was a big year for India domestically, with the number of total mergers and acquisitions and private equity deals increasing from 697 in 2006 to 867. The more impressive increase from 2006 to 2007 is in the size of deals which rose by 82%. The following chart represents the private equity deals in India:
The United States accounts for a very large part of the private equity investment in India. In 2007 it was estimated that the U.S. is responsible for 45% of the private equity investment into India. Asian countries, excluding India, account for 18% and Europe only 12%. These numbers will likely change in 2008 as the U.S. private equity deals have declined this year and China is predicted to rapidly increase its investing abroad. Venture Capital 226 | P a g e
As for venture capital, India has seen a similar boom with a strong start to 2008. In the second quarter of 2008, India attracted $238 million in venture capital investment, a 120% increase over an already impressive last year. Over all of 2007, venture capitalists invested $928 million in 80 deals in entreprenuerial companies based in India. Led by large venture capital investments in marketing/advertising companies, this year promises to be another big year for India's venture capital sector. India has secured its place as a top destination for private equity investment. Last year, for the first time, India surpassed China in terms of the value of private equity deals over a 12-month period. Private equity funds focused in India are expected to raise at least $5 billion in the last two quarters of 2008, more than double the amount raised between June and December of last year. If this prediction comes true, 2008 will be an incredible year for India private equity. Permanent Link: Private Equity India Tags: Private Equity India, India Private Equity, Private Equity in India, Private Equity Investment in India, Private Equity Funds in India, Venture Capital India Link to This Resource: Private Equity India http://privateequityblogger.com/2008/09/private-equity-india_05.html
Private Equity India Private Equity India List of Private Equity Funds in India
I've noticed in the private equity forum and from e-mail questions I have received, that there is a lot of interest on private equity in India. This is certainly warranted, as private equity in India has grown enormously in over the last few years. To address this I am first going to publish a list of private equity funds located in India, courtesy of AltAssets. Tomorrow, I will write an introductory guide to private equity investment in India. Here is the list of private equity funds in India from AltAssets: 227 | P a g e
Aavishkaar India Micro Venture Capital Fund Anandrathi Real Estate Fund Avendus Advisors Pvt. Ltd. Baring Private Equity Partners India Ltd. BTS Investment Advisors Pvt. Ltd. Canbank Venture Capital Fund Limited ChrysCapital Citi Alternative Investments Evolvence Advisory Services Pvt. Ltd. Frontline Strategy Gaja Capital Partners GVFL Ltd. GW Capital Pvt. Ltd. HSBC Private Equity Management Mauritius Ltd ICICI Venture Funds Management ICOS Capital IDFC Private Equity IFCI Venture Capital Funds Ltd IL&FS Venture Corporation Ltd. India Value Fund Indian Angel Network Indian Direct Equity Advisors Infinity Venture Fund Jina Ventures JumpStartUp Karnataka Asset Management Company Pvt.Ltd. Kerala Venture Capital Fund (P) Ltd. 228 | P a g e
Kotak Private Equity Group Mefcom Capital Markets Ltd. New Path Ventures Passion Fund PSi Inc. Punjab Venture Capital Ltd. Rabo India Finance Rajasthan Venture Capital Fund (RVCF) Redclays Capital - Private Equity and Venture Capital SAIF Partners Samara Capital Sicom Venture SIDBI Venture Capital Limited (SVCL) Siemens Venture Capital State Street Global Advisors India Techcap India The Carlyle Group Dubai The View Group Tishman Speyer TPG UTI Ventures Ventureast Walden Nikko India Management Co. Ltd. Warburg Pincus India Pvt. Ltd. India Private Equity Firms 2i Capital Fire Capital 229 | P a g e
Permanent Link: Private Equity India Funds List Tags: Private Equity India. According to a Private Equity Analyst study. the salaries for North American private equity professionals rose by 5. which sometimes lasts at least 10 years.3%.000 in 2006. Private Equity Funds List in India. Private Equity Funds List. to $375.000 rose to $200.000 from $315. List of Private Equity Funds in India. 230 | P a g e . The study is not completely optimistic--the marked decline in deals is worrying many in the industry for instance--but in a struggling economy the study reveals good news for those considering entering private equity and those currently working at a private equity firm. there is still the remaining factor of carried interest which brings the total to $401.html Private Equity Compensation Private Equity Compensation Private Equity Compensation Defies Credit Crunch The number of private equity deals have declined as the credit crunch hurts the financial industry. but in terms of compensation and hiring private equity has remained strong in 2007. Private Equity Investment in India.If you have a fund to add to the list or there is another region which you would like me to look into just send a quick e-mail to Theo@peblogger. Hiring increased too. If you thought that was high. This compares pretty impressively to the investment banks that have been cutting staff with mass lay-offs.com.000.com/2008/09/private-equity-india. of the 167 private equity firms surveyed. When you factor in bonuses.000. Private equity firms receive notoriously high management fees that are paid throughout the life of the deal. Also. from $190. So why is the private equity industry surviving while other financial sectors are making huge cuts in staff and salaries? A major factor may be the cushion of management fees. Other optimistic notes from the study are that of the participating private equity firms only 5% expect to diminish in size. compensation consultants expect the pay for entry-level positions to stay the same or even rise in 2008. private equity compensation increased 25%. Private Equity. India Private Equity Funds Link to This Resource: Private Equity India http://privateequityblogger. the majority of the firms responded that they were adding staff more than reducing.
IFA Life. private equity salary data Link to This Resource: Private Equity Compensation http://privateequityblogger. private equity salaries. The Private Equity Forum is connected to the 9. too. private equity income. While a large part of securing an interview at a private equity or venture capital firm is having the proper credentials (i. This website's sole purpose is to connect professionals and make business contacts. 231 | P a g e . There are also many forums exclusive to venture capital or angel investing.com: Another networking website that is Facebook. private equity money. Facebook. so having an updated and active LinkedIn account is an easy networking tool that often leads to great contacts. IFA Life: A reader suggested another networking tool. Join forums: The internet provides so many opportunities to connect with other private equity and venture capital industry contacts.Source: WSJ and PEA Permanent Link: Private Equity Compensation Tags: Private equity compensation. and forums are great for this.e.K. Make sure that your profile is professional and shows all your skills and past work experience. By putting in some extra work networking you make a contact who leads you to a job opening.a new professional networking website for financial planners and investment professionals. like connecting with college friends. Join the private equity linkedin group. The site is predominantly in the U. if you haven't already. No matter your field. or you may just learn valuable tips from other private equity or venture capital professionals. another important aspect is networking. then make sure there are no comments or photos on your profile that you wouldn't be comfortable with a potential employer seeing.000+ member private equity group and is a good place to ask questions and meet people. Although Facebook has a more social networking focus. many business people use this site as a tool for professional networking.S.com/2008/09/private-equity-compensation. MBA and financial work experience). A photo will lend some personality to your profile too. private equity compensation report.html Professional Networking Professional Networking Private Equity and Venture Capital Networking Tips The private equity job market is very competitive and it may be difficult to break into the industry. but is expanding to the U. networking is critical for advancing in the financial world. Here are a few basic networking opportunities you may have overlooked: Linkedin. Word of caution: if you use Facebook for its social features.com: The biggest and probably the best networking website is LinkedIn.
Private equity jobs are typically separated by primary areas: number crunching.Attend events: I live in New York City so there is always a networking event or private equity lecture to attend. appraising and executing deals. "The Number Crunchers" The number crunching area consists of the junior staff. private equity networking opportunities. Sites like this. Also.com/2008/09/networking. here is a brief introduction.com Permalink: Professional Networking Tags: Private equity networking. These people. how to network in private equity Link to This Resource: Professional Networking http://privateequityblogger. The number crunchers look at the accounts of the companies that the fund is considering and constructing financial models for calculating how much these companies are worth.html Private Equity Positions Private Equity Positions Positions in Private Equity If you're considering applying for a job in private equity. Appraising and Executing Deals After the number crunchers finish calculating and analyzing the investments. sometimes called the principals. private equity. are great for keeping up with events. the next set of people take over the deal. especially areas with major financial sectors like Chicago and Boston. and originating deals. This goes for most major cities too. These employees are usually offered short two year contracts and their main duty is to analyze potential investments. These are some basic but great opportunities to make other contacts and become more familiar with the private equity industry. If these people decide that the investment works for the private equity firm then they help execute the deal. check out online conferences "webinars" that are often led by well-known speakers. If you have any suggestions for other professional networking opportunities please send an email to Theo@peblogger. "Originators" 232 | P a g e . take the information that the number crunchers gathered and decide whether the investment is beneficial to the firm and what the price should be set at. professional networking. networking private equity.
This leads to the "originators" who are more senior than those who appraise the deals. These people are typically the fund's partners and their responsibility is to oversee the deal while it is being executed. Their duties also include originating new deals by finding more companies to invest in. These people use their senior status to build relationships with top executives in companies, possibly using that connection to coordinate a deal later. After the deal has been completed, the principals and partners nurture the company. This nurturing role may involve a position on the company board and advising a strategy that will lead to increased profits. Necessary Skills for a Job in Private Equity In order to be seriously considered at any position in a private equity firm, you generally need an excellent academic record--usually an MBA from a quality university. In addition, many recruiters want professional experience of at least a year in investment banking or a relevant industry. The salaries in the private equity industry ranges by position, but data suggests that private equity compensation is exceptionally high. Permanent Link: Private Equity Positions Tags: Private equity jobs, jobs in private equity, private equity careers, careers in private equity Link to This Resource: Private Equity Positions http://privateequityblogger.com/2008/09/private-equity-jobs.html
Hedge Fund List Hedge Fund List Hedge Fund List - By State
The lines between hedge funds and private equity firms is blurring. Many hedge funds invest along side or even into private equity firms and many investment firms offer hybrid private equity - hedge fund portfolios. Thanks to a member of one of our online networking groups I recently found this list of hedge funds by state. This is list is not complete and the industry changes so rapidly it is surely becoming more outdated each month, that said it is hard to find this information online so hopefully this may help you. ___________________________ CT: Badon Hill Asset Management, L.L.C. 233 | P a g e
Basso Capital Management, L.P. Blue Orchid Capital Bridgewater Associates Inc DCF Capital Diamondback Advisors CT, LLC Dune Partners, L.L.C. Fossel Capital JD Capital Management, L.L.C. Kideral International Lone Pine Capital, L.L.C. Monitor Capital, Inc. Newbury Partners, L.L.C. Norfolk Markets North Sound Capital Norton Capital Management, LLC P.A.W. Partners Pirate Capital, L.L.C. Renaissance Investors, LLC SAC Capital Advisors, L.L.C. Sageview Capital, L.L.C. Silvermine Partners, L.L.C. Sky Investments SkyWorks Leasing, LLC Strategic Value Partners, L.L.C. The Patriot Group, L.L.C. Tontine Capital Partners, L.P. Tudor Investment Corporation Viking Global Investors, L.P. Weston Capital Management, L.L.C. XT Capital Partners, L.L.C. -----------------------------------------------------------------IL: Balyasny Asset Management Citadel Investment Group, L.L.C. Eagle Marekt Makers Evanston Capital Management, L.L.C. Frontaura Capital, LLC Group One Trading, L.P. Ritchie Captial Sanborn & Kilcollin Partners, L.L.C. Sidley Austin, L.L.P. -------------------------------------------------------------------MA: Adamas Partners, L.L.C. 234 | P a g e
Babson Capital Management, L.L.C. Cambridge Place Investment Management, L.L.P. Convexity Capital Management, L.P. FDO Partners, L.L.C. Fidelity Investments Fred C. Church Inc. Fresco Faux Finishing FTN Midwest Securities Highland Capital Partners IBS Capital Corporation Kendall Investments, L.L.C. North Bay Capital Management, L.P. Nyes Ledge Capital Management O.A.K. Associates Old Mutual Asset Management Pine Cobble Capital Robeco Boston Partners Asset Management Sankaty Advisors, L.L.C. Sirios Capital Management, L.P. Sonar Capital Management, L.L.C. TA Associates Thomas H. Lee Partners, LP Tidal Capital Management, L.L.C. Tudor Investment Corporation Wellington Management Co., L.L.P. ------------------------------------------------------------------NY: Apollo Management, L.P. Arden Asset Management, L.L.C. Aristeia Capital Arnhold & S. Bleichroeder Advisers, L.L.C. Arnold and Porter, L.L.P. Asset Alliance Auda Advisor Associates, L.L.C. Avenue Capital Group Barclays Capital BlueBay Asset Management, Plc BlueMountain Capital Mngmt, L.P. Cantillon Capital Management, L.L.C. Cantor, Weiss & Wurm Asset Management Capital Z Investment Partners Capra Asset Management, Inc. Caxton Associates, L.L.C. Cerberus Capital Management, L.P. Clear Asset Management, Inc. 235 | P a g e
Clearpoint Learning Systems Copper Arch Capital, L.L.C. Corbin Capital Partners D. E. Shaw and Company, L.P. D.B. Zwirn & Co., L.P. DiMaio Ahmad Capital Drake Management, L.L.C. Elliott Associates, L.P. Eminence Capital Endeavor Talent Agency Evercore Partners Fairfield Greenwich Advisors, L.L.C. Fortress Investment Group Fursa Alternative Strategies, L.L.C. Glenrock Asset Management GLG Partners Golden Tree InSite Partners GoldenTree Asset Management Gravity Capital Management, L.L.C. Greenlight Capital, Inc. Group One Trading, L.P. GSCP (NJ), L.P. GSO Capital Partners Harvest Volatility Management, LLC HBK Capital Management HealthCor Management HFR Asset Management Highbridge Capital Management Icahn & Co. Icahn Management, L.P. IntroPLAY, L.L.C. J. J. Newport Group, Inc. JL Advisors, L.L.C. Kepler Asset Management Kingdom Ridge Capital, LLC Kingdon Capital Management, L.L.C. Knight Capital Group Knott Partners, L.P. Magnetar Capital MAK Capital Marathon Asset Management, L.L.C. Maverick Capital, Ltd. MFP Investors, LLC Miura Global Partners Narragansett Asset Management, L.L.C. North Sea Capital Management 236 | P a g e
North Shore Asset Management, L.L.C. Oaktree Capital Management, L.L.C. Och-Ziff Capital Octavian Advisors, L.P. Olympia Capital Management OpHedge Investment Services Ospraie Advisors Ospraie Management LLC Penson GHCO Pequot Capital Management, Inc. Perella Weinberg Partners Phoenix Partners Group PixiesDidIt!, Inc. PV Capital Management Quest Select Capital Management RBC Capital Markets Rosenblum Silverman Sutton NY, Inc. Royal Capital Management, L.L.C. SAB Capital Management, L.P. Sandell Asset Management Corp. Schottenfeld Qualified Assoc L.P. Seminole Management Company, Inc. Sigam Capital Management, LLC Silver Creek Capital Management, L.L.C. Sire Management Corporation Spring Mountain Capital Steadfast Financial, L.L.C. Straus Asset Management, L.L.C. Taconic Capital Advisors, L.P. Tailwind Capital Partners, L.L.C. TCS Capital Management, L.L.C. The Archstone Partnerships Third Point Management Company TM Capital Management, Inc. TPG Capital Trafelet & Company, L.L.C. Trillium Trading, L.L.C. Trivium Capital Management Two Sigma Investments, L.L.C. Tyndall Management, L.L.P. Tyndall Management, L.L.P. Union Bancaire Private Asset Mngmt Voyager Management, L.L.C. W. R. Hambrecht & Co. West Side Advisors York Capital Management 237 | P a g e
Permanent Link: Hedge Fund List Tags: Hedge Fund list, List of hedge funds, top 100 hedge fund managers list, alpha hedge fund list, free hedge fund list, hedge fund list 100, Hedge Fund Manager list, Hedge Fund of Funds List, List of hedge fund firms, list of hedge fund manager names Link to This Resource: Hedge Fund List http://privateequityblogger.com/2008/08/hedge-fund-list.html
Management Buyout Management Buyout
Financing a Management Buyout
A management buyout is when a company's existing managers purchase a large or majority share in the company. This form of acquisition requires the managers of the firm to use a large amount of money, often this capital comes from private equity investors. In return for providing the capital, private equity investors receive shares of the company which will hopefully increase in value under the management buyout. Managers will take the company private to realize the company's potential performance and possibly attract public investors later. This buyout may be leveraged using debt or directly through the investors' capital. The managers contribute too. Although they do not have the means that investors have, managers invest what they can to purchase a small share of the company. The terms of the contract varies between buyouts but the investors usually develop an exit strategy of 3-5 years. The primary goal is the same for managers and investors: to increase profitability. Management buyouts can be risky for investors and the managers too but if it is successful both parties often net huge gains. Permanent Link: Management Buyouts Tags: Management buyouts, leveraged buyouts, private equity management buyouts, private equity buyouts, private management buyouts Link to This Resource: Management Buyout http://privateequityblogger.com/2008/08/management-buyout.html
Venture Capital News Venture Capital News 238 | P a g e
venture capital IPOs. This brief venture capital news video from CNBC discusses this decline with the president of the National Venture Capital Association: Venture Capital Fallout Permanent Link: Venture Capital News Tags: Venture capital news. The following two part video explains the developments that are taking place in Africa and what to expect in the future: Part One: Part Two: 239 | P a g e . venture capital industry news Link to This Resource: Venture Capital News http://privateequityblogger.html Private Equity Africa Private Equity Africa Private Equity Investment in Africa Video Africa is developing good governance and bolstering financial institutions to attract private equity investment. However. The number of venture-backed companies reaching the initial public offering stage is the lowest it has been since 2003. There are obvious problems preventing private equity in Africa most importantly stability. Venture capital initial public offerings.com/2008/08/venture-capital-news. Until Africa can modernize its financial sectors with heightened regulation and political reform. private investment has increased especially this decade with Asian investment strengthening the continent's economy.Venture Capital Video on the Future of Venture Capital The venture capital industry has suffered noticeably in the first half of this year. private equity investment will realize its potential.
