Browsing: Equity Types of Private Equity

Contrasts between Venture Capital and Buyouts
Venture Capital Funds
Venture Capital Risks and Returns
Types of Buyouts
Leveraged Buyout

Equity Types of Private Equity

Venture Capital Top 100 List(s): GP and LP

Jun 18th, 2017 | Filed under: Equity Types of Private Equity, Newly Added, Private Equity, Private Investments, Venture capital

Preqin has named its top 100 Venture Capital firms, ordered by the amount of capital each firm has raised in the last 10 years. The top 10, with their headquarters city, are as follows: Tiger Global Management, New York New Enterprise Associates, Menlo Park Sequoia Capital, Menlo Park DST Global,Read More

New Zealand PE and VC Activity on the rise

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

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: Due Diligence Process, Newly Added, Private Equity, 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

Staying Private: A Contrary Push or a Weakening Pull?

Mar 12th, 2017 | Filed under: Newly Added, Private Equity, Private Investments, Venture capital

The number of public companies listed on U.S. exchanges peaked in 1996. Due to mergers on the one hand and de-listings on the other, factors far offsetting new initial public offerings, this number has fallen drastically since then, to less than half of peak. Part of the reason for thisRead More

EY on Real Estate Private Equity Trends

Feb 5th, 2017 | Filed under: Equity Types of Private Equity, Newly Added, Other Issues in Private Investments, Private Investments, Real Assets, Real Estate, Real Estate Equity Investments

The global real estate division of financial consultancy Ernst & Young recently published a report on the private equity outlook in the real estate space. As the head of the division, Mark Grinis, says in an introduction, the premise of the report is that success in this space requires managerialRead More

Funds of Funds and the Task of Financial Intermediation

Jan 12th, 2017 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Newly Added, Private Investments, Venture capital

Are funds of funds a valuable form of intermediation? Robert Harris, of the University of Virginia, Darden School of Business, and three other distinguished scholars looked at this question in a Darden Business School Working Paper, and they decided that, at least with regard specifically to the role of FOFsRead More

Cash Management Strategies for Private Equity

Jan 10th, 2017 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments

Private equity investors have a distinctive cash management question: what do they do with the money that has yet to be drawn or called? Keeping cash in pillow cases is, here as always, less than the optimal solution. One of the defining features of a PE firm is that anRead More

PE Study: Managerial Turnover is a Good Thing for Investors

Dec 26th, 2016 | Filed under: Industry Size & Managers, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, The A.I. Industry

A recent study by Franceso Cornelli and two associates indicates that there is a positive relationship, in the private equity industry, between managerial turnover and fund performance. Cornelli is Professor of Finance, London Business School, and a fellow at the Center for Economic Policy Research.  The other authors are: ElenaRead More

Private Equity Placements in China

Dec 8th, 2016 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Currencies, Emerging markets, Newly Added, Private Equity, Private Investments, The Global Economy & Currencies

A new paper by G. Nathan Dong and two other scholars investigates private equity placements in China and their consequences for the issuing firms. The study works from a natural experiment that resulted from regulations created by the PRC ten years ago. In 2006, the China Securities Regulatory Commission issuedRead More

Local and Global VC Need to Work Together for Best Results

Nov 27th, 2016 | Filed under: Newly Added, Other Issues in Private Investments, Private Investments, Venture capital

Thomas J. Chemmanur of Boston College, Carroll School of Management, and two other scholars looked into the issue whether local venture capitalists “play well together” with international VCs, and vice versa. The resulting paper, in the latest issue of the Journal of Business Venturing, suggest that entrepreneurs benefit by bringingRead More

Best Practices for Private Equity Sponsors in an Age of Increasing Scrutiny

May 23rd, 2016 | Filed under: Benchmarking & Performance Attribution, Newly Added, Other Issues in Private Investments, Performance, Analytics & Metrics, Private Equity, Private Investments, Risk management, Risk Management Strategies & Processes

By John Czapla, Parag Patel and Shane Newell, Valuation Research Corporation As the demand for transparency rises for private equity and hedge funds, the spotlight is increasingly focusing on valuation practices. There are an important number of reasons why the valuation process has become important, and they are essential forRead More

Wrangling the Unicorns: Yale celebrates their VC heroes

May 15th, 2016 | Filed under: Allocating to A.I., Endowments & Foundations, High-net-worth investors, Institutional Asset Management, Institutional Investing, Newly Added, Private Equity, Private Investments, Venture capital

