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PE News from Around the Web- Private Equity: Country still a target May 16, 2012By Joe Leahy While 2011 marked a record for fundraising in Brazil's private equity industry, 2012 could be the year in which a larger number of deals are done. With markets in general subdued, including for initial public offerings, entrepreneurs and ...See all stories on this topic » […]
- Responsible Private Equity Investors Revitalizing US Manufacturing May 16, 2012Despite negative stories in recent years about "vulture" private equity investors, responsible private equity firms and their investors from union and state pension funds offered compelling accounts of their success in securing profitable returns on ...See all stories on this topic » […]
- Private equity: the good, the bad, and the Obama donors May 16, 2012by John Hayward Private equity firms are evil, right? President Obama certainly seems to think so. His campaign excoriated Mitt Romney's history of private equity investment in a web video earlier this week. On the very same day this web video was ...See all stories on this topic » […]
- Man Worst as Private Funds Trail Markets May 16, 2012By Sree Vidya Bhaktavatsalam on May 16, 2012 Man Group (EMG) Plc is leading declines among global investment firms as private-equity and hedge funds, the best-paid money managers, produce the worst returns for public shareholders.See all stories on this topic » […]
- California ranks third in private equity investment May 16, 2012By Mark Glover Private equity firms invested $16 billion in 214 California-based companies in 2011, placing the Golden State third among all states, according to an analysis released today by the Private Equity Growth Capital Council.See all stories on this topic » […]
- Private equity firm to buy Waupaca iron foundry May 16, 2012AP WAUPACA — A New York private equity firm plans to buy ThyssenKrupp Waupaca Inc., described by industry experts as the largest independent iron foundry in the world. KPS Capital Partners says it will rename the company Waupaca Foundry Inc. Financial ...See all stories on this topic » […]
- Private equity deals May 16, 2012Silver Creek Oil & Gas LLC, an Irving, Texas-based oil and gas E&P company, has secured $100 million in private equity funding from Crestview Capital and existing shareholder Sunray Capital. www.crestview.com.See all stories on this topic » […]
- Private Equity's Leading Limited Partners Convene to Discuss Investing and ... May 16, 2012By Dow Jones & Company NEW YORK, May 15, 2012 -- /PRNewswire/ -- Dow Jones will bring together institutional investors from global endowments, pension funds, family offices and fund-of-funds to share their perspectives on investing in private equity, ...See all stories on this topic » […]
- Private Equity: Country still a target May 16, 2012
Interview with Antoine Dréan on the future of Private Equity
In this Knowledge@Wharton interview, Antoine Dréan, founder, chairman and CEO of Triago, a private equity firm, discusses the future of the industry. The topics covered include where the big opportunities will arise, how returns are evolving, shifting fee structures and … Continue reading
Microfinance: Successes and Challenges
Jean-Philippe de Schrevel is CEO and co-Founder of BlueOrchard Investments, and also founder and CEO of Bamboo Finance and the Oasis Fund. His companies specialize in asset management and microfinance projects that target positive social impact and produce “market” returns … Continue reading
Private Equity Buys Time with Major Refinancings
In the boom years of 2006 and 2007, European and North American private equity firms acquired significantly larger businesses, financing the deals with record levels of debt. The borrowings often consisted of four- and five-year term loans. When the credit freeze followed the banking crisis in 2008, many predicted a flood of defaults when the “wall of maturity” arrived in 2011 and 2012. Fast-forward to today and it appears as if the industry has sidestepped a crisis. Most PE firms proactively addressed the problem by paying down debt, renegotiating terms, or turning to the high-yield bond market and other sources to refinance, extending debt maturity dates by several years. But that begs a new question: How will the industry fare if economic and sovereign debt problems in Europe and the United States drag on?
Private Equity: Fact, Fiction and What Lies in Between
What good is private equity, anyway?
As its critics see it, these investment pools make money the wrong way — buying “target companies,” slashing jobs, piling on debt and selling the prettied-up remnants, which by then are doomed to fail. To make matters worse, private equity firms get a stunning tax break, paying 15% on profits instead of 35%.
The Unexpected Early Winners of the Arab Spring
After toppling long-standing regimes, destabilizing others and grabbing the world’s attention, the Arab Spring’s protestors most likely remain amazed at the far-reaching effects of their actions in early 2011. Although their demands in Tunisia and Egypt were focused squarely on long-term economic and political betterment, they also had an immediate impact on investment prospects in two countries that are geographic bookends of the Middle East — Morocco and Iraq.
Intense Competition Is Transforming Private Equity’s Old Models
Private equity, like many industries, suffered major setbacks during the Great Recession. And while PE will continue to be profitable over the long run for well-managed firms, many others will find it difficult to hang on, according to Antoine Dréan, … Continue reading
Private Equity Defies the Odds with a Steady Recovery
Economies in Europe and North America are struggling to avoid another recession. Financial markets are shaky. Uncertainties overhang businesses as policy makers in both regions wrestle with nettlesome issues like government debt and regulatory models. In a troubled economic environment, it would be easy to assume the private equity (PE) industry is on the ropes. In fact, the industry continues its post-recession recovery, and private equity portfolios have outperformed public markets, a development largely attributed to the ability to create value during tough economic cycles as well as good ones. While the industry has suffered its share of setbacks, its recovery during the recession demonstrates that PE continues to represent a good option for investors seeking solid long-term returns, though perhaps not as solid as in the past.
India Equity’s Steven Wisch: Creating a Business Environment with the Best of Both Worlds
During his first stint in India, Steven Wisch, founder and managing partner of private equity firm India Equity Partners, was struck by the quality of the entrepreneurs there, even though at the time it was “a very tough place to do business.” In a conversation with India Knowledge@Wharton, Wisch discussed the lingering challenges and frustrations of the Indian market and what Indian companies and managers have to offer the world.
Building Foundations, and Confidence, in Colombia’s Private Equity Industry
For Colombia’s young private equity (PE) industry, the country’s decaying, investment-starved infrastructure is a call to action. Having grown from two funds in 2005 to a total of 20 today, industry players are on the collective lookout for investment gaps, like in infrastructure, that they are ready to fill. But regional competition is stiff and Colombia, still synonymous until recently with drug trafficking and violent clashes between leftist guerrillas and its military, has only a small portion of the region’s PE fundraising, and replicating the large deals of Latin America’s more mature markets won’t happen overnight.
Starting Up: The Urgent Need to Woo China’s Early-Stage Venture Capitalists
Like most in the under-30 crowd, China’s venture capital market is in a hurry. Since 1985, when the State Science and Technology Commission joined the Ministry of Finance to establish the country’s first venture capital firm — called China New Technology Startup Investment Company — some 2,500 private and state-run firms have sprouted up, according to Zero2IPO, a Chinese venture capital and private equity market research firm.









