Browsing: private equity

Posts Tagged ‘ private equity ’

Public to Private LBOs and Innovation

May 21st, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Regulatory Environment, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new study considers the proposition that indebtedness can reduce innovation. It offers support for the view that indebtedness in a particular context reduces patent flow. But whether patent flow should be considered a good surrogate for innovation remains open to question. An argument that has long been aimed atRead More


The ‘Vortex of Volatility’ and the Merger Market  

May 16th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

Intralinks, the provider of inter-enterprise collaboration products that is perhaps best known for its Deal Flow Predictor, recently interviewed Paul Aversano, a managing director at the consultancy Alvarez & Marsal. Aversano leads A&M’s private equity services practice, and he is the global practice leader of the transaction advisory group. HeRead More


‘There You Go Again’

May 6th, 2019 | Filed under: Newly Added, What about beta?, Private Equity, Debt Types of Private Equity, Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Alternative Investments in Context, Private Investments

By Bill Kelly, CEO, CAIA Association This now famous line was uttered by then citizen Ronald Reagan almost 40 years ago in a presidential debate with the incumbent Jimmy Carter. It was a simple and clever turn of a phrase acting as a counter-punch to Carter’s excoriation of Reagan’s priorRead More


McKinsey on Mainstream Private Markets

Apr 22nd, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Equity Types of Private Equity, Alternative Investments in Context, Private Investments

The 2019 edition of McKinsey’s annual review of private investment markets is now available. One of the themes of the new edition is that private markets have gone mainstream. Since 2002, private equity’s net asset value has grown twice as fast as global public equities. Looking at that growth fromRead More


The Illiquidity Premium and the Market for Private Assets

Apr 14th, 2019 | Filed under: Newly Added, Real Estate, Private Equity, The A.I. Industry, Debt Types of Private Equity, Liquid and Fixed Income Real Estate, Asset allocation, Equity Types of Private Equity, Asset Allocation Models, Other Issues in Private Investments, Operationally Intensive Real Assets, Private Investments, Real Estate Equity Investments, Real Assets, Finance & Economics

The illiquidity premium is one of the most frequently discussed and hotly disputed subjects in financial economics. Speaking broadly, an investment is not a checking account. One generally cannot just “get the cash back” at a moment’s notice, by visiting some equivalent of an ATM. How long will it takeRead More


Private Equity: The Power of Buy-and-Build

Mar 12th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Types of Private Equity, Private Investments

Bain & Co., the Boston-based consultancy, has put out its annual report on the global private equity industry. This report begins with the observation that over the last five years PE returns “have slowly declined toward public market averages.” It attributes this to a convergence of factors, including high assetRead More


Pension Funds Not Quite Swamped by ‘Grey Tsunami’

Mar 5th, 2019 | Filed under: Newly Added, Real Estate, Private Equity, Hedge Fund Strategies, Infrastructure, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Institutional Investing, Asset allocation, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Natural Resources and Land, Asset Allocation Models, Commodities, Operationally Intensive Real Assets, Institutional Asset Management, Macro and Managed Futures Funds, Private Investments, Real Estate Equity Investments, Real Assets, Allocating to A.I.

A recent study of public employee retirement systems in the United States reaches conclusions, that, after a fair amount of “grey tsunami” alarmism in recent years, sound reassuring. The study, based on a recent survey of system managements conducted by the National Conference of Public Employee Retirement Systems (NCPERS) inRead More


Defined Contribution Schemes in Britain: Encouraging a Broader Portfolio

Feb 28th, 2019 | Filed under: Newly Added, Consultants, Private Equity, The A.I. Industry, Institutional Investing, Alpha Strategies, Hedge Funds, Equity Types of Private Equity, Institutional Asset Management, Private Investments, Allocating to A.I.

Britain’s All-Party Parliamentary Group on Alternative Investment Management has published a paper on the country’s pensions. It’s focus is defined contribution schemes especially and the demographic strain they face, and the prospect of their moving more heavily into alternative assets and strategies in response. Defined benefit schemes “have some freedomRead More


Women in Alternative Investments: ‘Leveraging Diverse Perspectives’

Feb 10th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Institutional Investing, Venture capital, Hedge Funds, Institutional Asset Management, Private Investments

“With change happening at an unprecedented pace, it is fitting that alternative investment firms are strategically focused on leveraging diverse perspectives in these disruptive times,” says KPMG Chairman and CEO Lynne Doughtie, “The Call to Act,” a new paper that looks at the roles of women in the alternative investmentRead More


