SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 84 - 21st February 2013:
- Remarkable - PE Performance during the Financial Crisis
- IPO Positive: Institutional Investors
- Canada's Blowout Year for PE
- Heinz Buyout is a PE Mega-deal
- Is the Mega Buyout Back?
- Quote of the Week: PE’s Reputation Risk
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 153 - Sept 12th, 2014:
- VC’s Appetite Leaves Silicon Innovators Scrabbling for Cash
- Family Office Invests in Harvard’s School of Public Health
- Record-Breaking Selling: US PE
- Billion Euro Reha Clinic Buyout
- China’s Largest PE Deal in a Resurging Market
- Quote of the Week: Angels are Everywhere
DealMarket Digest Issue 131 - 7 March 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 131 - March 7th, 2014:
- How New European Rules Affect Private Equity Teams
- PE outlook for Europe
- EY’s Top 10 VC Dealmakers Worldwide
- Global Telecom M&A Hits 13 Year High
- PE Drives Robust Returns for Ontario Pension Fund
- Quote of the Week: Venture Capital? Make Way for Geek Guilds
How FinTech is Changing Personal Finance Dara Albright
Depressed interest rates and volatile equity markets are driving an unprecedented interest in retail alternative investment products. Fortunately, through the intersection of technology and regulation, new FinTech archetypes are emerging to satisfy that demand. This is the slidedeck used during the 9/21/16 webinar, “How FinTech is Changing Personal Finance” which highlighted some of these groundbreaking technologies, tools, apps, rules and investment products that are transforming the financial services industry and changing the way people invest as well as save for retirement. The webinar is available on-demand at https://www.brighttalk.com/webcast/9407/193819
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 153 - Sept 12th, 2014:
- VC’s Appetite Leaves Silicon Innovators Scrabbling for Cash
- Family Office Invests in Harvard’s School of Public Health
- Record-Breaking Selling: US PE
- Billion Euro Reha Clinic Buyout
- China’s Largest PE Deal in a Resurging Market
- Quote of the Week: Angels are Everywhere
DealMarket Digest Issue 131 - 7 March 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 131 - March 7th, 2014:
- How New European Rules Affect Private Equity Teams
- PE outlook for Europe
- EY’s Top 10 VC Dealmakers Worldwide
- Global Telecom M&A Hits 13 Year High
- PE Drives Robust Returns for Ontario Pension Fund
- Quote of the Week: Venture Capital? Make Way for Geek Guilds
How FinTech is Changing Personal Finance Dara Albright
Depressed interest rates and volatile equity markets are driving an unprecedented interest in retail alternative investment products. Fortunately, through the intersection of technology and regulation, new FinTech archetypes are emerging to satisfy that demand. This is the slidedeck used during the 9/21/16 webinar, “How FinTech is Changing Personal Finance” which highlighted some of these groundbreaking technologies, tools, apps, rules and investment products that are transforming the financial services industry and changing the way people invest as well as save for retirement. The webinar is available on-demand at https://www.brighttalk.com/webcast/9407/193819
How Robo Advisers, Fintech Are Revolutionising Wealth ManagementDinis Guarda
How Robo Advisers, Fintech Are Revolutionising Wealth Management. A Reflection and presentation about trends and ideas related with the topic and what is happening in the industry
Equities Crowdfunding is Finally Legal - NOW WHAT?Dara Albright
Presentation for Royse University Webinar (June 24, 2016) to help investment bankers, entrepreneurs, inventors and issuers understand the new ways to raise capital through the "crowd"
The latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Flawed Market Structure Exacerbating the Great Wealth DivideDara Albright
This power point illustrates how flawed market structure exacerbates wealth disparity and how the JOBS Act is helping to narrow it by transforming our capital markets and creating an abundance of new opportunities for smaller issuers and investors to create wealth.
Reg A+ & The Renaissance of the Retail InvestorDara Albright
Presentation given by Dara Albright on December 13, 2017 as part of Cision® and Crowdfundx's Virtual Investor Conference Series. This presentation underscores how and why retail demand for Reg A+ investment products will accelerate
The Trillion Dollar FinTech OpportunityDara Albright
This was Dara Albright's opening presentation delivered at the FinTech Revolution cocktail event in New York City on November 15, 2016 illustrating how FinTech is on the verge of dislocating the $14T retail retirement market.