For the full article click here. Private equity risk management. Large private equity firms like the Carlyle Group and Citigroup are reaching out to risk management firms in hopes of curbing private equity risk and receiving a third party assessment of the private equity firm's risk management.html Private Equity China Private Equity China Private Equity in China Video 240 | P a g e . This new concentration on risk management is partly a response to this year's financial instability. private equity groups risk. Private Equity. Private Equity in Africa Link to This Resource: Private Equity Africa http://privateequityblogger. private equity.Permanent Link: Private Equity Africa Tags: Private Equity Africa.com/2008/08/private-equity-risk. private equity firms risk management Link to This Resource: Private Equity Risk http://privateequityblogger.html Private Equity Risk Private Equity Risk Private Equity Focuses on Risk Management According to an article today from the Financial Times. private equity firms are focusing more on risk management and regulatory measures. Private Equity Investment in Africa. Permanent Link: Private Equity Risk Tags: Private Equity Risk. Private Equity Africa Investment.com/2008/08/private-equity-africa.
Permanent Link: Private Equity Industry Tags: Private Equity Industry. As I've mentioned previously. private equity has made attempts to improve its relationship with the media and its critics but more needs to be done to repair its poor public image. To do this private equity groups must appeal to more than their investors by reaching out to labor unions. a report on private equity revealed that in the majority of acquisitions by private equity groups employment in the company actually rises.html Private Equity Industry Private Equity Industry How to Improve the Private Equity Industry's Reputation The private equity industry has suffered from a negative public perception largely stemming from a lack of transparency. private equity reputation. China Private Equity.com/2008/08/private-equity-china. The annual Davos World Economic Forum discussed how the private equity industry could improve their reputation.China's economy has grown impressively this decade and private equity firms are entering the region hoping to capitalize on the economic growth. The following video is an introduction to private equity in China from the Berkeley China Initiative. Focusing on Benefits: Private equity has been charged with primarily focusing on profits while the public suffers. Private Equity Firms in Asia. This segment examines the sources of private equity as well as the increasing size of private equity deals in China. Improving the private equity industry. private equity public relations. Recently. private equity pr. Asia Private Equity. Opening to the Media: The media has played a major role in portraying the private equity industry as secretive and untrustworthy. public groups and communities effected by deals. Reports and data like this should be used by private equity groups to combat criticism. private equity industry and the public 241 | P a g e . Despite some highly publicized negatives. Private Equity Videos Link to This Resource: Private Equity China http://privateequityblogger. Private Equity in China. Permanent Link: Private Equity China Tags: Private Equity Asia. the private equity industry has positive effects that it should capitalize on to improve its public image. This stereotype is furthered by the private equity industry's reluctance to respond with openness toward media. here are some of the solutions offered by the co-founder of the Carlyle Group David Rubenstein: Improving Transparency: The most important change that the private equity industry must address is the lack of transparency over how the industry operates.
This arrangement is often very beneficial for the manager and serves as a method for investors to motivate and reward good performance by the general partners.html Carried Interest Carried Interest Private Equity Carried Interest Carried interest is the percentage of profits that the general partners of a private equity fund receive as an incentive for good performance. the limited partners. The carried interest compensation typically ranges from 20-30% of profits which is a substantial amount of money for the fund's investors.html Theo O'Brien 242 | P a g e . provide most of the funding capital typically 90-97%. The change would raise taxes for carried interest from the current 15% to as high as 35%. carried interest is taxed as long-term capital gains but advocates for private equity tax reform would like carried interest to be taxed as ordinary income.com/2008/08/carried-interest. Private Equity Carried Interest A private equity fund is a partnership created to obtain a significant (often majority) stake in an expanding or underperforming company. carried interest in private equity. carried interest.com/2008/08/private-equity-industry_03. The remaining funding of 3-10% is provided by the general partners of the fund who in turn receive management fees.Link to This Resource: Private Equity Industry http://privateequityblogger. The most recent attempt to alter the taxation of carried interest was proposed by Republican Senator Charles Grassley but private equity advocates challenged the proposal and it is unlikely that private equity tax reform will occur anytime soon. carried interest tax Link to This Resource: Carried Interest http://privateequityblogger. Currently. what is carried interest. Permanent Link: Carried Interest Tags: Private equity carried interest. Carried Interest Tax There is a large amount of controversy surrounding the taxation of private equity carried interest. private equity carried interest tax. definition carried interest. Outside investors. The typical compensation set up for private equity fund managers is 1-2% of the total fund assets and the carried interest.
com/2008/08/theo-obrien. Thanks for visiting. The major growth in the German technology sector necessitated new forms of financing. 243 | P a g e .html Germany Venture Capital Germany Venture Capital New Private Equity Report on Germany Venture Capital German private equity hit its stride in 2000 when the number of new private investments jumped from about €500m to €4. the United States continues to be the favored location for venture capitalists.com Author My name is Theo O'Brien and I'm the author of PrivateEquityBlogger.com. Germany was awarded the European Venture Capital success story of 2000 for its remarkable growth.com. German venture capital volume has remained strong increasing while the rest of Europe and the UK venture investment has declined.5billion. The surveyed limited partners rank Germany second globally on their venture wishlists.Theo O'Brien PrivateEquityBlogger. Much of this success can be attributed to venture capital investment. Germany earned this high spot by impressing investors with clean energy and medical devices and equipment. venture capital funding provided the necessary capital and reaped huge profits from technology investments. Permanent Link: Theo O'Brien Link to This Resource: Theo O'Brien http://privateequityblogger. from 2006 to 2008 the UK has had a higher venture capital investment volume but that lead seems to be slipping. To contact me please send an email to Theo@PEBlogger. I am an investment research professional based in New York City and write daily articles here on various topics related to private equity. Germany is one of the most attractive locations for venture capital firms according to a new survey conducted by the National Venture Capital Association. While the NVCA survey shows Germany ahead of the UK.
Private equity firm managers have spread the carried interest--the profit private equity firms receive from buyout deals--among the lower-level positions in firms. Private equity recruiters have responded to hedge fund competition by increasing incentives offered to MBAs. firm managers' salaries only increased by 9. German venture capital has stayed strong through the worst times of the economic slowdown and the horizon appears bright as Germany attracts global venture capital investment through clean technologies and an impressive medical sector. Germany Private Equity Link to This Resource: Germany Venture Capital http://privateequityblogger. venture capital in Germany. In comparison to the 29% pay increase from 2006 to 2007.3%. venture capital firms are struggling in exit strategies so fewer venture capital-backed companies are reaching IPO‘s. That salary increased 29% from the previous year. The lowest-level employees at private equity firms earn on average $215. venture capital outlook in Germany. German venture capital. Permanent Link: Germany Venture Capital Tags: Germany venture capital. For the full German Private Equity report and more reports from private equity insight click here.com/2008/08/germany-venture-capital.000 a year. rewarding atmosphere for bright young talent. it will certainly remain a top destination for young MBAs. A story by the Wall Street Journal suggests that the biggest incentive is monetary. WSJ source For more on private equity MBAs see the list of The Top Private Equity Education Programs 244 | P a g e . The emergence of hedge funds may also benefit MBAs breaking into the private equity industry by providing competition for buyout firms. hoping to retain their access to the elite recruitment pool.As larger buyout deals slow following the global credit crunch many limited partners have turned to smaller venture capital deals. so MBAs can expect to begin their private equity career earning a high three figure salary. German private equity. Although some predict a decline in private equity. However the credit crunch has also presented problems for venture capital. The emerging ―cleantech‖ sector is expected to provide many new investment opportunities to counter most adverse effects from the credit crunch.html Private Equity MBA Private Equity MBA Private Equity is a Top Destination for MBAs Private equity is a top destination for business school graduates because it carries some great benefits and private equity is a challenging. venture capital firms in Germany.
MBA graduates. these 30 firms are primed to continue growing at a tremendous rate and influencing real estate markets around the world." Here is the list of the largest private equity real estate firms: The Blackstone Group Morgan Stanley Real Estate Tishman Speyer Goldman Sachs Real Estate Principal Investment Area Colony Capital Lehman Brothers Real Estate The Carlyle Group ProLogis Beacon Capital Partners LaSalle Investment Management MGPA AEW 245 | P a g e . Private equity MBAs. private equity business school Link to This Resource: Private Equity MBA http://privateequityblogger. private equity jobs.Permanent Link: Private Equity MBA Tags: Private equity MBA.com/2008/08/private-equity-mba_18. The Blackstone Group and Morgan Stanley Real Estate topped the list. the top thirty private equity firms investing in real estate.html Private Equity Real Estate Private Equity Real Estate List of Largest Private Equity Real Estate Firms The Private Equity Real Estate Magazine reveals the PERE 30. together the two firms raised more than $36 billion in the past five years. The combined total raised by all thirty private equity firms was $190 billion over the last five years. The associate editor of the PERE Magazine commented "With real estate growing rapidly as an institutional asset class.
Part 3 246 | P a g e . top real estate private equity Link to This Resource: Private Equity Real Estate http://privateequityblogger. list of private equity firms. list of private equity real estate. top private equity real estate firms.com/2008/08/private-equity-real-estate_17. List of private equity real estate firms. top private equity.Rockpoint Group Apollo Real Estate Advisors CB Richard Ellis Investors RREEF Alternative Investments Grove International Partners Shorenstein Properties The JBG Companies Citigroup Property Investors (CPI) Capital Partners JER Partners Walton Street Capital Heitman Aetos Capital KK daVinci Lubert-Adler Starwood Capital Fortress Investment Group DLJ Real Estate Capital Partners RLJ Development Permanent Link: Private Equity Real Estate List Tags: Private Equity Real Estate.html Angel Investing Angel Investing Angel Investing Video.
from secondary firms and even from limited partners. The current global crisis is.html Private Equity Conference Private Equity Conference Updated Schedule of Private Equity Conferences Private Equity Analyst is the Dow Jones' monthly newsletter on private equity. from venture firms. Permanent Link: Angel Investing Video. unprecendented. Yes. of course. but the past is one reason why the private equity industry. late '80s.Part 3 Tags: Angel investors.com/2008/08/angel-investing_16. All this comes at a pretty high price tag of $2. angel investors videos. The best returns often come during the worst of times. The panel gives some great tips on how to separate your proposal from others and what mistakes that many startup companies make. this video is the most important and honest discussion of how to meet and obtain capital from angel investors.595. angel investors funding Link to This Resource: Angel Investing http://privateequityblogger. unlike so many others. The private equity conference is a great place to get to know other private equity professionals and gain insight from distinguished industry leaders like the CEO of the Blackstone Group and venture capital giant David Rimer of Index Ventures. angel investors advice. But just what will prove to be winning bets? Will buyout firms find success in doing deals without leverage? Will venture capital firms generate 247 | P a g e . They know that out of the troubles of the '70s. This angel investing video is a bit longer (30 mins) and the panel of angel investors share practical tips for startup companies seeking angel capital. but they also feel that there will be incredible opportunities as well. It is a phrase that you'll hear from buyout firms. and in September it will be hosting industry leaders for a private equity conference. Private Equity Conference 2009 The Dow Jones' Private Equity Analyst Conference 2009 takes place September 16-17. and the collapse of the tech bubble have come deals that have made reputations and paved the way for big returns. In my opinion.Here is the last angel investing video in the series--if you missed them here is part 1 and part 2. 2009 at the Waldorf in New York City. but this conference is a smart investment for private equity professionals who can afford it. big and small. they know keeping companies alive will be difficult. is looking at the situation optimistically rather than pessimistically.
Value-added improvements range from solving management/operational problems. or solving capital constraints. Value Added: This strategy usually generates higher returns than Core-Plus. The idea is to buy property. list of private equity conferences. private equity conferences.com/2008/08/private-equity-conference. private equity analyst. with a small amount requiring some form of enhancement. make some improvement on it to raise the property's value and then sell it at a higher price than originally purchased. but often lucrative investment area that has become increasingly popular in the last few years. here is an overview of private equity real estate: Private equity real estate is a sometimes risky. Private equity real estate typically involves a private equity firm collecting money from investors to create a private equity fund. Permanent Link: Private Equity Conference Tags: Private equity conference. which then looks for potentially profitable real estate to purchase. 248 | P a g e .html Private Equity Real Estate Private Equity Real Estate Private Equity Investment in Real Estate Private equity investment in real estate has increased in recent years. private equity conference resource. Private equity real estate funds three major investing strategies: Core-Plus: This strategy is generally low risk with low returns. schedule of private equity conferences. --PEA Conference For more information on this private equity conference click here. The Core-Plus strategy involves investing primarily in core properties. PEA conference.green in doing clean-tech deals? Will distressed firms find the right companies to buy? Will limited partners have picked the right managers? The 16th Annual Private Equity Analyst Conference will tackle these questions while also giving attendees insight into what's next for their firm and the industry. The private equity fund creates a portfolio of real estate investments that the fund manager believes will be relatively low-risk while still lucrative. but carries greater risk. Link to This Resource: Private Equity Conference http://privateequityblogger. New York private equity conferences. physical improvements. private equity analyst conference in New York.
Permanent Link: Angel Investors Video. but sometimes the most profitable. Volatility: As recent failures in the housing market demonstrate. Permanent Link: Private Equity Real Estate Tags: Private equity.html Angel Investing Angel Investing Angel Investing Video. Some real estate investments can last more than ten years while the property is improved. private investors real estate. private equity investing in real estate.com/2008/08/private-equity-real-estate.Part 2 Here is the second angel investing video in a series. The opportunistic strategy usually involves investing in properties that require a high degree of improvement and other more risky potentially profitable real estate investments like raw land and niche property sectors. angel investors advice. The private equity real estate industry has increased in size since 2000. angel investors funding Link to This Resource: Angel Investing 249 | P a g e . private equity real estate. private investing real estate. the real estate market is subject to both boom and bust cycles. For investors the real estate market is sometimes incredibly profitable but there is also a high degree of risk as housing prices can fall and the fund can fail. Drawbacks to Private Equity Real Estate High Entry Fee: Due to the substantial amount of capital needed for investing in real estate many funds require very large minimum investments. angel investors videos.Part 2 Tags: Angel investors. This video deals continues where the previous video left off with a panel of angel investors describing the role that angel investors have in the development and expansion of a startup company. private equity investment in real estate. as well as sharing tips for startup companies that want to attract angel investors. While the housing crisis has hurt many in the financial industry it has also led to very cheap real estate that private equity funds are purchasing for huge profits. Low Liquidity: Private investment in real estate requires investors to have limited access to their money because it is locked up in longterm investments.Opportunistic: This approach is generally the riskiest. definition private equity real estate Link to This Resource: Private Equity Real Estate http://privateequityblogger.
The venture capital term sheet is key because it establishes the venture capital firm's involvement in the company and covers the shares and expected returns for the investors.Part 1 This is the first video in a series about angel investing. He says that the most important thing he looks for in a term sheet is some kind of control through either a board position or observer rights. He does not want convertible differed with a discount to the next round because it hopes that the company does not do too well too early. angel investors funding Link to This Resource: Angel Investing http://privateequityblogger. describing the role that angel investors have in the development and expansion of a startup company. talks about the control issue.http://privateequityblogger.com/2008/08/angel-investing. This short venture capital video covers some of what venture capitalists want and do not want in a term sheet: The first speaker. angel investors advice.html Venture Capital Term Sheet Venture Capital Term Sheet What Venture Capital Investors Want in a Term Sheet A term sheet is a document outlining the basic conditions and material guidelines for a business agreement. angel investors videos. A venture capitalist says that valuation is most important because he primarily wants to make good returns on his investments.html Angel Investing Angel Investing Angel Investing Video.Part 1 Tags: Angel investors. an angel investor.com/2008/08/angel-investing_14. angel investing. as well as sharing tips for startup companies that want to attract angel investors. Permanent Link: Angel Investing Video. The second venture capitalist shares a structural problem that he does not want to see in a term sheet. 250 | P a g e .
specifically the buyouts of large companies. Permanent Link: Private Equity Industry Reputation Tags: Private equity.html Private Equity Industry Private Equity Industry The Private Equity Industry's Bad Reputation Private equity is. private equity firms are making an effort to work with the media and explain the private equity process. a private industry that operates outside the traditional. During the reorganization and restructuring some jobs are lost. private equity industry. A private equity firm may cease control of an underperforming company to help it realize its full profit potential. by definition. So why does private equity have such a bad reputation? Key factors that contribute to private equity's bad reputation: Size: The relatively new development of private equity. The huge impact that the private equity industry has on the financial market. venture capitalists discuss term sheet Link to This Resource: Venture Capital Term Sheet http://privateequityblogger. private equity outlook 251 | P a g e . the media struggled to define an industry that few really understood. Now. Then. boosting employment. public relations. Media: Private equity enjoyed little attention from the media while private equity groups made smaller deals. venture capital investors. venture capital terms. private equity public view. and more recent high-profile buyouts have caused concern outside the industry and led calls for greater transparency in private equity. Critics argue that private equity is exclusively motivated by capital and does not contribute locally. when the size of the deals increased and the impact of private equity was realized. public investment system. Public Interest: Private equity is a global industry so there is less involvement at the local level.com/2008/08/venture-capital-term-sheet. but according to a recent study private equity firms often create more jobs.Permanent Link: Venture Capital Term Sheet Tags: Venture capital. has caused much public concern because the private equity industry is less than transparent but private equity greatly effects financial markets. venture capital term sheet. Employment: There is a belief that when private equity firms takeover companies jobs are lost. The substantial inflow of foreign capital to private equity funds does not help this image. VC term sheet. private equity reputation. and therefore a stigma is attached to private equity that it operates outside the public interest.