Finance Lessons from the Aftermath of Sherman’s March

Feb 7th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Private Investments

In the closing months of 1864, General William Tecumseh Sherman and his army marched notoriously “to the sea,” from Atlanta to Savannah. In the opening weeks of 1865, Sherman followed this up with his “Carolinas campaign,” again working to destroy the productive infrastructure, in a path that took him toRead More


Top 5 Alpha Stories of 2018

Dec 30th, 2018 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Regulatory Environment, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Emerging Alternative Investments, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, Private Investments

Five stories stand out as the dominant stories for and about pursuers of alpha in the year just passed. There is nothing arbitrary about the list below. We admit, though, that the order in which we present them is arbitrary: that is, it is not a ranking, and it isRead More


Jeff Diehl: The View from SuperReturn Japan 2018, Part II

Dec 6th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Alternative Investments in Context, Private Investments

On Dec. 6, in Tokyo, Japan, the SuperReturn Japan 2018 event concluded. CAIA was a sponsor of this event, which was billed as “the world’s gateway to Japanese private equity and venture capital.” This is the second part and conclusion of our interview with Jeff Diehl, managing director at AdamsRead More


Jeff Diehl: The View from SuperReturn Japan, Part I

Dec 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Economics, Private Investments, Frontier markets, Macroeconomics, Finance & Economics

On Wednesday, December 5, in Tokyo, Japan, the SuperReturn Japan 2018 event convenes. CAIA is a sponsor of this event. Jeff Diehl, managing partner at Adams Street Partners, a multi-national investment manager with more than $35 billion in assets under management, is attending. He will participate in a panel WednesdayRead More


EYES ON THE ALTERNATIVE INVESTMENT PRIZE: 4 THEMES FOR 2019

Nov 28th, 2018 | Filed under: Newly Added, Hedge Fund Industry Trends, Private Equity, Venture capital, Hedge Funds

By Diane Harrison We’ve reached that time of the year again, when prognosticators are producing all manner of publications centering on how the 2019 investment landscape will likely take shape. Robeco issued a white paper in October, ‘Turbulence Ahead: Investment Outlook 2019,’ in which they state ‘…next year we expectRead More


EY Reports on Alternative Investments and Artificial Intelligence

Nov 13th, 2018 | Filed under: Newly Added, Hedge Fund Industry Trends, Private Equity, Hedge Fund Strategies, The A.I. Industry, Risk management, Hedge Funds, Private Investments

The twelfth annual report of what used to be known as the EY Global Hedge Fund Survey has been re-christened the EY Global Alternative Fund Survey. As it has under the earlier name, EY again records the views of fund managers and investors around the globe on a wide rangeRead More


Avoiding Over-Allocation to Alternative Investments

Nov 6th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Institutional Investing, Risk management, Asset allocation, Hedge Funds, Asset Allocation Models, Risk Metrics and Measurement, Institutional Asset Management, Private Investments, Risk Management Strategies & Processes

A new white paper from New York Life looks at the role of alternatives in portfolio construction and argues that usual risk-return based approaches can underestimate risk and lead to over-allocation to the alternatives. The paper, by Amit Soni, an NYL portfolio manager, proposes a new method “to quantify performanceRead More


A Preqin Prequel? 

Nov 5th, 2018 | Filed under: Newly Added, What about beta?, The A.I. Industry, Industry Size & Managers, Private Investments, Real Assets, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association In the world of cinema, by most accounts, it is The Godfather Part II that holds the top spot for best movie prequel. Interestingly, by design and title, it is also a sequel. Sequels at the box office are often panned but this production wasRead More


Volatility & Creative Destruction: Some Pieces of the Larger Puzzle

Nov 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Hedge Funds, Private Investments

The President’s Letter at the start of the latest Investment Quarterly from Neuberger Berman, the investment management spin-off from the late Lehman Brothers, looks at US stock market volatility through October, and fits it into the broader business-cycle picture. President (and CIO) Joseph Amato observes that optimists will look atRead More


Intralinks/Global Fund Media Survey of LPs Shows Satisfaction

Sep 25th, 2018 | Filed under: Newly Added, Real Estate, Private Equity, The A.I. Industry, Debt Types of Private Equity, Liquid and Fixed Income Real Estate, Institutional Investing, Hedge Funds, Equity Types of Private Equity, High-net-worth investors, Other Issues in Private Investments, Endowments & Foundations, Institutional Asset Management, Private Investments, Real Estate Equity Investments, Family Offices, Real Assets, Allocating to A.I.