Presentation delivered on August 16, 2016 in Atlanta., GA addressing the factors that are driving the FinTech revolution, the economic significance of micro-investing technologies, recent industry turmoil and emerging tech-centric financial leaders. Video can be viewed at: https://www.youtube.com/watch?v=G0djjmmgyRw&list=PLkN9_AZTFbfhJjhEwffWXxeMoWGg34LF3
CommerzVentures: the rise of the robo advisors from an investor’s perspectiveCommerzVentures
Over the course of the last few years, the so-called robo advisors have gained significant media coverage in the financial technology (Fintech) space. Invested assets in automated investment services more than doubled from 2014 to 2015 and no Fintech conference has taken place without a newly established robo advisor. Additionally, there have been inflows of hundreds of millions of dollars in venture capital backing into the start-ups behind the robo advisors. Betterment, for example, one of the most famous and largest robo advisors, raised USD100m venture funding in March 2016. We have also started to see the adoption of automated advice by traditional banks and investment managers. This article serves as an introduction to CommerzVentures and our view on the rise of the robo advisors.
Using Crowd-Centric Alternative Assets to Enhance Portfolio YieldDara Albright
The FinTech revolution continues to inspire a great deal of retail financial product ingenuity - just as the regulatory winds are increasingly shifting in favor of the retail investor. The confluence of these two events is helping reshape the financial services industry. This presentations explores this transformation in financial services and shows how financial advisors can capitalize on this micro alternative investing trend while maintaining fiduciary responsibility to his retail clientele.
Presentation given at Atlanta Tech Angels event on 11/20/14 discussing the genesis of crowdfinance and illustrating ways to capitalize on emerging trends in crowdfinance
Finfair opening presentation by dara albrightDara Albright
The opening slide presentation to FinFair 2015, Wall Street’s inaugural conference featuring the leadership, products and technologies that are driving the crowd-centric retail alternatives market and democratizing the investment landscape.
www.finfairconf.com | @finfairconf | #finfair2015
Employing crowdfunding to start or expand your businessDara Albright
Presentation delivered as part of the Tony Robbins January 2017 Business Mastery Webinar Series. The webinar link can be found at: http://tonyr.co/BusinessMasteryWebinars
Latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Crowdfinance: The Path to Economic Democracy 43015Dara Albright
We’re living in a remarkable moment in history where due to technological achievement & legislative overhaul, we are witnessing a reconstitution of our entire finance system. Because these changes are essentially democratizing finance by drawing in the crowds, this reformation is being referred to as “crowdfinance”. Crowdfinance will cause Wall Street & Banking to be unrecognizable in a few short years. But, with great change comes great opportunity. This presentation illustrates how modern investors, businesses and underwriters can capitalize on this financial transformation.
DropDeck is a Decentralized Financing Platform for Startups & SMEs - streamlining venture investment & lending to help investors screen, evaluate, invest in or lend to the most innovative or thriving companies, maximize return, driving the global economy forward.
America is in the grips of a speculative frenzy. Investment .docxgreg1eden90113
A
merica is in the grips of a speculative frenzy. Investment bankers, private investment firms, and even a few dozen recently graduated
MBAs labelling themselves “searchers” are calling, emailing, wining, and dining small business owners. Their goal is to translate prosaic
small businesses into the poetry of private equity.
The great postcrisis private equity gold rush is on, fueled by cheap debt and enthusiastic investors. A lawn care chain might get half a dozen calls
and emails a week from business brokers and “searchers.” A regional bank auctioning off a business with $15 million in profits might pitch two
hundred prospects, receive fifty letters of intent, and take twelve separate private equity firms to management meetings, ending in a sale price
which the majority of bidders considers crazy. And the greatest prize of all—a software company—could sell for many multiples of revenue,
regardless of profitability.
As with the mortgage-backed securities bubble, experts are the promoters and pioneers of an “asset class” that they claim will offer high returns
with low risk, guided by the sage wisdom of elite managers. The legendary leader of Yale University’s endowment, David Swensen, has gone so far
as to call private equity a “superior form of capitalism.”
The experts agree with Swensen. A recent survey of institutional investors found that 49 percent expect private equity (PE) to outperform the
public equity market by a whopping 4 percent per year or more. Another 45 percent believe PE will outperform by 2–4 percent per year. Only 6
percent think returns will be comparable. The survey did not even bother to ask if investors thought PE might underperform. This is particularly
shocking given that data from Cambridge Associates shows that private equity returns have lagged the Russell 2000 index by 1 percent and the
S&P 500 by 1.5 percent per year over the past five years.
