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In this special report, speakers from the Wharton Private Equity and Venture Capital Conference 2014 note that weaker-than-expected economic growth may have the virtue of uncovering some diamonds in the rough for private equity and venture capital investors.
Some $200 billion of new capital went to private equity and venture capital management partnerships globally in 2012. For the first time, 20% of that total — some $40 billion — went to fund managers in emerging market countries overall and only $15 billion went to the BRICS. The 2013 Wharton Private Equity Review, sponsored by EY, explores this major shift in articles based on the 2013 Wharton Private Equity & Venture Capital Conference. Also included are articles that look at: U.S. regulatory developments in PE; how one company helped to recapitalize a troubled Irish bank, and how PE helps to create value more generally.
Tough economic conditions in Europe and the United States, stiffer competition and tight credit continue to tamp down growth in the private equity (PE) industry. But successful firms are still uncovering opportunities. Today, that often involves longer-term investments with a focus on bringing new talent to under-managed portfolio companies. More PE firms are also looking to Asia for opportunities, including investments in small- and medium-sized enterprises. In this special report, based on the 2012 Wharton Private Equity and Venture Capital Conference, as well as additional research, Knowledge@Wharton looks at new directions in PE.
The financial meltdown of 2008-2009 and the resulting global recession dealt a painful blow to private equity investing, and the industry is still recovering. In this special report, based on the 2011 Wharton Private Equity and Venture Capital Conference, Knowledge@Wharton examines the industry’s gradual comeback.
Private equity investors saw record yearly earnings in the boom years of 2005 to 2008 as easy access to financing led to ever-larger leveraged deals. Then it all came to a halt with the global financial meltdown. In 2009, PE firms with reasonable liquidity weathered a tough year as many put their portfolio companies through rigorous restructurings. This year, talk is slowly turning from retrenchment to opportunity, at least in the U.S. and Asia.
Private equity firms will see unprecedented challenges over the next few years, given the depth and duration of the current financial crisis. In this special report, produced in cooperation with the Wharton Private Equity Club, Knowledge@Wharton looks at how markets are shifting and what participants can expect in the coming months.
While the credit crunch has put a damper on headline-grabbing large buyouts, private equity firms have found other ways to discover value in the current market. In this report, Knowledge@Wharton looks at how funds are adapting to changes in the credit environment, what opportunities exist in the developed markets of Europe and Japan, and the ways that proposed changes in taxation may affect the industry. Also included is a roundtable discussion on setting up a first-time fund in the current market, as well as an interview with David Rubenstein, co-founder and managing director of The Carlyle Group.
he race for deals is on in private equity. Gone are the days when firms simply did due diligence, loaded on leverage and hoped for outsized returns after selling the company a few years down the road. Today, record-setting bids and unprecedented capital inflows have created an overheated environment that requires new strategies for those looking to stay ahead of the pack. This report highlights the innovative ways firms are working to source deals, set themselves apart in an auction process and ensure performance once a deal is done. Also, industry specialists offer a close-up view of the debt markets and the hot energy market, which saw one of the largest-ever private equity proposals earlier this year.
In private equity, opportunity can come in the form of distressed companies, wind farms, rapidly developing regions like Asia, or even an artificial stone manufacturer. In this special section — produced in cooperation with students from the Wharton Private Equity Club — Wharton faculty and experts from private equity and venture capital firms comment on the investment trends that are shaping the industry.