They'll call into the meetings. Having too many founders on the board is bad too. No laptops and no blackberries other than the laptop that drives the presentation if one is needed. You want a diverse set of people on your board. Have at least one and ideally two industry insiders on the board who are independent of the founders and the VCs. Bring the senior management to the board meetings. They should know the board and the board should know them. And that sucks. but the benefit of having founders on the board vastly outweighs any downside in my mind. Avoid too many board members who live elsewhere. Many VCs like to move the founders out of the way. Trust me. Fred Wilson shares some great tips on building a good early stage company board: Have at least one founder on the board. They think they will be difficult and meddle. That's always a risk. Do the meetings first thing in the morning when people are fresh. They should be local so they come to the meetings.Link to This Resource: Private Equity Industry http://privateequityblogger.html Venture Capital Board Venture Capital Board How to Build a Good Early Stage Board Building an effective company board is crucial. They will come to the meetings. Local board members are better. 252 | P a g e . They should be mentors to the CEO.com/2008/08/private-equity-industry. Keep the number of VCs on the board to two or three. They should bring operating experience. not any one concentrated group. especially for early stage development. The number of VCs on the board is in inverse proportion to the success of the deal.
com/2008/08/building-good-board. (A VC) Permanent Link: Venture Capital Board Tags:Venture capital board. private equity is about who you know. Don't bring senior management to these dinners. Two insiders. forum on private equity Link to This Resource: Private Equity Forum http://privateequityblogger. People can read. Do spend the meeting reviewing where the business is. and one to two industry people is ideal once the company gets to a certain scale. private equity forums. and what strategic decisions need to be made to get there. Building a Good Early Stage Board. Building a Company Board. private equity. expect that they will. where it needs to go.html 253 | P a g e . Remember that the board works for the Company as much as the management works for the board.Try to do a dinner the night before at least four times a year with all the directors attending. The private equity forum was created by the private equity investment group and is superior--in terms of updating and membership--to any other private equity forums that I've found. Five is ideal in my experience but sometimes you need seven to get the right diversity. Do not spend the meeting going through the materials slide by slide. They should be for board bonding which is key to a well functioning board. Permanent Link: Private Equity Forum Tags: Private equity forum. Always send the agenda and board materials at least one day in advance of the meeting and expect/demand that the members read it before coming to the meeting. Expect board members to do what you need from them and manage them to make sure they do. Build a Early Stage Board Link to This Resource: Venture Capital Board http://privateequityblogger.com/2008/08/private-equity-forum. That's why a private equity forum is such a great resource for private equity professionals hoping to meet recruiters. Keep your board to seven members or less. trade strategies and build contacts.html Private Equity Forum Private Equity Forum New Professional Resource: Private Equity Forum As I've emphasized in several previous posts. one to three VCs.
Private Equity Job Listings.com/2008/08/venture-capital-fundraising-job-open. Venture Capital Marketing.com/2008/08/private-equity-jobs-new-york-boston-sf. Venture Capital Sales.html Private Equity Jobs | New York | Boston | SF | Chicago | London and more Private Equity Jobs Private Equity Jobs Our team is now starting to publish select private equity jobs which are open within the industry. Entry Level Private Equity Job Link to This Resource: Private Equity Jobs | New York | Boston | SF | Chicago | London and more http://privateequityblogger. Capital Raising for Venture Capital Link to This Resource: Venture Capital Fundraising Job | Open Position http://privateequityblogger. Private Equity Positions. Venture Capital Fundraising Jobs. Jobs in Private Equity.Venture Capital Fundraising Job | Open Position Venture Capital Fundraising Open VC Fundraising Position This position has been closed. Below please find a link to our first listing to be published: Venture Capital Fundraising Permanent Link: Private Equity Jobs Tags: Private Equity Jobs. Private Equity Job Postings. Venture Capital. Private Equity Job. We see this as both a service to private equity professionals who may consider a move and to firms who are looking to find those individuals with relevant work experience.html Mezzanine Financing Mezzanine Financing Mezzanine Financing Booms During Credit Crunch 254 | P a g e . Tags: Venture Capital Fundraising.
It's all about who you know. because no matter which aspect you are involved in so much of the work is personal. Permanent Link: Mezzanine Financing Booms Tags: Mezzanine financing. Networking is an especially important for private equity. this has formed a big capital gap for middle-market companies.When you're talking to other professionals you don't want to complain about your job or talk about the least attractive aspects of it. private equity Link to This Resource: Mezzanine Financing http://privateequityblogger. mezzanine financing loans. mezzanine loans. mezzanine debt. Building relationships that benefit both parties will ultimately reward you in return. mezzanine financing-focused private equity groups have benefited at the banking industry's expense. The failures of many U.S. In the first half of 2007 mezzanine funds raised $2.3 billion.com/2008/08/mezzanine-financing. 255 | P a g e . According to a new report. mezzanine. banks has contributed to mezzanine financing replacing traditional sources of capital for an increasing number of midmarket firms. Many middle-market firms have responded by seeking mezzanine financing. So here are some basic but helpful private equity networking tips. whether it is finding potential investors or meeting entrepreneurs. Mezzanine loans have an unusually high rate of return to counter the inherent risk to investors.Are you someone who gives help or advice for the sake of helping out another professional or are you someone who looks only to advance yourself? If you are greedy and care only for your personal success you will come off as such a person and people will not want to do business with you. A major result of the credit crunch is the reigning in of bank loans. Mezzanine financing is the use of short-term loans provided by private equity firms.html Private Equity Networking Private Equity Networking Tips on How to Network In Private Equity These are some of my favorite more general private equity networking tips. in the first half of 2008 mezzanine funds raised $24 billion. I'll be adding more in the future: Be aware of the impression you make. Be excited about what you do. You should be excited and therefore exciting to listen to so that your audience wants to know you and possibly even do business with you.Mezzanine financing presents an alternative solution for firms seeking capital that cannot--or choose not to-obtain a bank loan.
com/2008/08/private-equity-networking. Repeat People's First Names. where you are building more personal business relationships. Anticipate rejection and overcome it.. John Doerr Michael Moritz Kleiner Perkins Caufield & Byers Sequoia Capital 256 | P a g e . The Midas List is comprised of venture capitalists who use venture capital to create wealth for their investors and build valuable.everywhere.Of course you understand your job but you have to be able to explain clearly what you do and what makes that interesting.Not everyone is going to be interested. networking in private equity. private equity. Click here for the full list.com.This plays to the more personal side of networking.You never know where you are going to meet a contact so bring business cards anywhere you go. tips for private equity networking Link to This Resource: Private Equity Networking http://privateequityblogger. Bring business cards. Permanent Link: Private equity Networking Tags: Private equity networking. I appreciate rejection because then I don't waste my time on someone who isn't really interested so I can find someone who is. These are just a few of my favorite networking tips. Thanks to David Drake of LDJ Capital for this addition. Sometimes first impressions really are everything.. Here are first 10 of the 100 top venture capitalists. Sometimes I find myself making a great contact at a friend's dinner party or sitting next to me on an airplane. private equity networking tips. Top 10 Venture Capitalists in Technology 1 2 L. if you have some other networking tips you'd like to share please send me an email at Theo@peblogger. so take rejection in stride and move on to better prospects. so eloquently and confidently introducing yourself is a crucial aspect of networking.Prepare and practice your self-introduction.html Top Venture Capitalists Top Venture Capitalists The Top Venture Capitalists in Technology The Forbes annual Midas 100 list is the definitive collection of the top venture capitalists focused in technology. enduring companies.
Buyouts 257 | P a g e .Q2 A new report reveals that despite a rough first quarter. this quarter's success is overshadowed by the heavy losses endured last quarter. top tech venture capitalists Link to This Resource: Top Venture Capitalists http://privateequityblogger.html European Private Equity European Private Equity European Private Equity Report. there is hope in the completion of two deals worth in excess of EUR 2bn during the second quarter.3 4 5 6 7 8 9 10 Ram Shriram David Cheriton Andreas von Bechtolsheim William Ford Lawrence Sonsini Asad Jamal Ronald Conway Navin Chaddha Sherpalo Stanford University Sun Microsystems General Atlantic LLC Wilson Sonsini Goodrich & Rosati ePlanet Ventures Angel investor Mayfield Fund Permanent Link: Top Venture Capitalists Tags: Top venture capitalists. YTD estimates show a drops in volume (9%) and value (53%) from last year. top venture capitalists in technology. top 10 venture capitalists technology. Although the European private equity market is much weaker than last year. However. European private equity recovered in a small way during the second quarter of 2008. The improvements in Q2 are increases in both volume and value of 9% and 15% over the first quarter. top ten venture capitalists.com/2008/08/top-venture-capitalists.
The number of buyouts had a minor increase from 160 to 173 deals. the mid-market sector declined over the second quarter. The value of early stage deals fell 37% from the first quarter. in terms of volume this has been a good year for early stage private equity. Two venture capital professionals discuss what it takes to find receive venture capital and how a startup should look for it. Also. private equity Europe Link to This Resource: European Private Equity http://privateequityblogger. volume dropped 18% and value fell 28%. six of the top ten growth capital transactions were over EUR 100m. On the other hand. 258 | P a g e . Germany and the UK continued to perform very well in the second quarter. private equity in Europe. with only a very slight decrease. Growth capital also improved in terms of volume. This is a 24% increase in volume over last year's first two quarters. Growth Capital Two major deals that were collectively worth EUR 3. Permanent Link: European Private Equity Report Tags: European private equity.5bn led to huge success in growth capital in the last three months. Europe private equity. increasing 17% in the second quarter. the largest bracket has jumped in terms of value by 58% above the first quarter. in terms of value. The growth capital segment increased in terms of value by 238% from EUR 1. The UK remains the leader in European buyouts with 36% of the overall total. Positively.com/2008/08/european-private-equity. at only EUR 278m. It is a different story for early stage.8bn to 6bn. with 89 early stage deals made.The value of buyouts in the second quarter stayed pretty steady remaining above the EUR 24bn level. European private equity report. For the full European Private Equity report and more reports from private equity insight click here. The second quarter exactly mirrored the first. Early Stage So far. this is the lowest total for early stage in 18 months. This is a significant leap from the first quarter's biggest deal of only EUR 88m.html Raising Venture Capital Raising Venture Capital Raising Venture Capital Video This is a really good video on raising venture capital. The trend toward small-cap continues as the volume of deals in the smallest bracket increased 3% and value rose considerably from 143m to EUR 6bn.
Learn from experienced people in the industry. 259 | P a g e . Focus on a simple. raising venture capital Link to This Resource: Raising Venture Capital http://privateequityblogger. venture capital videos.They offer seven tips for entrepreneurs seeking venture capital: Make sure your idea is unique. concise business plan. Be honest and realistic with investors.html Private Equity Associate Private Equity Associate Private Equity Associate Skills A private equity associate is the typical entry-level position for MBA graduates. venture capital finance. but further self-preparation is recommended. research and collect relevant data. raising capital takes time and lots of it. Be patient. from making the deal to operations and even fund raising. Most MBA programs should prepare candidates for this area of the job to a small extent. An associate candidate should be able to perform at all stages of the deal.Firms often specialize in a certain sector or domain. so make sure their style works for you rather than grabbing the first offer. A worthy candidate should possess three core skills: Technical skills. and conduct an extensive analysis on potential investments. An associate's responsibility is to gain expertize in that area. consider costs after first-round financing such as infrastructure and marketing. You will be working with the venture capital firm for a long time. Analytical skills. venture capital funding. Interview the interviewer as much as they interview you. and marketable. Set goals beyond development stage. Permanent Link: Raising Venture Capital Tags: Venture capital.Associates must be able to understand business models.com/2008/08/raising-venture-capital.
Permanent Link: Private Equity Associate Tags: Private Equity Associate. Private equity associates are expected to interpret data rapidly. Private Equity funds investing in Italy.com/2008/08/private-equity-italy. a large part of a private equity associate's job is networking with contacts--from investors to service providers. private equity associate skills. Permanent Link: Private Equity Italy Tags: Private Equity investing in Italy. Banks have reacted by selling off non-majority assets and turning their focus to the businesses which they can control. Interpersonal skills are essential for success in the private equity industry. In what has been a highly profitable country for private equity. Private Equity Investing in Italian Companies. interpret it effectively and come up with a conclusion. Private Equity firms investing in Italy Link to This Resource: Private Equity Italy http://privateequityblogger. Private equity investing in Italy has been on the rise over the last few years after coming to prominence in the mid-90s. After banks gave huge loans without proper due diligence the market for financing in Italy has dried up somewhat and there has been a big push for greater prudence.html Private Equity Italy Private Equity Italy Private Equity Investing in Italy Private equity investing in Italy has fallen from the global credit crunch but private equity deals have continued only with more caution and selectivity. Last year was big for private equity in Italy. Venture capital had a similar effect on Italy's economy. Private equity Italy. but the crisis over bank lending has made many private equity groups wary and reduced the number of deals made this year. private equity careers. private equity.html 260 | P a g e . A report on the Economic Impact of Private Equity and Venture Capital in Italy shows that buyouts have positively effected both revenues and employment in acquired companies. that any associate should possess.com/2008/08/private-equity-associate.Interpersonal skills. it is now more difficult to make big deals but not impossible. Although an associate's duties vary by firm. increasing staff in venture capital-backed companies and dramatically improving performance. finding a job as an associate Link to This Resource: Private Equity Associate http://privateequityblogger.Not only are interpersonal skills important for succeeding in the firm. and the impact has been generally positive.
com/2008/08/private-equity-and-hedge-funds. private equity and hedge funds. the average hedge fund returned 13. hedge funds investing in private equity Link to This Resource: Private Equity and Hedge Funds http://privateequityblogger. In 2006. hedge funds have always tried to capitalize on often risky opportunities to make money. The attraction for hedge funds is the large amount of capital flowing into private equity from institutional investors and the hope that hedge funds can boost performance through buyouts. Private equity groups own many hedge funds and make long-term investments in hedge funds.html Private Equity Asia Private Equity Asia Private Equity Investment in Asia 261 | P a g e . because hedge funds are known for making short investments. the risk may be too great for hedge funds in private equity. Private equity buyouts and even smaller venture capital investments are typically longer investments.9%. However. while the average buyout fund returned 25%. Hedge funds are not afraid of risk so the relationship between private equity and hedge funds will probably only grow stronger in the future. Hedge funds aren't limited to big buyouts. joining with major players in the private equity industry to make large buyout deals. The move to private equity is logical. Another risk is the illiquidity in private equity. they have started lending capital to smaller startups and middle-market firms. private equity. private equity investing in hedge funds.Private Equity and Hedge Funds Private Equity and Hedge Funds How Hedge Funds and Private Equity Connect Private equity and hedge funds have developed a strong relationship benefiting both partners. Permanent Link: Private Equity and Hedge Funds Tags: Hedge funds. Hedge funds have entered the private equity world too. which may be a problem for hedge funds if investors want to cash out their investment.
The struggling U. Despite this. While both countries have some political restraints. something that venture capitalists should consider. venture capital blogs. reform is in process and investment has opened up considerably in recent years. Permanent Link: Private Equity in Asia Tags: Private equity Asia. The boom is led by the emerging economies of China who the IMF predicts to have a 10-11% growth rate and India expected to grow at 8-9%. private equity funds in Asia received three times the capital invested. venture capital outlook Link to This Resource: Venture Capital Bloggers 262 | P a g e . In 2007. Asian Private Equity Industry. Private Equity in Asia. Private Equity. hoping to diversify their portfolio while taking advantage of the vast investment opportunities that the region offers. Asian Private Equity Outlook Source(s): SCM's 2008 report and Center For Asian Private Equity Research Link to This Resource: Private Equity Asia http://privateequityblogger.The incredible economic growth in Asia has attracted many private equity investors. Permanent Link: Venture Capital Bloggers Video Tags: Venture capital video. Some of the venture capital bloggers interviewed say that they strongly prefer a VC firm that blogs because it shows that they are confident and accessible. the Asian markets remain strong ensuring that the region will be a critical location for private equity. Blogging is proving to be less of a casual trend and more of a way to get recognition for your company. venture capital.com/2008/08/private-equity-asia.html Venture Capital Bloggers Venture Capital Bloggers Venture Capital Bloggers Video Here is an interesting video from Innovation Economy about how blogging is effecting venture capital.S. economy has inevitably marked a decline in Asian private equity investment for 2008. The primary draw for private equity investment in Asia is the impressive returns many private equity funds have enjoyed recently.
so be ready.html Venture Capital Interview Questions Venture Capital Job Interview Questions Possible Venture Capital Interview Questions-Part 3 With any interview you want to be prepared. Via Vault.com/2008/07/venture-capital-interview-questions. This is the third and final addition to a series that is split into three areas: expertise. If you missed them. here are some possible questions that you may encounter during a venture capital interview. Where do you want to be in five years? If you are applying pre-MBA be sure to say that you hope to obtain an MBA by that time and be working in the venture capital industry. Getting a Job In Venture Capital Link to This Resource: Venture Capital Interview Questions http://privateequityblogger.html 263 | P a g e . What did you like about your old job and why did you leave? I have been asked this question at every interview I have had. In that case it is usually better to downplay any desire to be an entrepreneur because firms hiring for a partner-track position want someone dedicated exclusively to that position and bringing in a lot of money. here is Part 1 and Part 2. you may come off as a difficult or bitter person.com/2008/07/venture-capital-bloggers.http://privateequityblogger. but it's more tricky if you are trying to get a partner-track position. This is a good opportunity to express your excitement for working in venture capital. it's okay to brag a bit here. Permanent Link: Possible Venture Capital Interview Questions-Part 3 Venture Capital Career Articles: Venture Capital Interview Questions 1 Venture Capital Interview Questions 2 Venture Capital Interview Tags: Venture Capital. and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. but if that doesn't work out you would try elsewhere in private equity or a related field. Would you ever want to be an entrepreneur? If you are pre-MBA it's okay to say yes because it's pretty typical for young professionals to be more open to entrepreneurship. Venture Capital Interview.These questions are more general and apply to most job interviews. Personality questions . Tell how other jobs just weren't satisfying and venture capital seems like the best match for your personality (here's an opportunity to name your strengths). Venture Capital Job Guide. What's the thing you are most proud of? Have some great stories that highlight your abilities. Venture Capital Career. venture capital process and personality. What will you do if you don't get a job here or in the venture capital industry? Express your desire to work within the venture capital industry. Don't complain too much about your past job.