This consensus has led institutional investors to flood private markets with capital, about $200 billion per year of new commitments. The result is
soaring prices for private companies of all shapes and sizes. Just before the financial crisis, in 2007, the average purchase price for a PE deal was
8.9x EBITDA (earnings before interest, taxes, depreciation, and amortization—a commonly used measure of cash profitability). Deal prices reached
8.9x again in 2013 and are now up to nearly 11x EBITDA.
But asset prices are going up everywhere. What makes private equity dangerous is the use of debt—and the use of phony accounting to conceal the
riskiness of these leveraged bets. The average PE deal is 65 percent debt financed, and whereas the valuations of public equities are determined by
transparent, liquid public markets, PE firms determine the valuations of their own portfolio companies. Unsurprisingly, they report far lower
volatility than public markets.
This appraisal accounting also encourages lenders to take risks. After the financial crisis, the Fede.
How Robo Advisers, Fintech Are Revolutionising Wealth ManagementDinis Guarda
How Robo Advisers, Fintech Are Revolutionising Wealth Management. A Reflection and presentation about trends and ideas related with the topic and what is happening in the industry
Equities Crowdfunding is Finally Legal - NOW WHAT?Dara Albright
Presentation for Royse University Webinar (June 24, 2016) to help investment bankers, entrepreneurs, inventors and issuers understand the new ways to raise capital through the "crowd"
The latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Flawed Market Structure Exacerbating the Great Wealth DivideDara Albright
This power point illustrates how flawed market structure exacerbates wealth disparity and how the JOBS Act is helping to narrow it by transforming our capital markets and creating an abundance of new opportunities for smaller issuers and investors to create wealth.
Reg A+ & The Renaissance of the Retail InvestorDara Albright
Presentation given by Dara Albright on December 13, 2017 as part of Cision® and Crowdfundx's Virtual Investor Conference Series. This presentation underscores how and why retail demand for Reg A+ investment products will accelerate
The Trillion Dollar FinTech OpportunityDara Albright
This was Dara Albright's opening presentation delivered at the FinTech Revolution cocktail event in New York City on November 15, 2016 illustrating how FinTech is on the verge of dislocating the $14T retail retirement market.
Presentation delivered on August 16, 2016 in Atlanta., GA addressing the factors that are driving the FinTech revolution, the economic significance of micro-investing technologies, recent industry turmoil and emerging tech-centric financial leaders. Video can be viewed at: https://www.youtube.com/watch?v=G0djjmmgyRw&list=PLkN9_AZTFbfhJjhEwffWXxeMoWGg34LF3
CommerzVentures: the rise of the robo advisors from an investor’s perspectiveCommerzVentures
Over the course of the last few years, the so-called robo advisors have gained significant media coverage in the financial technology (Fintech) space. Invested assets in automated investment services more than doubled from 2014 to 2015 and no Fintech conference has taken place without a newly established robo advisor. Additionally, there have been inflows of hundreds of millions of dollars in venture capital backing into the start-ups behind the robo advisors. Betterment, for example, one of the most famous and largest robo advisors, raised USD100m venture funding in March 2016. We have also started to see the adoption of automated advice by traditional banks and investment managers. This article serves as an introduction to CommerzVentures and our view on the rise of the robo advisors.
Using Crowd-Centric Alternative Assets to Enhance Portfolio YieldDara Albright
The FinTech revolution continues to inspire a great deal of retail financial product ingenuity - just as the regulatory winds are increasingly shifting in favor of the retail investor. The confluence of these two events is helping reshape the financial services industry. This presentations explores this transformation in financial services and shows how financial advisors can capitalize on this micro alternative investing trend while maintaining fiduciary responsibility to his retail clientele.
Presentation given at Atlanta Tech Angels event on 11/20/14 discussing the genesis of crowdfinance and illustrating ways to capitalize on emerging trends in crowdfinance
Finfair opening presentation by dara albrightDara Albright
The opening slide presentation to FinFair 2015, Wall Street’s inaugural conference featuring the leadership, products and technologies that are driving the crowd-centric retail alternatives market and democratizing the investment landscape.
www.finfairconf.com | @finfairconf | #finfair2015
Employing crowdfunding to start or expand your businessDara Albright
Presentation delivered as part of the Tony Robbins January 2017 Business Mastery Webinar Series. The webinar link can be found at: http://tonyr.co/BusinessMasteryWebinars
Latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Crowdfinance: The Path to Economic Democracy 43015Dara Albright
We’re living in a remarkable moment in history where due to technological achievement & legislative overhaul, we are witnessing a reconstitution of our entire finance system. Because these changes are essentially democratizing finance by drawing in the crowds, this reformation is being referred to as “crowdfinance”. Crowdfinance will cause Wall Street & Banking to be unrecognizable in a few short years. But, with great change comes great opportunity. This presentation illustrates how modern investors, businesses and underwriters can capitalize on this financial transformation.