Yale, in their 2015 annual report issued this month has broken out their private equity allocation into two distinct segments: Leveraged Buyouts and Venture Capital.  See: This is the first time in many years they’ve offered that level of detail.  And they’ve given the whole report a VC-and-entrepreneurial theme, supplementing theRead More

The Skorina Report: The ‘hoarding’ hoax, ‘excessive’ private-equity fees and other confusions

Nov 2nd, 2015 | Filed under: Equity Types of Private Equity, Private Equity, Private Investments

Guest columnist Charles Skorina looks at accusations of endowments "hoarding" money on one hand and paying "excessive" fees to private equity managers on the other. Is it time for an intervention?Read More

An Overview of Real Asset Investing

Aug 26th, 2015 | Filed under: Infrastructure, Intellectual Property, Private Equity, Real Estate, Risk management

Guest columnist Andrew Smith, CAIA, provides an overview of real assets and their commensurate risks and rewards.Read More

Alternative Investments By the Numbers: Top 5 2015 YTD Takeaways

Jul 23rd, 2015 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Liquid Alts, Performance, Analytics & Metrics, Private Equity

Guest columnist Andre Boreas takes a look at the alternative investment universe year-to-date 2015 by the numbers.Read More

SEC: KKR Misallocated ‘Broken Deal’ Costs

Jul 14th, 2015 | Filed under: Private Equity, Regulatory, Risk management

A recent SEC finding at the expense of KKR illustrates the risk inherent in non-allocation, or careless allocation, of broken-deal expenses, and illustrates that lawyers don't necessarily use the word "deceit" to mean what one might think it means. Read More

Hybrid Equity: Another Perspective on Private Equity

Jun 14th, 2015 | Filed under: Alpha Hunters, Alpha Strategies, Hedge Fund Industry Trends, Liquid Alts, Private Equity, Retail Investing

Managers who offer funds that provide shorter time frames to investment exits, greater liquidity through a hedge fund structure, and employ the event-driven skill set that identifies and manages an investment portfolio yielding private equity-like returns are finding increased interest from an investment community seeking returns married with reasonable liquidity. Read More

Tax & Election Seasons Create Alternative Altercations in the US

Apr 20th, 2015 | Filed under: Legislation/Court rulings, Partner accounting, Real Estate, Venture capital

As a general rule, politicians [mostly] on the Democratic side benefit by raising the issue of the taxation of carried interest during campaigns and then quietly letting it die, as their donors expect, when the legislature is actually working on tax bills. It's a way of signaling who is a "populist" and who isn't. Read More

Does Private Real Estate Actually Have a Low Correlation with Public Real Estate?

Mar 15th, 2015 | Filed under: Alpha Hunters, Alpha Strategies, Institutional Investing, Private Equity, Real Estate

Brad Case, Ph.D., CFA, CAIA, looks at the relationships between public and private real estate.Read More

After the Balkan Adventure: A Bad Bank Gets Worse

Mar 9th, 2015 | Filed under: Frontier markets, Private Equity

Over the weekend that began March, auditors in Austria found that the billions already invested in the wind-down of Heta, part of the nationalized Hypo Group, would not suffice for the orderly wind down of this "bad bank." A worse-and-worse bank, it appears. Read More

AIMA Reports: Activist Hedge Funds are the Good Guys

Mar 3rd, 2015 | Filed under: Hedge Fund Strategies, Private Equity, Regulatory

Activist investors usually aren't trying to take control of a company. And when they are, managers have strong existing tools to foil them. What activist investors can do is increase share value, over sustained periods.Read More

Financing For Knights in Shining, or in Sooty, Armor

Jan 29th, 2015 | Filed under: Private Equity, Regulatory, Risk management

There are certain deals that banks don't want to touch with the longest lance in a joust. That doesn't mean the deals don't get done: it means they go by default to the non-bank financiers. We look at the divide. Read More

Competing Bankruptcy Filings for Caesar’s: Third-Party Releases

Jan 25th, 2015 | Filed under: Insolvency, Legislation/Court rulings, Private Equity

A legal donnybrook has begun for control of Caesar's assets. An important side issue involves bankruptcy court treatment of non-debtors seeking release from alleged liabilities of their own, and a split amongst the appeals court circuits over such treatment. Read More

How Bad is the Cash Drag on Open-End Private Equity Real Estate Funds?