Why do you want to work at a venture capital firm? This may seem obvious: do not mention money or trendiness. Permanent Link: Possible Venture Capital Interview Questions-Part 2 Tags: Venture Capital.html Venture Capital Job Interview Questions 264 | P a g e . you should be open to distant companies as new opportunities for expanding the firm and to be able to capitalize on companies that are being overlooked by your competitors because of the geographical challenge. This is the second part of a series that is split into three parts: expertise. venture capital process and personality. When you evaluate a business plan. Via Vault.Venture Capital Job Interview Questions. It's always better to be honest rather than just feeding the venture capitalists what they wants to hear. Ask about the firm's past investments.Part 2 Venture Capital Job Interview Questions Possible Venture Capital Interview Questions-Part 2 With any interview you want to be prepared. Would you want to invest in companies geographically near or far from our offices? You want to keep the companies you invest in near your venture capital firm's offices so that monitoring and support is easy and available. management staff and performance.com/2008/07/venture-capitla-job-interview-questions. Do you have any questions for me? This is a golden opportunity for you to separate yourself from other candidates.This section allows you to prove that you are a capable candidate for a position in venture capital. How do you value an investment? Say that you would value the investment low as low as possible while still working out a deal with the entrepreneur. Click here for part 1. and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. here are some possible questions that you may encounter during a venture capital interview. Venture Capital Job Guide.Part 2 http://privateequityblogger. maybe why the firm invested in ''x'' investment or why they didn't. so just be excited and well-versed in your favorite area. how well a company is operates under management is a crucial factor to consider for an investor. realistic return that your firm could get from the investment and what is the lowest money you would need to invest to get that ideal return. But although that is the ideal arrangement. Venture Capital Interview. use it well. Getting a Job In Venture Capital Link to This Resource: Venture Capital Job Interview Questions. A big theme for this section is just do your homework. understand the venture capital firm well enough that your questions reflect your knowledge. Venture Capital Career. find out what area really appeals to you then do some research on that area. Process Questions . Be well versed in measuring an investment's worth because it is a critical aspect of venture capital and you can really stand out if you do your homework. Research the history of the venture capital firm including past investments. What investment areas do you find interesting? Be honest. Figure out the ideal. Using several methods you would arrive at a number and begin discussions with the entrepreneur based off that number. what's the most critical element you look for? A pretty safe answer is management. Many of them are able to see through this.
What are the major trends in your industry? .html Raising Money From Angel Investors Raising Money From Angel Investors Raising Money From Angel Investors Video Founder of the New York Angels. Rose begins with a history of angel investors and gives advice on how to successfully pitch to angel investors: Permanent Link: Raising Money From Angel Investors Video Tags: Raising Capital.Start by explaining the big picture. David S. This is the first of a series that is split into three parts: expertise. Permanent Link: Venture Capital Job Interview Questions . Expertise Questions . did you use a certain technology? Be prepared to cover all the past jobs listed on your resume and mention specifics on how each project or company succeeded. Getting a Job In Venture Capital Link to This Resource: Venture Capital Job Interview Questions http://privateequityblogger. talks about raising capital through angel investors.Venture Capital Job Interview Questions Possible Venture Capital Interview Questions-Part 1 With any interview you want to be prepared. Raising Money From Angel Investors. venture capital process and personality.Part 1 Tags: Venture Capital. Rose. Venture Capital Career. Then finish with more detailed and subtle factors effecting the industry that you learned exclusively through your past positions. Venture Capital Interview.com/2008/07/venture-capital-job-interview-questions. What companies in your industry might make interesting investments? This is a pretty standard question for venture capital interviews so be ready with detailed ideas. When you did that project. here are some possible questions that you may encounter during a venture capital interview. Angel Investors. Via Vault.Be prepared to answer questions about your past working experiences and things you learned from those experiences. Can you explain why your former company took the path they did? Give more insight to show that you were actively involved in the company. and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. highlighting the most apparent causes and effects showing that you can explain trends and understand market forces. Capital Sources 265 | P a g e . Sources of Raising Capital. Venture Capital Job Guide.
and $50 million within 5 years? This question must be answered as a "ten" in order to pass the test. 0 meaning that the question does not cover the question at all.html Chartered Alternative Investment Analyst 266 | P a g e . and 10 meaning your company totally applies to the question. Answer the questions on a scale of 0-10.com/2008/07/is-your-company-venture-capital-worthy.Link to This Resource: Raising Money From Angel Investors http://privateequityblogger. Does your company offer a unique service or technology? Can your business carve a considerable market share against existing competitors? How much funding will be put toward research and development and toward reaching the market? What is the ease of the market? What level of customer service with your product need? Who large is the market that your product will serve? Can your product create a gross margin over 50%? Does your management team have the skills and capacity to succeed? Are you and your team committed to your company's success? Can your company achieve $25 million annual revenue within 3 years. how do you know if your company is venture capital worthy? The VC Workbook offers a ten question test to help you figure out if your company is appealing enough for venture capital funds. if you have an 80 or above you pass and you may be a candidate for institutional venture capital backing. Link to This Resource: Is Your Company Venture Capital Worthy? http://privateequityblogger. So. If you did not pass then it may be your company is either not ready for institutional venture capital or you should consider other means of financing like angel investors or public investors. Total your score.html Is Your Company Venture Capital Worthy? The Venture Capital Workbook points out just how little funding actually comes from Institutional Venture Capital Funds compared to how many startups waste their energy only on venture capital.com/2008/07/raising-money-from-angel-investors. if this is not a "ten" then your company may not be suited for institutional venture capital. Note: The test provided by the Venture Capital Workbook is by no means an exact measurement of your company and is only intended to give an idea of your company's chances of obtaining venture capital.
html 267 | P a g e . This is all geared toward developing a better understanding of both the technical and practical aspects of alternative investing. Link to This Resource: Chartered Alternative Investment Analyst http://privateequityblogger. This allows you to captivate your audience while still delivering the details. provide 2 professional references.com/2008/07/chartered-alternative-investment. so adding some style to your slides can go a long way for your presentation. Have Stylish Slides: Image isn't everything. who is also starting a Chartered Hedge Fund Associate program. banking and financial or related fields). private equity.com/2008/07/pitching-venture-capitalists-and-angel. The course is divided into Level 1 and Level 2.html Pitching Venture Capitalists and Angel Investors The initial presentation of your startup company to venture capitalists or angel investors is a crucial aspect in successfully expanding. shares some tips here on passing the CAIA program and a breakdown of how it's scored. Finish Strong: Although many save all those little details and projections for the end. Level 1 focuses more on the analytical aspect of investing and managing. real estate commodities and managed futures. and pay membership dues.) Four years professional experience. it is better to end with a memorable finish that leaves your audience excited about your and your company. Having "sexy" visuals will help keep your audience's attention. in order to become a CAIA the candidate must complete the online Membership Agreement. Change the Pace Throughout: Speed up during the overview and less detailed parts of your presentation but slow down for the more complex and important areas. Another requirement for becoming a CAIA is that the candidate has professional experience (full-time employment within the bank regulatory. Level 2 puts the skills gained from the first level into practice with decision-making exercises and risk management techniques. so don't dull your investors by listing all the benefits of your product.) One year professional experience and a bachelor's degree OR B. The program is administered by the CAIA Association. The Instigator Blog offers 5 quick tips on pitching venture capitalists and angel investors: Briefly Tell Your Story: You will quickly lose your audience's attention if you are not entertaining or if you drone on for too long. Don't Over Emphasize Your Product: Investors are interested in you and your company primarily. but it is something. How to Become a CAIA? To become a CAIA you must satisfy three requirements: Complete the CAIA Program which encompasses hedge funds. Finally.A chartered alternative investment analyst (CAIA) is a designation awarded to qualified investment professionals that pass the CAIA program. Richard Wilson. Link to This Resource: Pitching Venture Capitalists and Angel Investors http://privateequityblogger. This can be either: A. Share your story in an entertaining way about how your company formed and why you need the investors' money.
venture capital firms are flooded with eager business school graduates trying to break into this exciting field. food and organics.The venture capital industry thrives on contacts and referrals. Helpful for companies raising $1 million or less. If possible. use VentureOne and VentureXpert to study the industry and find the most popular and expanding investment sectors. So here is a comprehensive list of angel investor networks separated by geographical location: National Angel Investor Networks Active Capital: Restricted to only entrepreneurs that can sell securities in their company. a good starting point for your quest for capital. Sign your company up before August 1st to be considered for the Fall Venture Fair. Research. education and media.Venture capital job competition is fierce and having some experience in venture capital whether through some related work experience or even a brief internship will boost your chances at being seriously considered. The target industries for entrepreneurs are: energy and environment. but has potential for up to $5 million.Get out there and involved in the industry. Any relevant experience will work in your favor. 268 | P a g e .com/2008/07/venture-capital-interview. Getting an interview at a venture capital firm is difficult. Visit trade shows and forums to get a better grasp on venture capital. and ultimately other factors will decide whether you get the job (like how well you actually perform in the interview and your academic background).Venture Capital Interview Here are some basic tips for scoring an interview with a venture capital firm. Fees: vary by state. also some businesses cannot join based on industry or the company structure. Tribe of Angels: Jewish angel investor and business network. But how can you even get the interview? Here's a few basic tips on getting an interview at a venture capital firm: Network. community and international development. understanding your field is key.000 to $1 million. This angel investor network does not permit companies raising more than $10 million. so make a point of building a large list of contacts. Even if you don't get a job working for these people. Angel investor networks help you court angel investors by specific interests or regions. As some of you may already be aware of. they may know someone hiring. if you don't know where to start. Investors' Circle: A nonprofit angel investor network that focuses on socially responsible businesses. Vault Link to This Resource: Venture Capital Interview http://privateequityblogger. focuses on smaller investments ranging from $50. Experience.html Angel Investor Network Trying to find an angel investor can be difficult. health and wellness.
This is a members-only site where you can view business proposals. as well as clean-tech. Although the Maine Angels tend to invest in local companies they are open to other locations. and there is no cost for submission or screening of business plans. 269 | P a g e . The Angel's Forum invests primarily in consumer products. Also included is three hours of virtual coaching to prepare for the proposal. Maine Angels: This angel network is ideal for companies hoping to raise from $50.The Gathering of Angels: An opportunity for startup companies to show their business proposal to accredited angel investors.000 to $2. but with only about 50 angel investors. The average investment ranges from $250. industrial products. Georgia-based. Vancouver Angel Technology Network: Introduces early stage technology companies to investors. This angel investor network invests in companies based in Texas or willing to relocate to Texas. Band of Angels: Large and established angel network invests in a variety of high-tech companies with over 100 angel investors. Internet and e-commerce. Silicon Garden Angel Investors Network: Invests in East Coast companies with a somewhat smaller than most networks' average investment ranging from $20. Tech Valley Angel Network: This angel investor group invests in early-stage businesses in northeastern New York and New England. Desert Angels: Similarly focused only in Arizona companies.500. California and other close locations. The angel investor network consists of seasoned technology veterans and 30 to 40 usually attend the meetings where companies meet angel investors. enterprise software.000. Washington. Alliance of Angels: Companies must be headquartered in the Pacific Northwest. Six companies present for 20 minutes followed by 2-5 minute Q&A with the investors.000 to $250. Sierra Angels: 50 member strong angel group that focuses on companies in the Northern Sierra region including Nevada. medical devices and service. act smarter. South Angel Investor Network The Network of Business Angels and Investors: Invests in traditional and technology companies. with over 100 angel investors.000. California Angel Investor Network Fast Angels: Tech focused group that invests primarily in Silicon Valley companies. Fee: $2. Northeast Angel Investor Networks Common Angels: Limited to Boston area companies. Motto-"Act Faster.000 to $250. this large angel network favors early-stage software companies. Southwest Angel Investor Networks Arizona Angels: Invests exclusively in Arizona-based companies.000. all located primarily in British Columbia. Houston Angel Network: Nonprofit organization that links startup companies with accredited angel investors.000. Pacific Northwest Angel Investor Networks Portland Angel Network: This network favors early-stage investing and you must be based in Oregon or Clark County." The Angel's Forum: Invests in seed and early-stage business ventures.
eliminating as much risk as possible before investing. Tax and regulation reform have led China's financial growth. The size of investments tend to be smaller in China because the cost for expanding and operating a business is significantly less. Difference of Private Equity in China Whereas American funds tend to invest in middle-market or big businesses. China's private equity funds strongly invest in tech areas like pharmaceuticals. With a thriving economy and a booming financial expansion--thanks to a reformation of laws governing private investment--Americans in private equity hurrying to China is akin to miners in the Gold Rush. while American funds typically avoid the technology sector. Chinese funds look for proven businesses with established positions in the market.html Private Equity in China China has become the new frontier for private equity investors or private equity funds hoping to attract Chinese investors.html Private Equity Gatekeeper Private Equity Gatekeeper What is a Private Equity Gatekeeper 270 | P a g e . also venture capitalists are staking their claim there. Also. agriculture and energy.S.com/2008/07/private-equity-in-china. Link to This Resource: Private Equity in China http://privateequityblogger.If you have any additions please e-mail me at Theo@peblogger. making China a crucial area for American private equity investors. This is because China's entrepreneurs especially distrust investors and are unwilling to give up a majority share to outside investors. Link to This Resource: Angel Investor Network http://privateequityblogger. Instead of the big takeovers that America's private equity is known for. also angel investor networks that would like to provide their own brief summary can contact me.com/2008/07/angel-investor-network. Today. I will look at some of the differences between China's private equity and U. and more changes for China's private equity sector are in the works.com. China's private equity funds are more like late-stage venture capital investors. most funds in China purchase only a minority stake in companies. private equity.
html Apollo Private Equity Apollo Private Equity Private Equity Firm Apollo Management L." Institutional investors may have little or no knowledge of private equity investing or a specific industry sector like energy or technology. 271 | P a g e . These advisers are referred to as "gatekeepers. a placement agent may be used to secure capital from investors. On the general partner side. Some private equity investors turn to third-party investment advisers to connect them with private equity funds. limiter partner advisers. The advisers then issue recommendations to their limited partner clients on which funds they think will provide great returns.Limited partners are always looking for access to the top private equity funds--preferably those with proven returns. limited partner gatekeeper.P.com/2008/06/private-equity-gatekeeper. private equity fundraising. Tags: private equity gatekeeper. Therefore an investor will use a gatekeeper for advice. private investor gatekeeper Link to This Resource: Private Equity Gatekeeper http://privateequityblogger. Private equity gatekeepers know a great deal about the industry and thoroughly track buyout and venture capital funds. private equity third party adviser.
Apollo Management is based in Purchase.01 billion for Countrywide Please see our profiles of other private equity firms from the PE Tracker Tool. as well as founding Apollo Advisers with a number of other partners.P. Its network provides the resources and investment expertise to help entrepreneurs around the world build world-class businesses.Fund VI. Apollo Advisors.' 272 | P a g e . Apollo Private Equity. The firm has struck 76 deals and has posted average annual returns of 34%. "Its most recent fund -. Apollo private equity firms. We will be adding more information about Apollo from the news and private equity reports. BPEP finalized its MBO from parent company ING Group in August. Asia.com/2008/06/apollo-private-equity. the investment teams managing the regional funds have acquired ownership of their respective management companies and operate under the Baring Private Equity International brand. Under the terms of the agreement. India and Spain.Apollo Management L.html Baring Private Equity Baring Private Equity Baring Private Equity Partners Baring Private Equity is a private equity firm that invests globally through regional funds in Russia.P. – has $12 billion in assets. According to AOL Finance.4 billion in funds under management. Apollo Management LP. L. Currently. BPEP has one of the most extensive on-the-ground networks of any international private equity provider. Apollo Capital Management. Tags: Apollo Management. 2004. New York with offices in Los Angeles and London as well. Apollo Management Private Equity Link to This Resource: Apollo Private Equity http://privateequityblogger. Baring Private Equity's website provides the following summary: 'With approximately $3." Apollo has a record of investing in distressed or underperforming companies and improving the value of the investment for resale to another buyer or for a public offering. Resources and articles about Apollo Private Equity Apollo offers $1. Apollo Management has $16 billion in assets under management. was founded by Leon Black in 1990.
