Remove Consulting Remove IPO Remove Portfolio
article thumbnail

10-20-2023 Newsletter: Why PE Investors Care About Inflation

OfficeHours

For example, if a private equity firm invested $100M into a portfolio company with a 20% expected rate of return, this return would not actually be 20% if the calculations were not adjusted for inflation. Instead, inflation of 5% would mean that the private equity firm’s real return would be reduced to 15%.

Investors 130
article thumbnail

Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

This style is about purchasing minority stakes in cash-flow-negative-but-high-growth companies that want to scale and eventually go public or sell (think: Uber or Airbnb before their IPOs). Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies. Many hedge funds also joined the party.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10-23-2023 Newsletter: Why Take-Private Dealmaking Remains Attractive for PE Investors

OfficeHours

Like a typical leveraged buyout, this can be achieved by selling the company to another private entity or PE firm or taking the company public once again through an IPO. After a certain period of time, usually 5-7 years, the PE firm will look to exit the investment. So you want to pursue a role in Private Equity and Growth Equity?

Investors 130
article thumbnail

How does a job in Private Equity look like?

Wizenius

This intricate process involves optimizing tax efficiency, strategizing future cash flows tied to specific milestones, devising exit strategies encompassing exit valuations and considering various exit avenues such as IPOs or identifying potential buyers. The goal is to ensure comprehensive evaluation before advancing further.

article thumbnail

07-11-2023 Newsletter: Diversity Events at Megafunds Have Started…

OfficeHours

On that note though — if diversity events are starting though… You know On-Cycle is around the corner here… Questions I would ask if I was an Analyst in an in-person diversity session: I just saw X deal happen, new portfolio company — were you involved with that? IS THE IPO MARKET COMING BACK? What makes a great associate in your mind?

article thumbnail

Transfer Traps: Considerations for Dual-Class Companies Contemplating M&A Transactions

Cooley M&A

There are compelling rationales for adopting a dual-class structure, but even proponents of the structure generally acknowledge that these benefits are significantly mitigated once the dual-class shares are out of the hands of the founders and/or pre-IPO stockholders. Potential carve outs for M&A voting agreements. Stockholder litigation.

M&A 59
article thumbnail

Renewable Energy Investment Banking: How to Make Greens by Going Green

Mergers and Inquisitions

Per FTI Consulting , solar, wind, and “portfolio” (mixed asset) deals account for 60% of renewable M&A activity in the U.S.: So, even if you’re advising entire companies, you must still be familiar with asset-level modeling and valuation and how an entire portfolio works. What Do You Do as an Analyst or Associate?