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Private Equity Fundamentals: A Comprehensive Course for Beginners

OfficeHours

Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.

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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. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 130
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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. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 100
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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). Debt financing is much more common, and the GE firm is often the first institutional investor.

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Behind the Buyouts: Solomon’s Leonhardt on Consumer M&A Resurgence

The Deal

Inflation, supply chain disruptions and the rising cost of debt stopped consumer companies in their tracks last year. Public markets, however, have been tepid, with the much-awaited IPO of L Catterton Management Ltd. portfolio company Birkenstock GmbH & Co. KG having an underwhelming start.

M&A 64
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10-23-2023 Newsletter: Why Take-Private Dealmaking Remains Attractive for PE Investors

OfficeHours

Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm , as with a typical transaction. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.

Investors 130
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How Merchant Banks Help Businesses Grow and Succeed

Razorpay

Portfolio Management Merchant banking companies provide portfolio management services to high -net-worth individuals and corporate investors. These services include a selection of securities, portfolio monitoring and review, advice on the rationalization of portfolios, and tax planning.

Bank 52