Intralinks has once again collaborated with Global Fund Media in a survey of limited partners on their satisfaction with recent results and on how they see global investment opportunities near-term. As to satisfaction: 18% of LPs say that their results from alternative investments have been better than they expected. ARead More


(IRR)ational Aggregation

Sep 10th, 2018 | Filed under: Newly Added, What about beta?, Real Estate, Private Equity, Debt Types of Private Equity, Equity Types of Private Equity, Private Investments, Real Estate Equity Investments

By Bill Kelly, CEO, CAIA Association Many of us have had the experience of buying a home and often turn to the bank to provide some level of secured funding for that purchase. Banks, of course, require documentary evidence for the value of their collateral which, invariably, results in a market-based appraisal process resultingRead More


Pitchbook 2018 Report: Where are the unicorns?

Sep 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Debt Types of Private Equity, Venture capital, Angel investing, Other Issues in Private Investments, Private Investments

PitchBook has posted its 2018 VC Unicorn Report. The introduction explains the meaning of the term. (It has only been in use in its financial sense since 2013, so explanations may still be deemed necessary.) “Unicorn” refers to an entity upon which the private investment markets have bestowed a valuationRead More


HBS looks at 40 years of private equity performance

Sep 3rd, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

In a new study by Harvard Business School scholars looks into the performance of LPs invested with private equity over four decades. In the paper, Investing Outside the Box, the scholars found that it is generally better to invest inside the box. Specifically, they found that the performance of alternativeRead More


Making Sense of Private Credit Funds

Aug 26th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Debt Types of Private Equity, Asset Managers, Private Investments

A new study takes what is called a “first look” at the aggregate performance of private credit funds. Using data going back to 2004, the authors (two of whom are affiliated with Adams Street Partners) determine that private credit funds “have performed about as well, or better than, leveraged-loan, high-yield,Read More


Agtech Investment and the Future of Food

Aug 14th, 2018 | Filed under: Newly Added, Private Equity, Agriculture, The A.I. Industry, Venture capital, Farmland, Equity Types of Private Equity, Natural Resources and Land, Angel investing, Private Investments, Real Assets

Finistere Ventures, a venture capital firm that describes itself as in the business of helping “ambitious founders transform food and agriculture,” has teamed up with Pitchbook to produce a dataset that would enable “clear insights into financing activity and metrics in the agtech sector.” The result was the Agtech InvestmentRead More


European Private Equity Activity Increases in Q218

Aug 7th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Equity Types of Private Equity, Private Investments

Pitchbook has a new report out about private equity activity in Europe. It indicates that, despite a slow start to the year, PE deal activity picked up notably in the second quarter. Across the continent there were 804 deals 2Q with a total valuation of  €88.5 billion. Deals above the Read More


Private (In)equity 

Jul 30th, 2018 | Filed under: Newly Added, What about beta?, Private Equity, The A.I. Industry, Equity Types of Private Equity, Private Investments

By Bill Kelly Private equity is quite simply capital not listed on a public exchange (props to Investopedia). This is certainly an apt description but as this asset class moves toward greater maturity, corresponding levels of responsibility and transparency must be ramped up too. Uninvested capital has reached dizzying heights which can only mean (on average) higher entry multiples, downward pressure on returns, lessRead More


The Problem With Unicorns

Jul 17th, 2018 | Filed under: Newly Added, Private Equity, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new book by the Wall Street Journal’s John Carreyrou, Bad Blood: Secrets and Lies in a Silicon Valley Startup, works as a compelling test case in how the hunger for the next “unicorn,” a hunger that has been a feature in alternative investing for years now, can go badlyRead More


Pension Funds, ‘Tilt,’ and Underperformance

Jul 1st, 2018 | Filed under: Newly Added, Performance, Analytics & Metrics, Institutional Investing, Benchmarking & Performance Attribution, Institutional Asset Management, Allocating to A.I.

Christina Atanasova and Gilles Chemla have posted a discussion of pension plans,where holdings show a tilt toward private equity and real estate investments. Atanasova is associate professor of finance, Beedie School of Business,  Simon Fraser University in Burnaby, BC, Canada.  Chemia is professor of financial at Imperial College Business School, London,Read More


What has private equity done for state pension funds lately?

Jun 14th, 2018 | Filed under: Newly Added, Private Equity, Debt Types of Private Equity, Equity Types of Private Equity, Institutional Asset Management, Private Investments, Allocating to A.I.