Jan 22nd, 2015 | Filed under: Private Equity, Real Estate

Guest columnist Brad Case, Ph.D., CFA, CAIA, examines the effects of cash drag on open-end private equity funds.Read More

Does Leverage Have a Positive or Negative Effect on Private Equity Real Estate Investments?

Dec 14th, 2014 | Filed under: Private Equity, Real Estate

Guest columnist Brad Case, Ph.D., CFA, CAIA, explores the effects of leverage on private equity real estate investments.Read More

Business Development Companies: The Basics

Nov 20th, 2014 | Filed under: Liquid Alts, Private Equity

Guest columnist Andrew Smith, CAIA, traces the history of Business Development Companies.Read More

The Building of an Infrastructure for Renewables: A Report

Nov 5th, 2014 | Filed under: Alternative energy, Commodities, Infrastructure, Private Equity, Socially responsible investing

In 2012, [as the crude oil price was settling in to $110 and low vol,] the renewables’ infrastructure space for private funds reached an aggregate estimated deal value of $132 billion. In 2013, that fell to $95 billion. It now seems unlikely that 2014 will match last year. Read More

Old-Line Oil and Coal are Techno and Exciting These Days

Oct 1st, 2014 | Filed under: Alternative energy, Energy, Venture capital

Revolution is underway in the energy world. For investors, one of the most unexpected facts about this revolution is that it permeates precisely those portions of the energy sector long thought sleepy and conventional: the fossil fuels. Read More

Key Alpha-Oriented Law Firms Merging

Sep 29th, 2014 | Filed under: Alpha Hunters, Private Equity

Yes, law firms that serve alpha hunters are consolidating. But don't take it personally, HF or PE managers. This isn't about you. It's about them. And it isn't necessarily a bad thing. Read More

Celent Reports on Equity Crowdfunding

Sep 23rd, 2014 | Filed under: Crowdfunding, Retail Investing, Venture capital

A new report from Celent discusses the as-yet unimplemented Title III of the JOBS Act. Celent's Isabella Fonseca offers suggestions for how both wealth managers and tech providers might benefit. Read More

Complications in Regards to Accessing Private Equity Funds

Sep 1st, 2014 | Filed under: Alpha Strategies, Private Equity

Guest columnist Andrew Smith, CAIA, looks at the complications involved in accessing private equity funds.Read More

Preqin on PE Distributions & Call-Ups in 2013

Aug 18th, 2014 | Filed under: Alpha Hunters, Alpha Strategies, Private Equity, Venture capital

The 2013 performance of the private equity industry, given any of several metrics, was quite strong. Why? In part because the exit environment has been very good. Read More

Deal Activity: Beer and Obamacare Both Factor In

Jul 16th, 2014 | Filed under: Alpha Hunters, Private Equity, Technology

Intralinks’ report suggests that “a handful of fundamental and positive shifts” are at work in the recent uptick in M&A activity. On a behavioral note: corporate confidence is returning, and presumably confident managements are more likely to seek out acquisition targets than are nervous managements. Read More

Questions in Risk: The Different Faces of Private Equity Investing

Jul 2nd, 2014 | Filed under: Private Equity, Risk management

Guest columnist Donna Howe, CFA, looks at the different aspects of private equity and the associated risks.Read More

EDHEC: Investors Who Don’t Want to be Mushrooms Need Benchmarks

Jun 16th, 2014 | Filed under: Infrastructure, Private Equity

Investors need benchmarks, especially benchmarks of likely infrastructure return, because the long-term illiquid nature of that investment increases information asymmetry between investors and managers, whereas benchmarks keep this asymmetry bearable. So explains Frédéric Blanc-Brude of EDHEC. Read More

Carried Interest Loophole: A Possible Twist in the Old Debate

Jun 10th, 2014 | Filed under: Private Equity, Venture capital

As always, government wants revenue, and by what is now a reflex action heads have turned to the issue of carried interest. Faille speculates that little, if anything, will happen at the federal level, but that we may soon see a shift in the location of the action. Read More

The Morgans Hotel Group Fight: Part Two

Jul 14th, 2013 | Filed under: Private Equity, Venture capital

Yucaipa has filed a federal lawsuit that accuses OTK of deceiving the shareholders of Morgans Hotel by misrepresenting the recommendations of two shareholder advisory services. As a legal argument this is ... surprising. Read More