For Buyouts. venture capital.58 million) per transaction. small cap buyout. It seeks to invest between €3 million ($3.63 million) per transaction in companies with enterprise value between €100 million ($141. the firm seeks to acquire minority interests in mature companies with investments up to €100 million ($141. Tags: Baring Private Equity.html AXA Private Equity AXA Private Equity AXA Private Equity Group | New York AXA Private Equity is a leading private equity and venture capital firm.09 million). Germany. Milan. mezzanine. It invests up to €40 million ($56. fund-of-fund.45 million) and €2000 million ($2. The private equity firm invests in multiple areas including buyout. recovery or turnarounds.81 million) and €350 million ($445. expansion capital. invests up to €500 million ($707.829.27 million) with fund‘s co-investors.11 million) and €150 million ($190. Baring Private Equity Partners. For small-cap buyouts. For expansion capital. For small-cap leveraged buyouts and expansion capital. and emerging market investments. It typically.45 million) with co-investors. It also invests in listed companies on secondary markets but to a limited extent.. it invests in family-owned companies that requires growth capital or whose capital is being restructured The firm targets companies based in France. the firm acquires controlling interests in companies with enterprise value less than €100 million ($141. Private Equity Baring Russia. Zurich and Vienna. Baring Private Equity Asia Link to This Resource: Baring Private Equity http://privateequityblogger.96 million).com/2008/06/baring-private-equity. Singapore. and Italy. AXA Private Equity Profile. and co-investments in unlisted companies. Private Equity firm AXA Link to This Resource: AXA Private Equity 273 | P a g e . AXA Private Equity Summary The firm‘s direct investments target leveraged buyouts in mid caps and small caps. Tags: AXA Private Equity.[to read more on AXA Private Equity visit BW's Profile] For more Private Equity Tracker Profiles visit this link.08 million). Private Equity Tracker Profile. and a five-year sales target of between €70 million ($89. The firm prefers to acquire a controlling equity stake in its portfolio companies.57 million). AXA has offices in New York. Paris.45 million).For more Private Equity Tracker Profiles visit this link. generating initial sales exceeding €15 million ($19. London. Private Equity Tracker Profile. AXA Banque. the firm seeks to invest up to €250 millions ($353.. Frankfurt. late venture. Baring Private Equity Profile.
followed by the subordinated debt holders. Because of this. Source: PEI Tags: subordinated debt. When a company goes bankrupt. Such debt is referred to as subordinate. senior debt.html 3i Group PLC 3i Group PLC Private Equity Profile | 3i Group PLC | Jonathan Russell The following piece is part of our effort to provide profiles of as many private equity firms as possible. We update the private equity profiles regularly. mezzanine debt often carries equity components with it such as warrants or other convertible securities that provide an option for the debt holder to convert the debt into equity within a specified time frame. the senior lender (often a commercial bank). subordinated debt and senior debt. Because senior debt‘s first priority repayment presents a lower-risk position compared to subordinated debt or equity investors. Further. commensurate with the lower risk assumed.com/2008/05/subordinated-senior-debt. private equity debt. subordinated debt is a higherrisk investment for the lender and therefore commands is a higher interest rate. differences between senior and subordinated debt. because the debt providers (lenders) have subordinate status in relationship to the senior debt. Subordinated debt. private equity subordinated debt Link to This Resource: Subordinated Senior Debt http://privateequityblogger. The senior lender is first to be re-paid. the senior debt is expected to have more favorable interest rates associated with it. has first priority in recouping its investment.http://privateequityblogger. to see more private equity tracker profiles follow this link. stake holders divide the proceeds from selling the company‘s assets. followed by equity holders. senior debt lender.com/2008/06/axa-private-equity.html Subordinated Senior Debt Subordinated Senior Debt Differences Between Subordinated and Senior Debt Private Equity Info offers a great clarification of the differences between senior debt and subordinated debt: Senior debt refers to debt that is in first-lien position. also known as mezzanine or junior debt is a second-level of debt. In the event of a default and subsequent liquidation. 274 | P a g e .
3i group private equity. Tags: 3i group." Read more. Media. The businesses 3i Group invests in are primarily: Oil. buyouts and private equity.6 billion in total assets. Many of these emails are in regards to accessing particular resources to help in career or potential client searches. Business Services. 3i group plc. Technology. private equity europe. The private equity group has offices in fourteen countries and focuses investments in growth capital.html Hedge Fund Manager List | Contact Details of Hedge Funds Hedge Fund Manager List Lists of Hedge Fund Managers | State by State Over the last 12 months our team has received around 100.. Below please find various state by state hedge fund manager contact lists available for under $100 each. Gas and Power. Story #1: The Wall Street Journal reports that the managing director at 3i Group PLC.. private equity tracker profiles. infrastructure. List of Hedge Funds in Massachusetts List of Hedge Funds In Connecticut 275 | P a g e .3i Group PLC 3i Group PLC is a European private equity firm managing €12. General Industrial and Financial Services. These contain contact details for various funds and may be instantly downloaded. Consumer.000 emails from professionals who have came and visited our websites. has condemned the European Commission's plans to "regulate small and medium-sized companies as anti-competitive and punishing.com/2009/05/3i-group-plc. Healthcare. Jonathan Russell. 3i group plc private equity. private equity 3i. European private equity firms Link to This Resource: 3i Group PLC http://privateequityblogger.
private equity consultant group. Houston & State of Texas If you have been directed to this post via email we apologize for the less than personal response. pre-marketing operational/risk analysis and third party marketing for private equity fund general partners who would like to raise assets from single and multi-family offices. Private Equity Research & Writing . Hedge Fund List. private equity consulting services.html Private Equity Law Firms | Private Equity Attorneys 276 | P a g e . List of Hedge Funds in. private equity consultant. hedge fund contact details Link to This Resource: Hedge Fund Manager List | Contact Details of Hedge Funds http://privateequityblogger. private equity consulting services.My private equity website attracts over 25.com/2008/02/hedge-fund-manager-list-contact-details. Private Equity Advertising . private equity marketing. If you would like to discuss ways that Private Equity Consulting Services can help you and your firm please contact me to discuss rates at Theo@peblogger. private equity services Link to This Resource: Private Equity Consulting http://privateequityblogger. training.List of Hedge Funds in New York List of Hedge Funds in California List of Hedge Funds in Chicago and State of Illinois List of Hedge Funds in Dallas. Hedge Fund Manager List. hedge fund directory.I have a team of private equity researchers and writers who help me complete various private equity research and writing assignments on-demand. Tags: List of Hedge Fund Managers. private equity consultants. please email us again if you have any further questions or concerns.com. third party marketing due diligence. I look forward to speaking with you.html Private Equity Consulting Private Equity Consulting Private Equity Consulting Services Private Equity Consulting Services is available a comprehensive consulting group providing services in the following areas: Private Equity Marketing Private equity marketing materials. Hedge Fund Managers in. Please see the Private Equity Advertisement page for more details. private equity consultancy.com/2007/11/private-equity-consulting.000 pageviews each month. Directory of hedge funds. Tags: Private equity consulting.
private equity lawyers. private equity attorneys. even the federal government. The risky practices of the private equity industry can sometimes lead to the courtroom and many buyout firms have found it wise to work closely with attorneys. private equity lawyer. Any law firms focused in the hedge fund or private equity industry can contact me about being added to the directory at Theo@PEblogger. We are in the process of compiling a directory of private equity attorneys as a resource for private equity firms. drawing up and negotiating contracts.html Apollo Management 277 | P a g e . please contact me for to be added. private equity legal.Private Equity Law Firms | Attorneys Directory of Private Equity Attorneys and Law Firms Private equity firms. Private Equity Law Firms. private equity attorneys directory. have often tested the legal limits of investing and have been the subject of lawsuits by institutional investors and various entities.com/2007/11/private-equity-law-firms-private-equity. along with hedge funds. directory of private equity law firms Link to This Resource: Private Equity Law Firms | Private Equity Attorneys http://privateequityblogger. Tags: Private equity attorney. The boom in the private equity buyout industry led to the rise of many law firms specializing in private equity and the relationship between attorneys and private equity remains an important one.com Directory of Private Equity Law Firms The private equity law firm directory is in the process. list of private equity attorneys. Private equity firms do not only seek lawyers for protection from lawsuits but lawyers often advise private equity firms on organizing funds' structures. private equity law.
I will be adding more to this list. Apollo Management L. New York. eventually making it into a guide of credible opportunities for those hoping to advance their career through education in private equity. 7-11..Private Equity and Venture Capital: This program is designed for executives with substantial field experience runs from rel="nofollow" target="_blank" Sept. private equity clubs and private equity fellowships. 2008 for RMB 55. If you have any potential additions please e-mail me at Theo@peblogger.com/2008/07/private-equity-education. like when Apollo teamed up with Texas Pacific Group (combining as Hamlet Holdings) to buy Harrah's Entertainment. 2008 for $7500. Headquartered in Purchase.html 278 | P a g e . offering internships in the industry.000. advancing students. Also the Tuck School of Business is friendly to private equity students. 15-18. Dartmouth offers a private equity focused MBAs.Apollo Management Apollo Management | Private Equity Firm Apollo management was founded by Leon Black in 1990 and since then has grown enormously to be ranked twelth in the Private Equity International list of the largest private equity firms. Apollo Management history. Apollo is known for having the operational and management resources for successfully restructuring and fixing portfolio companies. The Thunderbird Private Equity Center has a focus on the global private equity and venture capital industry. Apollo Management has raised just under $14 billion in capital as of 2007. Apollo Management favors investing in underperforming--and sometimes distressed--companies. Apollo Management private equity. list of private equity firms. However. Also. there is a similar program offered called Private Equity and Venture Capital-China taking place Oct. Tags: Apollo Management. Leon Black Private equity Link to This Resource: Apollo Management http://privateequityblogger.com/2007/10/apollo-management. so here are some quality private equity education opportunities that I've found: Top Private Equity Education Programs Harvard Business School. Apollo Management does invest in well-performing companies as well.html Private Equity Education There are many opportunities for people hoping to break into the private equity scene.P.com Link to This Resource: Private Equity Education http://privateequityblogger. Apollo Management profile. investors and professionals' understanding. but also has offices in London and Los Angeles.
With 64 funds across four investment disciplines (buyouts. consumer & retail. (Source) The Carlyle Group Resources and Articles Carlyle Group cuts 10% of staff Big Deals. While open to opportunities wherever they can be found. insight is often in short supply. David Rubenstein and His Partners Have Made Billions With the Carlyle Group. industrial. Carlyle‘s team of investment professionals includes 203 M. More than 1.The Carlyle Group The Carlyle Group Private Equity Firm | The Carlyle Group The Carlyle Group was ranked by Financial Week as the #1 private equity firm from their list of the top private equity firms. Europe. the World‘s Hottest Private Equity Firm. The result: a broader view of potential investment opportunities and deeper level of expertise. with more than $89. Australia. energy & power./M. Asia. financial services.s from many of the world‘s most prestigious universities. the Middle East/North Africa and Latin America. Since its founding in 1987. technology & business services and telecommunications & media.s.D.A. As one means of aligning its own interests with those of its Limited Partner investors.200 investors from 72 countries entrust Carlyle with their capital and their reputations. healthcare.D." according to PEI.D. Carlyle‘s conservative investment philosophy and disciplined investment process has generated extraordinary returns for its investors.6 billion of its own capital to its funds. real estate and leveraged finance). Carlyle‘s edge is its ability to leverage the local insight of its investment professionals.3 billion under management. growth capital. The Carlyle Group was founded by David Rubenstein and Stephen Norris in 1987 and has grown into the "World's largest private equity firm. Carlyle focuses on sectors in which it has demonstrated expertise: aerospace & defense. The History of the Carlyle Group The Carlyle Group is one of the world's largest private equity firms. relying on a top-flight team of 525+ investment professionals operating out of offices in 21 countries to uncover superior opportunities in North America. infrastructure.B.s and 11 Ph. real estate. the firm has invested $49. 34 J. In a world awash with information.4 billion in 836 transactions. automotive & transportation. How Have They Made All That Money? Why Are They in Washington? 279 | P a g e . creating value for Carlyle portfolio companies that translates into superior returns for Carlyle investors. Carlyle combines global vision with local insight. collaborating across the firms‘ investment disciplines from deal sourcing and due diligence through portfolio company development. Carlyle has committed more than $3.
New York City will likely attract more and more private equity firms. Best Private Equity Firm.html New York Private Equity New York Private Equity New York Private Equity New York has been generally considered the center of financial activity in modern history. As globalization becomes increasingly crucial for a private equity firm's success. Top Private Equity Firm. Tags: New York Private Equity. New York Venture Capital Link to This Resource: New York Private Equity http://privateequityblogger. New York Private Equity Firms List Coming soon: List of private equity firms in New York. David Rubenstein.com/2007/10/carlyle-group. The Carlyle Group Private Equity. Private Equity New York. New York Private Equity Firms.html Private Equity Books Private Equity Books List of Private Equity Books 280 | P a g e . with London posing a constant threat to that status. List of Top New York Private Equity Firms. The New York Private Equity Network is available exclusively to professionals at private equity and venture capital funds in the New York City area.com/2007/10/new-york-private-equity. A large percentage of private equity firms are based in New York. Private equity The Carlyle Group Link to This Resource: The Carlyle Group http://privateequityblogger. Private Equity New York Firms. New York City Private Equity. New York Private Equity Firms list. The Carlyle Group Private Equity Firm. and most private equity firms at least have a branch located in the New York City area.Tags: The Carlyle Group. New York is a hub for private equity activity hosting vast resources for private equity firms and a global platform for entering foreign markets.
the private equity book that I am reading is Lessons From Private Equity Any Company Can Use by Orit Gadiesh and Hugh MacArthur. capital is the primary focus of private equity firms. the mezzanine lender carefully looks to reduce risk by investing in an established. promising business.com/2007/10/private-equity-books. Of course. Mezzanine lenders offer the company the desired funds and do not require collateral. mezzanine lenders can convert their loan to equity or ownership if the company defaults on the loan. Thus. a Forbes article suggests a survival instinct has kicked in for private equity firms.com/2008/07/mezzanine-financing. Link to This Resource: Mezzanine Financing http://privateequityblogger. Currently. I hope that this will be a useful resource for professionals interested in reading private equity books. Private Equity Book Review. Private Equity Research Link to This Resource: Private Equity Books http://privateequityblogger. The dual risks to the mezzanine lender and the borrowing company make the exchange much more involved and lasting. because it is a way to secure funds from lenders that have no active interest in the company. Companies hoping to attract mezzanine funding usually submit detailed proposals that assure the lender that the investment will be profitable. Mezzanine financing particularly attracts privately-owned companies. but in order to survive in these uncertain financial times many have 281 | P a g e . Mezzanine financing is typically used by expanding companies that need money but don't want to go public and risk losing ownership of the company.html Recruiting Private Equity Executives In a shaky private equity industry. Here is my list of Private Equity Books: Review of Lessons from Private Equity Any Company Can Use by Orit Gadiesh and Hugh MacArthur Term Sheets and Valuations by Alex Wilmerding Tags: Private Equity Books. In addition to high interest rates. Books on Private Equity. Private Equity Book.I am compiling a list of all the highly recommended private equity books. mezzanine lenders charge unusually high interest rates (often 2030%) because the risk for the mezzanine lender is very high. However. although there is a major risk that the lender may lose a lot of money on the loan. the borrower also faces significant risk. So. and highlighting the ones that I have read so far.html Mezzanine Financing Mezzanine financing refers to a combination of debt and equity financing.
Most recruiters agree that hiring a seasoned veteran who brings leadership credentials is critical for firms. 282 | P a g e . it lists profiles of major private equity recruiters and has a number of resource links. This site shows at least 800 open private equity positions. Basic membership is free. One private equity executive recruiter said that the key is focusing long-term on a good adaptable candidate. Basic access is free and upgrading to premium is $60 for three months (with a 100% money back guarantee). So having capable veteran executives has become a vital element in private equity. The standard in financial career databases is eFinancialCareers. especially in today's shaky market.000 jobs in the finance industry paying at least six figures. Deals with debt between € 500 million to € 1 billion will have a private rating only available to the investors involved in the deal. as the industry is very fast-paced and subject to major changes. As the private equity industry expands into emerging markets having a strong executive will likely prove to be the edge on the new firms. Link to This Resource: Private Equity Firms Will Face Public Ratings http://privateequityblogger. and the debt they use to finance the buyouts.shifted their focus to human capital. On December 1. Private Equity Jobs Database tracks hundreds of private equity jobs and is routinely updated and monitored. among other things. Finance Ladder hosts more than 35. As I previously mentioned. This marks another in recent attempts to increase transparency in the industry. However. In addition. Link to This Resource: Recruiting Private Equity Executives http://privateequityblogger. Strong leadership will likely be the difference between a collapsing firm and a successful one. Firms sometimes use a rating system that analyzes. the candidate's entrepreneurial energy and experience in turnaround circumstances.com/2008/07/recruiting-private-equity-executives. The private equity industry has responded by encouraging more openness among members. the S & P will introduce a public ratings system for the companies that private equity firms buy. she says there is a method most executive recruiters use.html Private Equity Firms Will Face Public Ratings Private equity firms will soon have to add another measure hoping to improve disclosure in the industry.html Private Equity Database Private Equity Database Private Equity Database | Careers and Jobs Here are the top databases that I've found with large numbers of private equity jobs: For those of you searching for 100k+ salary jobs. But how do firms find a worthy candidate? Ana Dutra heads the leadership development division for executive recruiter Korn/Ferry International and she confesses that finding the best candidate is not an exact science. Full article here.com/2008/07/private-equity-firms-will-face-public. too.
average-case and best-case scenarios of how your business could fare.com/2008/07/better-business-plan. etc. here are Forbes' ten critical components to a good business strategy. balance sheet and cash flow statement. please e-mail me at Theo@peblogger. Full Forbes article. Business Model: Cover the operational structure of your business. credit histories and any relevant information that doesn't belong in the basic outline of your business. maintenance etc. and for the potential investors explain how much money you want and how you will use it. A good idea is to include these three elements for three years beyond that. Financial Projections: Offer a detailed first year income statement. Link to This Resource: Better Business Plan http://privateequityblogger. Stress-Test the Projections: Give worst-case. private equity job database Link to This Resource: Private Equity Database http://privateequityblogger. Industry Analysis: Introduce your competition in the industry and argue why your business will succeed against competitors. Also. Explain why these costs are necessary. Startup companies often make the error of underestimating expenses. and the buyers you target. and a outline of what to expect in the proposal.html Better Business Plan An impressive business plan is key to attracting investors.com/2007/08/private-equity-database. partners or officers that shows investors the skills and qualifications each member of your business possesses. so you can be financially prepared. from revenue sources (advertising. Sources and Uses of Funds: Tell investors how you plan to spend their money and why you need the money. Market Opportunity: Explain the product or service you are selling. Appendices: Finish your business plan with a supporting documents such as resumes. Executive Summary: communicate all the key elements of your proposal.).If you have another favorite private equity job site you'd like added. industry data.html 283 | P a g e .) to the cost structure (salaries. rent. The Team: This section should present profiles of your business's founders.com Tags: private equity database. product sales. contact info. give a "break-even analysis" that shows how much revenue is needed to cover the initial investment. A cover sheet and table of contents: Include all the obvious like your company's name. be realistic and research any possible startup costs.