Los Angeles-based Cliffwater LLC has recently updated a report it prepared a year ago on how state pension systems have fared by way of their investments in private equity. The report as updated finds that PE created on average a 10.7% annualized return across 21 state pensions over its 16-yearRead More


Africa Still Rising (but Patience May Be Required)

Jun 12th, 2018 | Filed under: Newly Added, Private Equity, Emerging Alternative Investments, The Global Economy & Currencies, High-net-worth investors, Emerging markets, Private Investments, Other Topics in A.I.

The Emerging Markets Private Equity Association, in a new report, suggests that the “Africa Rising” narrative of a few years ago is behind us. Africa is seen still as having enormous potential. But the report also says, “the commodity downturn of the last several years has had a severe impactRead More


Closing the Gender Gap in Alternative Investments

May 29th, 2018 | Filed under: Newly Added, The A.I. Industry, Industry Size & Managers, Asset Managers, Other Topics in A.I.

The Emerging Market Private Equity Association (EMPEA) has announced its first initiative aimed at closing the gender gap, which it calls its Gender Parity Acceleration Working Group. EMPEA has 300 member firms, including both general partners and limited parties, who are invested in more than 130 countries around the globeRead More


The VC and PE Markets in Canada

Apr 1st, 2018 | Filed under: Newly Added, Private Equity, Venture capital, Equity Types of Private Equity, Private Investments

The Canadian Venture Capital and Private Equity Association (CVCA) has posted what it calls an “overview” of the VC and PE Markets in that country in 2017. It reports growth in both of those markets, although growth at distinct velocities. The report tells us that, on the VC side, CanadaRead More


The PE Lifecycle Can Be Audited by Blockchain

Mar 27th, 2018 | Filed under: Newly Added, Emerging Alternative Investments, Digital currencies, Other Issues in Private Investments, Private Investments, Other Topics in A.I.

On March 19, Northern Trust announced that it has enhanced its blockchain technology for private equity to the point where it can be employed by auditors. The audit firm can have its own blockchain node, which will enable access to real-time fund data. Pete Cherecwich, who runs Corporate & InstitutionalRead More


Central Europe as seen by private equity managers

Mar 20th, 2018 | Filed under: Newly Added, Private Equity, Private Investments

Deloitte has recently posted the results of its survey of how private equity managers see central Europe. A very concise summary of the findings of the survey is this: the PE industry expects that it will be buying CE assets in the coming months, and that it will be borrowingRead More


Preqin on the PE Outlook

Mar 8th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Types of Private Equity, Private Investments

Preqin has issued a report on the near term outlook for private equity based on a recent (November 2017) survey of more than 350 PE firms around the globe. Asked what is the biggest challenge facing them in the coming months, the most common response was: high company valuations. TheRead More


PE Funds and the Causal Arrow

Feb 18th, 2018 | Filed under: Newly Added, Debt Types of Private Equity, Equity Types of Private Equity, Private Investments

A new report published by the Copenhagen Business School looks into the consequence of private equity investment on an industry-by-industry basis. The authors find that “industries where private equity funds invest grow more quickly [than others] in terms of total production and employment, and appear less exposed to aggregate shocks.”Read More


PE and VC Opportunities in 21st Century India

Feb 13th, 2018 | Filed under: Newly Added, Private Equity, Currencies, Venture capital, Equity Types of Private Equity, The Global Economy & Currencies, Private Investments, Finance & Economics

ARA Law, a firm based in Mumbai and Bangalore, India, has issued a paper on private equity and venture capital in that country. In a foreword, firm founder Rajesh N. Begur observes that there is a positive dynamic now at work in India’s economy, one that in his view “canRead More


Stockholder Inspection Rights Survive Challenge in Delaware

Jan 16th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Regulatory Environment, Equity Types of Private Equity, Private Investments

On December 29, 2017, the last business day of the expiring year, the Delaware Chancery Court, in a memorandum of opinion by Vice Chancellor Slights, upheld stockholders’ statutory books-and-records inspection rights against a defendant corporation that sought to invoke and considerably to widen the scope of the Delaware Supreme Court’sRead More


The Performance of Impact Investments

Dec 26th, 2017 | Filed under: Newly Added, Social investing, Socially responsible investing, Other Topics in A.I.