The Morgans Hotel Group Fight: Part One

Jul 11th, 2013 | Filed under: Private Equity, Venture capital

The holding in Kalisman v. Friedman says that there are limits to what the majority of the board can do to keep its dissident isolated and in the dark. That is the right way to grow mushrooms, not the right way to treat a fellow director. Read More

Preqin on Global Alternative Assets and Learning Curves

Jun 4th, 2013 | Filed under: Hedge Fund Industry Trends, Private Equity

The pattern with respect to allocations by institutional investors to hedge funds since 2009 is somewhat different from that of allocations to private equity. As Preqin’s report explains, many institutions have long been familiar with hedge funds, their learning curve has flattened out so to speak, and they have established a target allocation for hedge funds considered as an asset class.Read More

Part III: The Future of Venture Capital: A New Path to Growth

May 28th, 2013 | Filed under: Alpha Seekers, Alpha Strategies, Private Equity, Venture capital

Guest columnist John Bhakdi looks at the future of venture capital in this final segment of a three-part series.Read More

Part II: Structured Seed Capital: Capturing Technology Start-ups In Optimized Clusters

May 27th, 2013 | Filed under: Alpha Strategies, Private Equity, Venture capital

Guest columnist John Bhakdi looks at structured seed capitalRead More

Part I: Nuggets vs. Pioneers: Is Venture Capital Dying?

May 23rd, 2013 | Filed under: Venture capital

In Part I of a three-part article, guest columnist John Bhadki looks at the health of venture capital.Read More

Ernst & Young Recall Jamesian Philosophy

Apr 29th, 2013 | Filed under: Private Equity

Recent and ongoing transformations in the PE industry and its institutional contexts have created a demand for a more robust infrastructure: mid or back-office functions are the weight-bearing beams of PE firms.Read More

Study: Diversification is Good for Your PE Allocation Too

Apr 14th, 2013 | Filed under: Private Equity

A new paper in the Journal of Investment Management claims that five sophisticated high-profile institutions could have made better use of the PE portion of their portfolios over the period 1999 to 2010 had they applied the insights of the founder of modern portfolio theory, Harry Markowitz. Read More

Private Equity: Problems and Disconnects

Feb 21st, 2013 | Filed under: Private Equity

If PE managers want to raise money in the present environment, they have to be very clear with their potential investors about how their strategy will work, and they have to pay attention to what those investors are trying to tell them. Further, it might help if neither side in that equation pays too much attention to consultants.Read More

On Not Using the Phrase ‘New Normal’ Here

Sep 26th, 2012 | Filed under: Asset allocation, Institutional Investing, Private Equity, Real Estate, Venture capital

Acceptance of the higher levels of volatility as a fact of life means that careful ongoing attention to risk has become the means of operations. In the United States specifically, 31 percent of institutions say that they monitor their risk budget daily to keep the overall amount of risk in the portfolio under check: more than half (53 percent) say that they do such monitoring on a weekly or monthly basis.Read More

Jean-Paul Sartre Comments on New Asian PE Boom

Sep 10th, 2012 | Filed under: Private Equity

There is good news to report about the renewal of PE activity in the Asia-Pacific region in 2011, and the new McKinsey paper reports it. One potential worrying sign, though, is that in some areas, notably Southeast Asia and India, businesses aren't exiting the PE market for the public world. Indeed, Southeast Asia recorded no initial public offerings at all in 2011.Read More

Kauffman Hits VC Returns, LP Dupes, and J Curve Mythology

Aug 29th, 2012 | Filed under: Alpha Strategies, Institutional Investing, Private Equity, Venture capital

In a study of its own portfolio the Kauffman Foundation found that only twenty of 100 venture funds “beat a public-market equivalent by more than 3 percent annually”.Read More

The Skorina Report: A Conversation with Srini Pulavarti

Aug 1st, 2012 | Filed under: Institutional Investing, Venture capital

Charles Skorina talks to Srini Pulavarti about the role of the outsourced CIO for endowments.Read More

McKinsey: Allocations Will Rise Despite Sticky Fees

Jul 31st, 2012 | Filed under: Alpha Strategies, Asset allocation, Private Equity, Real Estate

The reason for the increased interest in alternatives, McKinsey says, isn’t that the alternatives’ managers are slashing the price of their services. It is, rather, a discontent with the return to be gained from traditional investment. “Even with downward pressure likely over the next few years, revenue yields for institutional alternative products should remain well above the 35 bps average earned on today’s traditional institutional products.” Read More