It is pretty comprehensive and has easy-to-understand definitions.com/2008/07/private-equity-dictionary. Link to This Resource: Private Equity Dictionary http://privateequityblogger.Private Equity Dictionary Private Equity Industry Dictionary is a nice resource if there is ever a private equity phrase or word that you don't understand.html Private Equity Vs Venture Capital Private Equity Vs Venture Capital Comparing Private Equity and Venture Capital 284 | P a g e .
With the exception of turnaround investments. in the United States. cash flow whereas venture capital firms tend to invest in earlier-staged companies with a less proven market presence. Therefore. In Europe. PrivateEquityInfo seeks to clarify the distinction with the following: While both venture capital and private equity firms provide cash in exchange for equity positions in companies. when someone speaks about private equity. private equity firms tend to invest in more established businesses with a history of positive. private equity venture capital. Tags: private equity vs venture capital. The distinction between the terms venture capital and private equity described above applies to the vernacular used in the United States. Using the distinction drawn in the United States. private equity versus venture capital. the main distinction is the juncture in which the investment is made. the terms venture capital and private equity may be used somewhat interchangeably in that British English uses the term venture capital to describe a specific subset of the private equity market.It can be a blurry line between private equity and venture capital. they may in fact be referring to what someone in the United States would call a venture capital firm. That is. in Europe. the private equity data module available on PrivateEquityInfo specifically excludes venture capital firms unless a firm blurs the distinction by operating across the spectrum. however. and preferably reliable. buyouts and venture capital 285 | P a g e . the two terms are used as if they are distinctly different types of firms investing in different stages of corporate growth.
they have the same attitude. Tags: leverage buyouts. the fund focuses on long-term investments--including the Toronto Maple Leafs and Canada's Yellow Pages--that will bring stable returns over time. The Ontario Teachers' fund employs an in-house private equity staff of 55.com/2007/07/private-equity-vs-venture-capital. According to CNBC.html Equity Leveraged Buyout Equity Leveraged Buyout Removing the Leverage from Leveraged Buyouts Robert Profusek of Jones Day and James Woolery of Cravath Swaine & Moore talk with CNBC about the changes in private equity deal-making." A teacher who signs on for the pension plan may still be cashing its checks 70 years down the line. Tags: teacher pension fund.Link to This Resource: Private Equity Vs Venture Capital http://privateequityblogger. For that reason.com/2007/07/equity-leveraged-buyout.html 286 | P a g e . teacher's pension fund. teacher pension private equity Link to This Resource: Teacher Pension Fund http://privateequityblogger. "And our [private equity] people. using leverage in a buyout Link to This Resource: Equity Leveraged Buyout http://privateequityblogger. such as the lack of leverage in buyouts. reports CNBC's Melissa Lee. lbo.com/2007/07/teacher-pension-fund. pension fund private equity. the plan's private equity portfolio has garnered an average return of 24%. 2007: The approach is working.html Teacher Pension Fund Teacher Pension Fund Teacher Pension Fund Invests with Private Equity The Ontario Teachers' Pension Plan has decided to try its hand at private equity. Jan 27. leveraged buyout. equity leverage buyouts. "We operate the fund as a business--for us that's very important." said Ontario Teachers' Claude Lamoureaux. Over the last four years.
Tags: technology buyouts. he is optimistic about investors' appetite for risk and the liquidity of the market.html Alternative Investments Jobs Alternative Investments Jobs Alternative Investments Job Opportunities 287 | P a g e . glenn hutchins silver lake partners. co-founder of Silver Lake Partners. glenn hutchins. silver lake partners. Despite a big decline in the markets.Glenn Hutchins Glenn Hutchins Video of Silver Lake Partners' Glenn Hutchins Glenn Hutchins.com/2007/07/glenn-hutchins. technology silver lake partners Link to This Resource: Glenn Hutchins http://privateequityblogger. talks at the Davos 2008 conference about the current situation and future of technology buyouts. tech buyouts.
hedge funds. These qualified individuals often send me their resumes and this page will become a resource for private equity firms. Others have worked in finance and would like to make the transition to working in alternative investments.Many of my readers are recent graduates from business schools and looking to enter private equity. private equity job opportunities. please send an e-mail to Theo@PEblogger. private equity job listings. alternative investments jobs. buyout jobs. If you would like to have your job listing added here.com Tags: Private Equity jobs.html Iceland Private Equity Iceland Private Equity Yucaipa Cos. alternative jobs Link to This Resource: Alternative Investments Jobs http://privateequityblogger.com/2007/07/alternative-investments-jobs. Invests in Icelandic Company 288 | P a g e . executive recruiters and investment-related employers to promote their job opportunities.
Ron Burkle's holding company Yucaipa Cos..‖ Click here to read the rest of the story. I am writing a book on the private equity industry. Eimskipafelag Islands.. Iceland.com/2007/07/iceland-private-equity.. I am constantly asked for a comprehensive guide to private equity and although there are great resources available online. an inclusive private equity guide will help those hoping to learn more about the buyout world. Ron Burkle‘s investment firm. private equity ron burkle.html Private Equity Guide Private Equity Guide Writing the Private Equity Guide Book To further expand this website and provide more resources for those interested in private equity. Eimskip Chief Executive and President Gylfi Sigfusson said in a statement that he believes ―the support of a foreign investor into Iceland is a very significant step for our whole economy and demonstrates that there are investors willing to support Iceland going forward. The firm primarily focuses on private equity and has a history of leveraged buyouts in the grocery store chains and retailers. investing in Icelandic shipping and logistics company Hf. icelandic private equity investments. The Wall Street Journal reports the story: (June 30. executed a deal in an unexpected location. called Eimskip for short.. Yucaipa private equity holdings. 289 | P a g e . Tags: Icealand Private Equity. This blog will be updated with more information on the book as it becomes available. Yucaipa is taking a 32% stake in the company. has done a deal that some might describe as a bit off the beaten path. I have written over 300 articles for this blog and will condense this information to a easy-to-read book. 2009) Yucaipa Cos. investing in Iceland Link to This Resource: Iceland Private Equity http://privateequityblogger. in exchange for EUR15 million ($21 million) and forgiveness of some Eimskip debt.
private equity guidebook Link to This Resource: Private Equity Guide http://privateequityblogger.html Liquid Preference Liquid Preference Calculating Liquid Preference for a Startup Business 290 | P a g e .html Private Equity Placement Agent Private Equity Placement Agent What is a Private Equity Placement Agent? Private equity firms need to gather a lot of capital to start a fund and placement agents play a very important role in the fundraising process.com/2007/06/private-equity-placement-agent. New York Attorney General Andrew Cuomo has accused private equity and hedge funds of participating in pay-to-play transactions with pension funds. private equity books. buyout placement agent.com/2007/07/private-equity-guide. private equity guide book. private equity book. limited partners often use gatekeepers. A controversy centered around the use of placement agents to attract public pension fund investments--especially the New York Pension Fund. private equity resource.Tags: private equity guide. On the other hand. Private equity firms have used placement agents to secure capital commitments for funds although the use of such middlemen may change as states consider adopting tougher regulation on placement agents. private equity guides. Tags: private equity placement agent. placement agent fees. private equity fund placement agent. venture capital placement Link to This Resource: Private Equity Placement Agent http://privateequityblogger. private equity placement agents. Private equity general partners will rely on placement agents as intermediaries to institutional investors.
6 for every preferred shares they hold.000 common shares outstanding.5 / 7. etc. After the Initial Payment has been made in full. which shall be distributed to the preferred shareholders and common shareholders on a pro rata basis. The term sheet of this Series A round provides that: In the event of a liquidation event. preferred shareholders will get a further US$2 million x 2. e.. secured debts. the preferred shareholders will be entitled to receive in preference to common shareholders an amount equal to 2 times the purchase price per share. goes into liquidation and the sale price is US$6 million. a total of US$4. has 5. preferred shareholders will always get something back for their preferred shares before common shareholders get anything.333. Therefore.6 x 2. Therefore. they will always get more than common shareholders. some may be less. The common shareholders will get a total of US$2 million x 4 / 7.666. the purpose of liquidation preference is such that in the event a company goes into liquidation. and all other senior debts..666.5 = US$666. The scope of liquidation preference varies between different term sheets. Investors A invests $2.8 x 2 = US$1.666. In a Series A financing.000. plus declared and unpaid dividends (the "Initial Payment").5 million = US$4 million. have all been settled: How much will the preferred shareholders get? They first get US$0. Example A: Venture Tech Ltd. However.What is liquidation preference? Liquidation preference refers to preferred shareholders' rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that the company goes into liquidation. any assets remaining shall be distributed to the preferred shareholders (on an as-converted basis) and common shareholders on a pro rata basis.333. It is possible that common shareholders will get nothing if the company does not even have enough assets to settle the preference amount..333. Venture Tech Ltd.666 + US$1. Assuming no declared and unpaid dividends. the Initial Payment is US$1.000. I.5 = US$1.666. This gives US$2 million ($6 .$4 million) remaining.g.500.e.000 in return for 2. Some may be extremely favorable to investors.8).. In other words.333 = US$6 million 291 | P a g e .000 Series A Preferred Shares (i.e. purchase price per share = $0. employees' wages. Total = US$4. NOW.
5 = $6 million The common shareholders will get a total of $4 million. article source Tags: calculate liquidation preference. what is liquidation preference. They will get a total of $4 million (the Initial Payment) + $6 million x 2. the sale price must be at least US$16 million for the preferred shareholders to get US$8 million. they in any event will get no more than 4 x $2 million = $8 million (however high the sale price may be). In other words. since the maximum total amount the preferred shareholders can get is capped at 4 times the purchase price per price.com/2007/06/liquid-preference. the break even sale price is US$16 million. venture capital liquidation preference. and the Initial Payment). how to find liquidation preference Link to This Resource: Liquid Preference http://privateequityblogger. since the maximum amount they can get is capped. That's why by setting a cap on the liquidation amount the preferred shareholders can get is company-favored.5 / 7.. NOW. Therefore. All remaining assets will then be distributed among them and common shareholders until the preferred shareholders have received 4 times the purchase price per share (plus unpaid but declared payment.5) = 8 . let's do the math: Putting aside the sale price.html Private Equity 2008 Private Equity 2008 292 | P a g e . they will still get only US8 million. Written by Andy Lau. let's say this time the sale price is US$10 million. All remaining assets thereafter will be distributed among all common shareholders on a pro rata basis. This time everything is the same as above except that the total amount the preferred shareholders will get for each preferred share they hold is capped at 4 times the purchase price per share.4 y = 16 Therefore. how to calculate liquidation preference.e. liquidation preference. If the sale price exceeds US$16 million.Example B: Following example A above.5 / 7. the Initial Payment as in Example A and B). Example C (company favored): Let's give it a twist. they first get 2 times the purchase price per share in preference to common shareholders (i. What is the break even point for the sale price? Let y be the break even sale price: (y .4) (2.
starting out in a smaller firm can be a good career move as you will develop a broader skill set based on your working. From Private Equity Jobs.there are still great opportunities for private equity jobs if you now how and where to look for them.Private Equity Hiring Trends for Spring 2008 Ignore today's negative news about the Private Equity Jobs overall market and related job growth . as they can be a valuable source for a position based on their leveraging their smaller size and the overall financial structure of their deal flow. article source Tags: private equity jobs. many of these smaller deals would not generate the type of ROI that larger hedge funds need to stay in business. private equity 2008 report. You want to identify a niche job board that targets private equity jobs and then upload your resume to it and/or look at private equity jobs via this type of a site. Especially if you target small to medium sized hedge funds that are not in as leveraged a position as the much larger Wall Street firms and that are concentrating on deals that the larger firms cannot afford to work with.com/2007/06/private-equity-2008. private equity 2008. Many of these smaller hedge fund firms are hiring because they don't have the capital needs of the larger firms and/or need external funding. target these smaller funds for a private equity job as you move forward. In most cases these types of firms are working with less borrowed money and as a result. not borrowed funds. Since the credit markets are experience so much turbulence these smaller private equity funds are unearthing more investment opportunities that are more aligned with good business practices. private equity career. So. And. private equity job data Link to This Resource: Private Equity 2008 http://privateequityblogger.com. enabling the smaller firms to work on deals that are smaller but lucrative. they are utilizing their own capital. not the larger firms on Wall Street that many job seekers target automatically. Private Equity Jobs via Niche Firms A lot of the strong growth that is occurring in the private equity jobs market is occurring with smaller or niche private equity firms.html Private Equity Job Board Private Equity Job Board Explaining How to Use Private Equity Job Board 293 | P a g e . And. private equity careers. as again.the media is painting a much worse scenario that what is real . the credit market does not negatively impact their growth and related job opportunities.
Compensation is typically come up in conversations with private equity jobs recruiters .it's called building valuable mind-share. Identify a small number of private equity jobs recruiters that you want to work with who are focusing on private equity jobs and maintain some regular contact with them. if not.be honest with them about your current position (don't pad your numbers!) and what you'd like to make for your next position. will they treat your resume in confidence and not shotgun blast it out to companies and via the web. Here are some basic rules of the road to utilize to work for/with private equity jobs recruiters: 1. compensation and/or optimum private equity job you are looking for. 7. Always take a call from a private equity jobs recruiter . do they concentrate on a specific geographical are. as they will remember this moving forward and refer them to someone that you know may be a better fit or simply let them know your background is not a good fit. 2. as they have access to a steady flow of private equity jobs that you might not find via any other source.they are an important source for jobs and it is always in your best interest to have some meaningful dialog with them about your background. 4. 5. They are all busy looking for that "right" candidate . Do refer your friends/associates to your recruiter network for any type of private equity job . private equity jobs.html Private Equity Recruitment Private Equity Recruitment Finding a Private Equity Job Working with recruiters It's critical to know how to work with a private equity jobs recruiter if you want to get your resume in front of the right private equity hiring firm and to give personal brand broad distribution to a group of targeted private equity job recruiters. If a recruiter contacts you about a private equity job then ask for a job description first and then analyze it to understand if it matches your skill sets.so. back office financial services). Some of the specific points you want to discuss with a private equity jobs recruiter include: what their specific focus is in terms of jobs (hedge fund jobs. which can be a summary of your background to date. Remember private equity jobs recruiters are paid a percentage fee based on the total compensation package that they negotiate for/with you . what is time-line to hear back from them. 3.com/2007/06/private-equity-job-board. They can give you valuable perspective about what other peers are making in the private equity jobs marketplace. 8. Building a long term relationship with them is a good thing.they will remember you for the valuable referral and this will help to cement a relationship with them .it is in their best interest to get the absolute best compensation package for you. 295 | P a g e . Understand that most recruiters are "retained" to find private equity job candidates that would be a good fit for a private equity job that they are work on. when you are on the phone with them make sure you have a career highlights script you want to review with them. 6. don't waste their time.Link to This Resource: Private Equity Job Board http://privateequityblogger.
a Mergers and Acquisitions adviser and President of MidMarket Capital. A business owner that has 85% or more of his net worth tied up in the business and is "business poor" 4. private equity fund jobs Link to This Resource: Private Equity Recruitment http://privateequityblogger. private equity recruitment. Below are four scenarios where private equity may be the best solution.com/2007/06/private-equity-recruitment. In this article we will present some situations where the private equity model is a superior solution for the business seller. He explains why private equity might be your best business exit strategy: I must admit that I have had a bias against my clients selling their businesses to private equity firms until I discovered that there are some situations where it might be the best exit strategy. private equity jobs recruiting. Strong sales and distribution capabilities 296 | P a g e .html Private Equity Exit Strategy Private Equity Exit Strategy Private Equity Business Exit Strategy The following was written by Dave Kauppi. you don't want your resume being posted across web sites without your permission or knowledge. The business owner that is nearing retirement and wants to take some chips off the table from a position of strength Before we explore these in greater detail.9. We will also present. private equity career.com. the "mathamagic" of a good private equity acquisition. for obvious reasons. Established brands and/or strong customer relationships 4. Strong Management 2. 1. Because the valuation multiples in these industries can get a little rich. below are the general investment criteria for most private equity buyers: 1. A company in need of growth capital 2. Always ask a private equity jobs recruiter where they will be sending and/or posting your private equity jobs focused resume. We normally achieve a better initial valuation from industry strategic buyers that build other synergy factors into their purchase valuation models. Private equity job. Our firm represents business sellers primarily in the information technology and healthcare industries. they do not normally fit the more conservative EBITDA models of the private equity industry. article source Tags: Private Equity Jobs. as one of my colleagues calls it. A company where one partner wants to retire and sell and the other partner wants to continue to run the business for several more years 3. private equity recruiters. Leading market share or Rapidly Growing Market 3. From Private Equity Jobs.
5. However. The business is doing $25 million in revenue and producing an EBITDA of $3 million. A private equity firm that specializes in his industry offers him a company valuation of $21 million and wants him to invest some of that equity back into the company and have he and his team remain on board to run the company. The economics of the initial transaction are: Company selling price $21 million Owner equity reinvestment $2. You might think that if the owner invested $2.5 mil 297 | P a g e . A minimum transaction size and equity investment level (private equity firm specific) 8.35 million Private equit firm portion (70%) $5. he may get a higher initial price. let's say that he can get $25 million from an industry strategic buyer. and Large greater than $10 million 7.205 million The beauty of this model for the owner is that the private equity firm welcomes the equity reinvestment by the seller at the same leverage that the PE firm employs. for example.145 million Owner reinvestment portion (30%)$2. Platforms with potential for expansion into new products. Management teams interested in retaining an ownership stake A hypothetical transaction: The business owner is 50 years old and has reached a crossroads point in his company.5% ($2.795 million Owner value creation Value of 30% interest in $25 mil company $7. his $2. Because the PE firm relies on debt leverage. He loves his business and is not ready to retire. Therefore.65 mil Total equity investment required $7.Small $2 million to $5 million. One could argue that he really owns 30% of a $25 million company based on the strategic company valuation. the owner gets to reinvest with his ownership equity on a par with the PE firm. The owner is considering taking the company to the next level with either a major capital expenditure or a major expansion of his sales effort. Medium $5 million to $10 million.205 million into a company valued at $21 million that his ownership percentage would be 10. The "mathamagic" is as follows: Sale price $21 million Total debt used to fund the transaction(65%)$13. services and technologies 6.205 million Owner pre tax cash proceeds $18.205 million divided by $21 million). A minimum EBITDA level (private equity firm specific) . If he sells to a strategic buyer.205 million represents 30% of the equity in this company and he now owns 30% of a $21 million company. he is at the point where he should be diversifying his assets and not plowing an even greater percentage of his net worth back into his business. For this example.