The Global Impact Investing Network has offered its own take on a much discussed question: do “impact investing” and its variants under various names – sustainable investing, socially conscious investing, ESG investing, etc. – work? And, if so, how well? It looks at this question in a very granular way,Read More


Blackstone Looks at the Secondary Private Equity Market

Dec 19th, 2017 | Filed under: Newly Added, Private Equity, Private Investments

An October paper put out by Strategic Partners Fund Solutions, of Blackstone, argues that (despite risks and drawbacks) investing in the secondary private equity market  can still be a smart play, offering “accelerated returns with lower volatility, lower loss rates, and greater downside protection” than the primary market. The secondaryRead More


Bain on Dry Powder and High Asset Prices

Dec 3rd, 2017 | Filed under: Newly Added, Private Equity, Other Issues in Private Investments, Private Investments

Bain & Co., a consultancy to the private equity industry, has issued its Global Private Equity Report 2017. One central theme of the report is that prices of desired assets aren’t merely high, they are “structurally high,” and thus likely to remain so. They are high because there is aRead More


Selecting an Optimal Private Equity Fee Validation Methodology

Nov 20th, 2017 | Filed under: Newly Added, Private Equity, Private Investments

By Alex Tarantino These are good times to be a private equity fund investor.  Returns have been strong with distributions on the rise, both in the U.S. and Europe. Limited partners, for their part, have voted with their wallets that the asset class will continue to outperform. Indeed, fundraising continuesRead More


Transparency in Alternative Investing

Aug 24th, 2017 | Filed under: Newly Added, Risk management, Risk Management Strategies & Processes

In February of this year, the Economist Intelligence Unit surveyed 200 senior asset managers and institutional investor executives to learn what factors are most important in the way they make their decisions. Several different types of institution were involved, including hedge funds, private equity firms, insurance companies, and nonprofits. Also,Read More


Real Estate Tops the Willis Alternative Investment League Table

Aug 10th, 2017 | Filed under: Newly Added, The A.I. Industry, Industry Size & Managers, Hedge Funds

Willis Towers Watson (NASDAQ: WLTW) recently posted its Global Alternatives Survey. WLTW is a consultancy with a long history, roots going back to 1828, and that now has 40,000 employees serving clients in 140 countries. The gist of its new report is that the alternatives asset industry has grown toRead More


Pension Funds’ Portfolio Decisions: The Dutch Data

Jun 11th, 2017 | Filed under: Newly Added, Institutional Investing, Institutional Asset Management, Allocating to A.I.

DeNederlandscheBank (DNB) issued a working paper this spring about the impact of liquidity and capital constraints on defined benefit pension plans. The paper has three authors, Dirk Broeders, Kristy Jansen, and Bas Werker. The first named author, Broeders, is the only one formally affiliated with DNB. The others are affiliatedRead More


New Zealand PE and VC Activity on the rise

Jun 6th, 2017 | Filed under: Newly Added, Private Equity, Venture capital, Equity Types of Private Equity, Private Investments

An increase in total buy-out investments proved a big factor in the growth through 2016 of the private equity and venture capital market in New Zealand. A new report looks at this growth and concludes that fund-raising activity there has reached a milestone, hitting again a levels not seen sinceRead More


Risk Management Isn’t Just Fund Selection

Apr 27th, 2017 | Filed under: Newly Added, Private Equity, Due Diligence Process, Private Investments, Risk Management & Operations

New Strategies for Risk Management in Private Equity, a new book from Private Equity International, is an anthology of papers on the titular subject. It is edited by Dr. Ivan Herger to offer investors in PE new perspectives on the field. Herger, a managing director at Capital Dynamics, has aRead More


Private Equity Alpha and a Disappearing Act

Mar 16th, 2017 | Filed under: Newly Added, Other Issues in Private Investments, Private Investments

Kyle Welch, an assistant professor of accountancy at George Washington University School of Business, has issued an unusual challenge to two of the standard claims made on behalf of the private equity industry in a recent paper. Welch’s paper claims that “the alpha associated with private equity firms disappears afterRead More


6 Thoughts About the Alternative Credit Market

Mar 9th, 2017 | Filed under: Newly Added, Debt Types of Private Equity, Private Investments

BNY Mellon has put out a new white paper about the alternative credit market, that is, about debt funds and the space where they dwell. The paper looks at six points: macro background; investor demand; supply-side response; regulatory context; managerial difficulties; and the role of service providers. This precis willRead More


DC Sponsors and PE General Partners: A Good Marriage?

Feb 7th, 2017 | Filed under: Newly Added, Institutional Investing, Other Issues in Private Investments, Institutional Asset Management, Private Investments, Allocating to A.I.

The British Private Equity & Venture Capital Association, in a new paper, contends that private equity has a valuable part to play in the portfolios of defined contribution schemes, for the simple reason that the PE world offers high returns in an era of low interest rates. To make thatRead More