He gets to retire in another five years. He receives an industry standard compensation package with bonuses as an employee CEO.26 million to retain his 30% position.This is a cross roads decision for an owner. the owner has secured his family's financial future by taking the majority of his company value in cash allowing him to greatly diversify his asset portfolio. They actively pursue tuck in acquisitions to add to the organic growth that they help orchestrate. but when every spare dollar is plowed back into the business to support his growth goals. That is bad enough. Now he is faced with the company being sold to an industry buyer and he looses his desired management control and his normal retirement timeframe. Over the next 3 years they make several small acquisitions totaling $12 million and they employ the same 65% debt. The senior partner decides that he wants to retire and wants the junior partner to buy him out. For purposes of this example. which was his original schedule. Not a bad outcome for our business owner. Fast forward 2 more years (typically 5 year holding period) and the company is now at $100 million in revenue and is a valued target of a big strategic industry player. The junior partner does not have access to the capital required. this is very smart money. Below is a more in depth look at the situations that this strategy can be successfully employed: A company in need of growth capital . Your company is doing great and you still have the energy and desire to run your business. he must make a substantial investment back into the business either in the form of debt or his own capital. One may be 65 years old and is a 70% owner in the business and the junior partner is 50 years old and a 30% owner. The conversation might be something like. "You keep telling me we are wealthy. With a private equity firm that specializes in his industry.5 million. so where is the vacation. The PE firm sells the company for $225 million.2 million.795 mil Total post sale value $26. the new house. They leverage their industry contacts and industry expertise to expand markets and distribution. He recognizes the potential in his market.translation the business that occupies 60 plus hours of his time per week and much of his thought outside of business hours.Add cash proceeds from the sale $18. The previous owner reinvests $1. This is an ideal situation for a PE group to acquire the senior partner's equity and retain the rest of the management to run and grow the business. He determines that having a deep pockets partner with industry presence and momentum provides him a superior risk reward profile. but in order to capture it. Why would you sell now? There are several compelling reasons.often a successful business is run by two partners with a meaningful difference in age. when the PE firm exits from their investment. A company where one partner wants to retire and sell and the other partner wants to continue to run the business for several more years . we will assume that the PE group invites the previous owner to invest in these tuck in acquisitions at the same leverage so that his ownership is not diluted. First. You are 60 years old and you want to retire in five years. The business owner that is nearing retirement and wants to take some chips off the table from a position of strength .This is a fairly common situation and sometimes for marital harmony. the spending money we should have?" It just might be the right time to recognize your life's priorities. Our owner's final cash out is valued at $67. 298 | P a g e . that can be the breaking point. The total equity requirement is $4. He now has a deep pockets partner to actively pursue his growth strategy. The spouse is often in competition for her mate's time with the mistress . the business owner decides to unlock the liquid wealth in his business.295 mil Now let's look at how this can get really exciting. He still gets to run his company.I can not stress enough how important this can be to your family's financial future. A business owner that has 85% or more of his net worth tied up in the business and is "business poor" .
That number rose to 350. Business owners and other wealthy citizens should pay close attention. has been extended through 2010 as a result of the Tax Reconciliation Act signed into law by President Bush in 2006. contingent events. It could potentially go higher. Another important point is that men and women are nearly tied on the percentage that 299 | P a g e . According to the Federal Reserve. venture capital exit strategy Link to This Resource: Private Equity Exit Strategy http://privateequityblogger. unsettling factor for business owners contemplating retirement are potential changes to the tax code. but it doesn't have to be.000 by 2009. So. the trend looks to be gradual. In the first quarter of 2006.com/2007/06/private-equity-exit-strategy.8% of all venture capital money backed female-owned companies. loss of a major account. private equity exit strategy. have put forward proposals to change the current tax structure.html Venture Capital Women Venture capital is a male-dominated industry. For example. female entrepreneurship has risen drastically from 1997 to 2006 by 42%. but not necessarily your exit timeframe. the current 15% tax rate on capital gains. The 2 democratic candidates are in favor of a 25% or higher capital gains tax rate. and agree to run the company for the PE firm for five years. a shift in the competitive landscape. not just the first bite. An additional.000 businesses changed hands. put the bulk of your net worth into a diversified portfolio of financial assets.cash out. the laws of supply and demand point to an erosion in valuations for business sellers. However. I had a somewhat narrow view on selling businesses to private equity groups based strictly on the initial company valuation compared to potential strategic buyers. While this scenario may be difficult to envision at first. if the federal budget deficit worsens and Congress adopts a tax the wealthy philosophy. in 2001 50. a rush to the exits can precipitate a sudden. At this point. as we have seen recently in the prices of certain stocks and debt obligations.This strategy requires the business owner to view the business sale and their retirement as separate. I am now enlightened and can more objectively view the potential outcomes for the business owner that encompass the owner's retirement timeframes and risk reward profile. Democratic party leaders. including the major presidential contenders. A private equity firm can provide an initial . but often a very exciting second bite of the apple when you exit together in five years. it can be very advantageous. Most of the proposals would increase personal income tax rates and other forms of taxation. However. in 2011 this lower rate will revert to the rates in effect before 2003. Too many owners wait too long and end up selling because of a negative event like a health issue. calamitous drop in prices.secure your family's future . private equity exit strategies. As I said at the beginning. the best decision is to sell your company to a PE group 5 years before you plan to retire. Source Tags: private equity exits. Experts project a doubling in the number of businesses that will hit the market looking for a buyer by 2009. the baby boomer retirement issue presents another compelling reason to sell now and retire later.000 in 2005 and is projected to increase to 750. or family demands. As the overall population ages and sellers outnumber buyers. One answer is to move up your sale timeframe. Finally. 4. which were generally 20%. previously scheduled to expire in 2008. However. An industry specialized PE firm with a track record can provide.
obtain angel funding. "Some of our investments faced reduced valuations during the third quarter as a result of the extraordinary turbulence in the global capital markets.html 300 | P a g e . So what can be concluded from this data is that while there are a large number of female-owned businesses. According to the WSJ: Those include some of the firm's biggest deals struck at the peak of the buyout boom. not enough women are trying to obtain funding from angel investors or venture capital funds. In January 2007 KKR invested $700 million in the Silicon Valley tech firm. KKR originally filed to go public in June 2007 just weeks after rival Blackstone Group LP's celebrated IPO. when a proposal is submitted.html KKR IPO KKR IPO KKR Delays IPO to 2009 Kohlberg. KKR Private Equity has struggled throughout 2008. IPO Kohlberg Kravis Roberts. The worsening financial crisis forced KKR to push back its offering of shares to the public on the New York Stock Exchange. KKR LLC IPO Link to This Resource: KKR IPO http://privateequityblogger. Link to This Resource: Venture Capital Women http://privateequityblogger. KKR Initial public offering. It quickly shelved the offering after the subprime mortgage market began to collapse. Kravis & Roberts (KKR) is still planning on launching an initial public offering. which announced sharp losses last week.'' said KKR co-founder George Roberts in a statement. KKR Private Equity.com/2007/06/kkr-ipo. posting major quarterly losses. It marked down by about 28% in the value of its stake in Energy Future Holdings Corp.com/2008/07/venture-capital-women. but it has delayed that IPO to 2009. In the three month period ending September 2008. If more female-owned companies tried to attract investors they would stand roughly the same chance of success male-owned companies. It also saw its minority investment in publicly traded Sun Microsystems drop by $63 million. the Texas Utility formerly called TXU. That investment is now flat after being marked up. KKR has also now written down its investment in European semiconductor company NXP BV at by 50% of its original cost. Tags: KKR IPO.. KKR Private Equity lost $649 million in the value of its investments.
Private Equity Acquisition Strategy Private Equity Acquisition Strategy Private Equity Firm's Ideal Acquisition Strategy While venture capital firms tend to invest in earlier stage growth companies. * Significant growth potential. 301 | P a g e . * A clearly defined exit strategy. merger or recapitalization. investments are realized through an initial public offering. private equity groups tend to focus on more mature businesses. but complementary to. sale. the platform investment. often contributing both equity and debt (or some hybrid) to the transaction. Generally. a common strategy is to acquire a "platform" company and grow the platform through further "add-on" acquisitions. both operationally and financially. the synergies of the combined entity create a more efficient whole. * Ability to generate cash. * Ability to create value. CREATING VALUE While private equity firms employ various strategies to create value in their investments (such as the consolidation of a fragmented industry). What do these firms look for in a potential acquisition? * Strong management team. Ideally. Private equity investors (also called financial sponsors or buy-out firms) invest in non-public companies and typically hold their investments with the intent of realizing a return within 3 to 7 years. Add-on acquisitions are typically smaller in size.
private equity investors are keenly focused on the cash flow of the business.LEVERAGE AND CASH FLOW Private equity groups typically use leverage (debt) to increase the return on the firm's invested capital. own portfolio companies that employ large numbers of people. buyout acquisition. called "carried interest". private equity strategy. growth also consumes cash. The exit provides the financial sponsor with a finalization of the investment and an opportunity to distribute profits. or just "carry". if the strategy is to grow the business. the global growth of private equity has captured more and more public interest. The exit provides the investor a mechanism to monetize the firm's equity. Furthermore.com/2007/06/private-equity-acquisition-strategy. buyouts. the cash flow a business generates in the early years following the acquisition is almost entirely consumed by the debt service. often. Such interest is understandable. a significant component of a private equity professional's compensation is based on this profit distribution. In fact. Written by: Andy Jones. For this reason. Kravis. 302 | P a g e . The ability to generate cash allows the private equity investor to contribute more debt to the transaction. is a big name in private equity and ranked fourth in the PEI 10 largest private equity firms in the world. Private Equity Kohlberg.html KKR Private Equity KKR Private Equity Kohlberg. Roberts & Co. President and Founder of Private Equity Info. Roberts & Co. the ability to improve operations to generate increased cash flow will also yield a greater return on investment upon exit. At KKR. Funds managed by KKR and other private equity investors play significant roles in the financial markets.com Tags: Private Equity Acquisition. and it usually is. private equity info. Here is the summary of KKR Private Equity via the firm's website: In recent years. This is also referred to as "a liquidity event". Profits upon exit go to back into the cash account to fund new acquisitions. and invest on behalf of public and private pension plans that have millions of individual beneficiaries. Kravis. The amount of leverage employed is normally determined by the target's ability to service the debt with cash generated through operations. Because of the aggressive use of leverage. Because cash flow is the basis for valuation. private equity buyout Link to This Resource: Private Equity Acquisition Strategy http://privateequityblogger. EXIT Private equity groups make money from both the cash flow of the acquired business and from the proceeds generated upon exiting the business.
KKR Investments. KKR Private Equity has struggled throughout 2008. India.7 billion in the first six months of 2008. The worsening financial crisis forced KKR to push back its offering of shares to the public on the New York Stock Exchange. have committed nearly one-half of the capital raised for our recent funds. several of the largest buyouts in history.we take great pride in the accomplishments we‘ve made over the last three decades. KKR LLC. Singapore. Kravis & Roberts (KKR) is still planning on launching an initial public offering. Turkey. and France. As a global leader in private equity investing. Although the industry is declining. and foundations — which provide the majority of the capital for our funds. KKR Initial Public Offering Link to This Resource: KKR Private Equity http://privateequityblogger. but venture capital and mezzanine funds have countered big buyout's weak performance. Venture capital fundraising increased 15% and mezzanine funds set a first half record of $24 billion (almost entirely from Goldman Sachs Capital Partners' $20 billion fund). Denmark. the 185 U. Kohlberg Kravis Roberts and Co. In this way.. and believe our investments have had a positive impact on our portfolio companies. European private equity also had a fortunate first half of the year. only 3% behind last year's performance. and the largest completed or announced buyouts in the United States.com/2007/06/kkr-private-equity.com/2008/07/private-equity-half-year-performance. private equity firms managed to raise $132. private equity firms held strong in the first two quarters of 2008.S. representing nearly 9 million members. their stakeholders. Resource #1: KKR IPO Kohlberg. we help build globally competitive franchises. More than 20 state and local public pension plans. and the economies in which we operate. KKR Funds. our achievements to date include the first leveraged buyout in excess of $1 billion. The key beneficiaries of our investments are people who receive support from pension funds. In the three month period ending September 2008.. posting major quarterly losses. Our approach is to work as partners with the management of our portfolio companies and remain deeply involved in the operations of our businesses. and research and development during our ownership. innovation. Australia. endowments. KKR Private Equity lost $649 million in the value of its investments. increasing %15 from this time last year. the Netherlands. the first friendly tender offer in the buyout of a public company. Down 14 firms from this point last year. the number shows that private equity is still a large part of the economy. Source: Fox Business and Dow Jones Private Equity Analyst Link to This Resource: Private Equity Half Year Performance http://privateequityblogger.html Private Equity Half Year Performance U. KKR IPO. many of which have increased employment. but it has delayed that IPO to 2009.S. KKR Private Equity Funds. KKR First Data. Click Here to Read More Tags: KKR Private Equity. KKR financial.html 303 | P a g e . Leveraged buyout fund-raising fell 20% compared to last year.
304 | P a g e . Private Equity Job Statistics Link to This Resource: Private Equity Career http://privateequityblogger. a private equity career will continue to be a top destination for young professionals. There's the obvious financial incentive. Despite 2008's slowdown in the industry. Link to This Resource: Private Equity Job http://privateequityblogger. Private Equity Jobs Database tracks hundreds of private equity jobs and is routinely updated and monitored. making it the class's most popular choice. but the National Venture Capital Association reports that there were no venture capital-backed IPOs in the second quarter this year. with MBAs flooding the industry. private equity continues to be one of the most desirable industries for MBA graduates. it is getting more and more difficult to find a job at a private equity firm.html Private Equity Career Private Equity Career Private Equity Career | Private Equity MBA The private equity career market is highly competitive. it lists profiles of major private equity recruiters and has a number of resource links. one tenth of Stanford MBA graduates entered the private equity industry that year. Private Equity Job. 13% of Harvard Business School MBA graduates went to work for private equity firms. This is a critical opportunity for venture capital investors to collect returns. Tags: Private Equity Guide.html Venture Capital Industry Decline Zero Venture-backed IPOs in Second Quarter of 2008 As I recently described. the average salary after graduation for MBAs in private equity is $111. In addition.441 after working five years. As the buyout boom has restarted in the last couple years.com/2008/07/private-equity-job. Private Equity MBA. In 2006.com/2008/07/private-equity-career_08. even with a MBA from a prestigious school. Basic access is free and upgrading to premium is $60 for three months (with a 100% money back guarantee). With high financial incentives and impressive performance from private equity firms. an initial public offering is when a company first issues common stocks or shares to the public. But also there is the lure of working with other talented business people and playing a big part in shaping a company that other industries just don't offer. here is a great tool. Private Equity Career. Similarly. Career in Private Equity.Private Equity Job If you're looking for a job in private equity.296 and an expected $280.
the number of M&A deals dropped from 70 to 50 in the last quarter. Link to This Resource: Exchange-Traded Funds http://privateequityblogger. Many investors love the diversification that an exchange-traded fund offers. Started in 1988. The exchange-traded fund's price varies throughout the day. Like an index fund. a one year subscription is $1495! Link to This Resource: Private Equity Analyst http://privateequityblogger. so the investor can buy on margin or sell short. but recently the SEC authorized actively managed ETFs. many exchange-traded funds are passively managed.html Private Equity Fund of Funds 305 | P a g e . and does not have a net asset value calculated at the end of each trading day. the Private Equity Analyst has built a reputation as a top news source for private equity firms. Plus there is no minimum investment required. Mergers and acquisitions volume similarly declined in Q2. which reduces management expenses considerably. Just one catch. This illustrates the recent decline in the venture capital industry following the boom that began this decade.The number of venture-backed IPOs fell from an average of seven per month last year to zero in the second quarter of 2008 (April. Link to This Resource: Venture Capital Industry Decline http://privateequityblogger.html Exchange-Traded Funds Similar to an index fund." Read the full report here. but it is traded like a stock.com/2008/07/exchange-traded-funds.html Private Equity Analyst The Private Equity Analyst is a comprehensive monthly print newsletter that provides news and information about all areas of private equity from venture capital to mezzanine financing. the NVCA President said that the start-up industry's fall "represents a serious problem that will have long reaching economic implications if not addressed.com/2008/07/private-equity-analyst. Benefits of an Exchange-Traded Fund An exchange-traded fund is traded like a stock. May June). Most ETFs have been passively managed. an exchange-traded fund follows an index or a commodity.com/2008/07/venture-capital-industry-decline_08. so an investor can own as little as one share in the fund.
at least for the private equity-owned companies. 84% of the surveyed executives expect their portfolio to grow in the next 12 months. Fund of funds require smaller investments and so present an alternative for smaller private equity investors. The minimum requirement is still substantial and may be too much of a commitment for some investors. usually more than $250.html Private Equity Investors Private equity investors are a great source of capital for companies. and even different industries. Private equity investors search for companies with high-growth potential. Industry experts believe that this slump is a reflection of the credit crunch and declining economy. This is not to say that private investors will throw away their money.com/2008/07/private-equity-fund-of-funds.000. but with a good business proposal and some luck many small businesses have secured large investments this way. Link to This Resource: Private Equity Outlook http://privateequityblogger. The majority of those executives also expect the number of deals to drop. With the crunch expected to last at least a year. Link to This Resource: Private Equity Fund of Funds http://privateequityblogger. rather the majority plan to increase staff. Fund of funds offer the benefit of diversification by investing in a variety of different funds. Many private equity investors are successful entrepreneurs who offer small businesses helpful advice. Private equity investors are generally wealthy individuals who commit large sums of money to start-up businesses. hoping for high returns of their investments. A private investor is usually easier to attract than a venture capital fund.html Private Equity Outlook A recent report on private equity revealed the most pessimistic outlook in five years. Benefits of a Fund of Funds Private equity investing is typically reserved to wealthy individuals with substantial money for investing. 34% predict major growth.A private equity fund of funds pools capital from investors and invests in private equity limited partnerships. contacts and of course. only 2% of those PE executives plan to reduce portfolio company staff. The report was not all bad news. 85% predicted deals would be smaller in the coming year. here's a profile of private equity investors. experience. Disadvantage of a Fund of Funds A fund of funds charge an additional layer of fees for the fund of funds manager.com/2008/07/private-equity-outlook. money. Of 100 private equity executives Grant Thorton surveyed. private equity executives are taking a longterm view. private equity investors can be a great alternative to larger venture capital and private equity funds 306 | P a g e . For small businesses raising capital. Employees for private equity-owned companies also have some good news.
this is a chance to gain capital for expansion and large privately owned companies opening up to be publicly traded.com/2008/06/leveraged-buyout.html Private Equity Group The Private Equity Investment Group has over 5. venture capital.com/2008/06/private-equity-group.000 members and connects private equity. and angel investor contacts to create strategic partnerships. the company making the buyout is able to pay a higher price.html Leveraged Buyout A leveraged buyout (LBO) is a hallmark of private equity firms. here is an explanation of what a leveraged buyout is. For smaller companies. There are some qualities that make a company more prone to a leveraged buyout: Hard assets (used as collateral) Minimal existing debt loans Good history of consistent cash flows Prime opportunities for increasing cash flows from operational changes Temporary market conditions reducing share price Leveraged buyouts Link to This Resource: Leveraged Buyout http://privateequityblogger. refer deals. Investors take a risk 307 | P a g e . The rationale for a leveraged buyout is that financing a buyout through leverage creates potentially higher returns.com/2008/07/private-equity-investors. The company making the leveraged buyout will sometimes use assets from the acquired company as additional collateral on the loan. In the future. A leveraged buyout occurs when a company acquires another company using a significant amount of borrowed money. because income flowing to equity is taxed but interest payment toward debt are not taxed. the Private Equity Investment Group plans to hold webinars and networking events.html Initial Public Offering An Initial Public Offering (IPO) is when a company first issues common stocks or shares to the public.Link to This Resource: Private Equity Investors http://privateequityblogger. Link to This Resource: Private Equity Group http://privateequityblogger. trade models and co-adapt new strategies. Also. The purpose of leveraged buyouts is that it allows companies to make major acquisitions without having to commit major capital.
com/2008/06/private-equity-impact-on-jobs. private equity helps create jobs. So. Link to This Resource: Private Equity Impact on Jobs http://privateequityblogger. and invest capital into healthy businesses for greater expansion. A recent study tested how private equity effects jobs. A private equity fund is managed by a private equity firm. domestic jobs in private equity-backed firms increased 13. The Initial Public Offering is one way that private equity firms receive returns on their investments. The results suggest that private equity acquisitions create more jobs: The combined worldwide workforce of the 42 firms grew 8. or restructure the operations of an underperforming business.5% increase for all U.html Private Equity Starting Salary Private Equity Starting Salary Headhunter Talks of Private Equity Starting Salaries 308 | P a g e .com/2008/06/initial-public-offering. The study followed 42 large companies acquired by 8 major private equity firms from 2002-2005 and found that after initial job losses.investing during the IPO because it is difficult to predict how the shares will do without prior data and the IPO is typically a turbulent transitioning period for the company.com/2008/06/private-equity-fund. Capital investments from the fund are used to strengthen and expand a healthy business. in theory.3%. Private equity investors make a long-term commitment hoping for a reversal of a distressed company or an event that results in a liquidation of assets like the a big company purchasing the company or an Initial Public Offering. the companies were able to exceed the initial job losses and relative rates of job gains their competitors within two years of the takeover.6% Click here to download the full report.S. U.html Private Equity Fund A private equity fund is a pooled investment vehicle that invests in unregistered equity securities. The fund invests directly in a private company or "buys out" a public company resulting in a delisting of public equity.S. much higher than the 5.4%.html Private Equity Impact on Jobs Private equity funds take control of underperforming companies and restructuring and reforming the operations.4% Private equity-backed manufacturing firms had the highest gains with a worldwide employment increase of 8. Link to This Resource: Initial Public Offering http://privateequityblogger. Link to This Resource: Private Equity Fund http://privateequityblogger. Non-manufacturing companies backed by private equity expanded total employment by 8. businesses.
LP.com/2006/12/private-equity-starting-salary. VCLocator Directory: includes 6000+ venture capital firms. while Wall Street pays a measly $40. The group. That compares with $300. Private Equity Council. talks about the huge starting salaries being offered.000 your first year. the Carlyle Group.Private equity firms are in a competition with Wall Street to offer top salaries for top talent. Private equity and hedge fund groups worked together to stop another proposal that would raise taxes on the share of investment profits received by managers to as high as 35 percent. And then there‘s the bonus – at private equity you can expect $250.000 $60.000 in the first quarter of 2008 lobbying against proposals that raise taxes on buyout firms and executives. 309 | P a g e .000 in total compensation. Venture Choice Directory: a venture capital. VClocator boasts of having more venture capital firms than all its competitors.html Private Equity Lobbies Against Taxes The chief trade group for private equity firms has spent $740. with simply a link to the firm.000 in total compensation for Wall Street. private equity compensation. TPG Capital and Bain Capital Partners. includes major private equity players: Blackstone Group. With all the money private equity firms reaped in the boom years.and private equity-focused directory that is constantly updated to include new firms and remove expired ones. Private equity headhunter.000" Tags: buyout starting salary. The following includes venture capital firms/funds. private equity analyst salary Link to This Resource: Private Equity Starting Salary http://privateequityblogger. The group worked to prevent legislation that would change taxes on private equity partnerships. private equity firms/funds and angel investors groups: PrivateEquity Directory:includes a recent list of 1. (Source: Forbes) Link to This Resource: Private Equity Lobbies Against Taxes http://privateequityblogger. From CNBC: "Korb said private equity is able to attract the cream of the crop – On average a new recruit who goes to a private equity firm receives $450. buyout recruiters had a lot of money to recruit with.252 private equity firms.html Private Equity Firms Directory There are a variety of private equity firms and many directories. so I've this list of directories and will be adding more in the near future. Brian Korb. private equity salary.com/2008/06/private-equity-lobbies-against-taxes. private equity starting salary.
Lee 310 | P a g e .html Top Private Equity Firms Here is a ranking of today's most powerful private equity firms. The Carlyle Group Texas Pacific Group Bain Capital Providence Equity Partners Apollo Advisors Warburg Pincus Cerberus Thomas H. mezzanine investors. for the full list with information on recent buyouts and management styles click here. Source links: DealBook.com/2008/06/private-equity-firms-directory_23.com/2008/06/morgan-stanley-hires-in-japan-to-build. The New York Times notes that Japan is the second-largest economy.Private Equity Info Directory: A comprehensive collection of directories to many investment avenues such as private equity. (Pricey subscription needed though. yet Morgan Stanley has not invested in the country since 2000 (buying eAccess Ltd). The Blackstone Group () Kohlberg Kravis Roberts & Co. NoBosh Link to This Resource: Morgan Stanley Hires In Japan to Build Private Equity http://privateequityblogger.html Morgan Stanley Hires In Japan to Build Private Equity Morgan Stanley has hired Yoshihiko Shigenari to head the private equity unit in Japan.) Link to This Resource: Private Equity Firms Directory http://privateequityblogger. and small business investment companies. This move signifies Morgan Stanley's revamping of their private equity division and suggests greater investment in a market left largely untapped by the company.
html Link to This Resource: Top Private Equity Firms http://privateequityblogger.html Private Equity Boom Buyout Boom Private equity has become an estimated three billion dollar industry. A private equity firm raises funds and invests in these securities following various strategies like venture capital.html Private Equity Firms Private equity is an asset class that includes equity securities of companies that are not traded publicly. but this was not the case just a few years ago. and in recent years the number of venture capital firms has fallen. 311 | P a g e .powerlist. Either of these options can generate big money for shareholders. capital and organization. the venture capital industry is shrinking dramatically. leveraged buyout or mezzanine capital.com/galleries/2007/fortune/0702/gallery.com/2008/06/top-private-equity-firms. This is generally a high-yielding stage for a company and therefore the private equity firm also benefits. A private equity firm will obtain a majority or influential minority stake in a company and use that position to restructure the management.com/2008/06/private-equity-firms. The anticipated outcome is an improved company that will translate into high returns for the firm through either: A merger or purchase: the company either fuses with another company or is bought by another company.cnn. Recapitalization: This is when cash is distributed the shareholders. IPO (Initial Public Offering): An IPO allows the public to purchase shares in the company.html The Venture Capital Decline According to the WSJ. Link to This Resource: Private Equity Firms http://privateequityblogger. The dot com bubble's burst led many to abandon the oncefertile venture capital industry.fortune/index.Link: http://money. The following is a video on the resurgence of private equity: Link to This Resource: Private Equity Boom http://privateequityblogger.com/2008/06/private-equity.
40 less than in 2006. The hope is that the capital provided to the company will help it grow to a point that it generates high returns to the venture capital fund's investors. for example a fund may focus on electronics and invest in emerging electronics companies.html Venture Capital Firms Venture capital firms are typically private partnerships funded by pension and endowment funds. companies was 844. This fund is operated by the venture capital firm which discovers promising startup and smaller companies to invest the fund's money in. The venture capital firm opens a fund.S. John Cook remarks on the effect on Seattle's venture capital industry. The purpose is to profit from the company's future success. pooling money from investors to expand smaller companies. venture capitalists.com/2008/06/venture-capital-firms_21. Starting a Fund A venture capital firm will attract investors and pool their money in a fund. there are important differences between the two. Risk Venture capital is naturally a risky business and venture capital firms suffer many failed investments.In 2007 the number of venture capital firms investing in U. If either a public offering where the public is able to buy shares of the company or an acquisition occurs then the fund cashes out. Although angel investors and venture capital funds serve a similar function. If the venture is a success the investors receive more money than their initial investment. there is a subtle decline in Seattle. Link to This Resource: The Venture Capital Decline http://privateequityblogger. These investors provide the capital that is necessary for getting a small company off the ground.com/2008/06/venture-capital-decline. Link to This Resource: Venture Capital Firms http://privateequityblogger.200 firms in 2000--during the dot com period. Venture Beat reports that in the first quarter of 2008 venture investment fell 8. Investing The firm or fund has an investment profile and invests accordingly. Another startling figure is that of these 844 firms. Although there are many high-profile venture capital firms in the region. amassing a substantial sum for the manager to invest. This year the industry has shown signs that the decline in venture capital firms will continue. Investors supply various amounts of money. corporations. The National Venture Capital Association's President Mark Heesen predicts even further decline in future.5%. but a company that succeeds often generates huge profits that overshadow other losses for the fund. Profits result from expansion through an initial public offering (IPO) or another company purchasing the company. 224 did not fund any new companies.html Angel Investors and Venture Capital Expanding startup companies hope to attract both angel investors and venture capital funds. 312 | P a g e . and largely wealthy individuals. This compares to the almost 1.
but venture capital funds also invest with the purpose of taking the company to the IPO stage and beyond. Attracting Investments: Angel investors vary in investment areas and act privately.com/2008/06/venture-capital-fund-management-fees. angel investors expect a slower. An angel investor's investment is used to expand the company to the size that attracts larger venture capital investments. Link to This Resource: Angel Investors and Venture Capital http://privateequityblogger. These events are a great opportunity for startup companies to meet interested potential investors. Venture capital funds generally focus on emerging sectors like technologies. Although some angel investors organize into networks or groups and pool investments. Link to This Resource: Venture Capital Fund Management Fees http://privateequityblogger. and have greater accountability for investments. Companies looking for angel investors or venture capitalists should regularly check for events like the November 3 & 4 Perfect Venture Conference IV. angel investors generally invest alone. which is smaller but limited to angel investors and venture capital.The key differences between angel investors and venture capital funds: By Definition: Angel investors are affluent. There are many various events listed there in many locations. This makes attracting angel investors seem easier than a venture capital fund's investment Expected Returns: Both angel investors and venture capital funds tend to expect high returns for their investments to counter the frequent losses. Investment Focus: Angel investors focus on the earlier stages of a company. A common arrangement is 2 and 20: every year the manager receives 2% of the capital invested and 20% of net profits of the fund. smaller return on investments than venture capital fund. In recent years venture capital funds have increased from the 20% arrangement to compensate for frequent failed ventures. Here is another calendar.html Venture Capital and Private Equity Events Here is the most comprehensive calendar of upcoming venture capital and private equity events.html Venture Capital Fund Management Fees Venture capital fund managers demand considerable payment for their services. mostly above $1 million. Investment Size: Angel investors typically invest under $1 million. Venture capital funds do invest in the earlier stages. drawing on numerous wealthy investors. private investors who invest in smaller companies. recieving an annual fees involving a share of the invested money and the success of the fund.com/2008/06/angel-investors-and-venture-capital. This is not a rule and often varies with different investors and companies. expanding the company with the angel's investment to a more marketable size toward venture capital funds. this fee is negotiated with investors in the contract. Venture capital fund managers are compensated similarly to hedge funds. A venture capital fund is different because it is a substantial pooled investment. Stereotypically. Link to This Resource: Venture Capital and Private Equity Events 313 | P a g e .
Nonetheless. Angel investors compensate for this by demanding a high percentage of any success. Similar to venture capital investments. The angel invests in the startup process and has a personal stake in the company's success.html Angel Investors Angel Investors Angel Investors Definition An angel investor is a wealthy individual who provides capital to an expanding small business.http://privateequityblogger. costing angel investors large sums of money. so many of the companies listed no longer exist and there are many companies that are not listed.html Venture Capital Firms 314 | P a g e .html Venture Capital Firms Directory vFinance offers a comprehensive directory of over 1. this directory is a great resource. An angel investor typically invests his own private money. Link to This Resource: Venture Capital Firms Directory http://privateequityblogger.com/2008/06/angel-investors.400 venture capital companies. Link to This Resource: Angel Investors http://privateequityblogger. but if the company is successful the possible returns are equally high. unlike collective venture capital funds. It provides a short summary of the company and its recent progress. Startup businesses often fail. Angel investors are an important way for small businesses to gather the capital necessary for major expansion. The only drawback is that it is a couple years old.com/2008/06/venture-capital-firms-directory. angel investors are vulnerable to a high risk of failure.com/2008/06/venture-capital-and-private-equity.
The hope is that the capital provided to the company will help it grow to a point that it generates high returns to the venture capital fund's investors. for example a fund may focus on electronics and invest in emerging electronics companies. corporations.html Top Venture Capital Firms The 2007 Entrepreneur list of the top 100 venture capital firms are ranked by the number of deals the firm made in 2006. This fund is operated by the venture capital firm which discovers promising startup and smaller companies to invest the fund's money in. venture capitalists. click here for the full venture capital firms list: Maryland Technology Development Corporation Draper Fisher Jurvetson Tech Coast Angels New Enterprise Associates Khosla Ventures Sequoia Capital Village Ventures Austin Ventures Band of Angels Omidyar Network 315 | P a g e . If either a public offering where the public is able to buy shares of the company or an acquisition occurs then the fund cashes out. Starting a Fund A venture capital firm will attract investors and pool their money in a fund.com/2008/06/venture-capital-firms. and largely wealthy individuals. but a company that succeeds often generates huge profits that overshadow other losses for the fund. pooling money from investors to expand smaller companies.Venture capital firms are typically private partnerships funded by pension and endowment funds. The purpose is to profit from the company's future success. Investors supply various amounts of money. The following are the top ten. The venture capital firm opens a fund. If the venture is a success the investors receive more money than their initial investment. Link to This Resource: Venture Capital Firms http://privateequityblogger. Risk Venture capital is naturally a risky business and venture capital firms suffer many failed investments. Investing The firm or fund has an investment profile and invests accordingly. Profits result from expansion through an initial public offering (IPO) or another company purchasing the company. amassing a substantial sum for the manager to invest.
html Venture Capital Venture capital typically refers money provided by investors to finance new businesses.com/2008/06/venture-capital.000 members! Private Equity Articles Private Equity MBA Private Equity Real Estate List Private Equity Conference Private Equity Real Estate Private Equity Forum Contact Details on 700+ Family Offices. Link to This Resource: Venture Capital http://privateequityblogger. An investor predicts that an emerging company has a high-growth potential and provides initial funding for the company. This is the goal of venture capitalists: to predict a company's success and provide necessary capital for the company's expansion. and then net a high return when the company succeeds.html Subscribe to: Posts (Atom) Join the Private Equity Group with over 20. the performance of the company effects the gains or losses for the investor.com/2008/06/top-venture-capital-firms. the investor is rewarded with a valuable share that he can retain or cash out for more money than the initial investment. Venture capital is classified as a private equity investment. investors offer cash in exchange for shares in the company.com 316 | P a g e . If the company does well on the other hand.Link to This Resource: Top Venture Capital Firms http://privateequityblogger. Like other traditional stock investments. Generally. There is a shared interest between venture capitalists and the small businesses. Excel-based Database FamilyOfficesDatabase. the investor's shares lose value. Businesses hoping to grow but lacking the necessary money look to venture capital as a way of funding growth. If the company does poorly.
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