DropDeck is a Decentralized Financing Platform for Startups & SMEs - streamlining venture investment & lending to help investors screen, evaluate, invest in or lend to the most innovative or thriving companies, maximize return, driving the global economy forward.
America is in the grips of a speculative frenzy. Investment .docxgreg1eden90113
A
merica is in the grips of a speculative frenzy. Investment bankers, private investment firms, and even a few dozen recently graduated
MBAs labelling themselves “searchers” are calling, emailing, wining, and dining small business owners. Their goal is to translate prosaic
small businesses into the poetry of private equity.
The great postcrisis private equity gold rush is on, fueled by cheap debt and enthusiastic investors. A lawn care chain might get half a dozen calls
and emails a week from business brokers and “searchers.” A regional bank auctioning off a business with $15 million in profits might pitch two
hundred prospects, receive fifty letters of intent, and take twelve separate private equity firms to management meetings, ending in a sale price
which the majority of bidders considers crazy. And the greatest prize of all—a software company—could sell for many multiples of revenue,
regardless of profitability.
As with the mortgage-backed securities bubble, experts are the promoters and pioneers of an “asset class” that they claim will offer high returns
with low risk, guided by the sage wisdom of elite managers. The legendary leader of Yale University’s endowment, David Swensen, has gone so far
as to call private equity a “superior form of capitalism.”
The experts agree with Swensen. A recent survey of institutional investors found that 49 percent expect private equity (PE) to outperform the
public equity market by a whopping 4 percent per year or more. Another 45 percent believe PE will outperform by 2–4 percent per year. Only 6
percent think returns will be comparable. The survey did not even bother to ask if investors thought PE might underperform. This is particularly
shocking given that data from Cambridge Associates shows that private equity returns have lagged the Russell 2000 index by 1 percent and the
S&P 500 by 1.5 percent per year over the past five years.
This consensus has led institutional investors to flood private markets with capital, about $200 billion per year of new commitments. The result is
soaring prices for private companies of all shapes and sizes. Just before the financial crisis, in 2007, the average purchase price for a PE deal was
8.9x EBITDA (earnings before interest, taxes, depreciation, and amortization—a commonly used measure of cash profitability). Deal prices reached
8.9x again in 2013 and are now up to nearly 11x EBITDA.
But asset prices are going up everywhere. What makes private equity dangerous is the use of debt—and the use of phony accounting to conceal the
riskiness of these leveraged bets. The average PE deal is 65 percent debt financed, and whereas the valuations of public equities are determined by
transparent, liquid public markets, PE firms determine the valuations of their own portfolio companies. Unsurprisingly, they report far lower
volatility than public markets.
This appraisal accounting also encourages lenders to take risks. After the financial crisis, the Fede.
DealMarket Digest Issue 140 - 9th May 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 140 - May 9th, 2014:
- Buoyant: MENA M&A Gains Momentum
- Fire Sale: PE Bidders Sought in Billion Dollar Minimax Deal - Draft
- Price is No Object in Silicon Valley’s Race for Technology Dominance
- Big Deals: SWFs, Family Offices Go Directly Into Euro Venture Capital Market
- First-Time PE Fundraising Bottoming Out?
- Quote of the Week: Getting Emotional Post-M&A
DealMarket Digest Issue111 - 4th October 2013Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 111 - October 4th, 2013:
- Venture Capital in Europe Rebounds Ahead of US
- Buyouts Are up 19% This Year To-Date
- Europe’s Hottest Tech Startup You’ve Never Heard Of
- Mega-buyout for Blackstone Hotel Investment
- Family Offices’ Growing Role in Silicon Valley
- Choosing a Private Equity Partner - The Investors View
DealMarket Digest Issue137 - 17 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 137 - April 17th, 2014:
- Cravings for Direct Co-Investment Still Strong
- Narrow Niches and Big Returns
- Australian PE Backed IPOs Outperform
- The Traits of Family Wealth Managers That Make Money…. and Lose it
- CEOs Get M&A Fever Again
- Quote of the Week: Betting on Justice
DealMarket Digest Issue86 - 8th March 2013Urs Haeusler
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 86 - 8th March 2013:
- Mutual Attraction: Family Offices and PE Fundraisers
- Survey Finds Investor Appetite for Big Buyout Funds
- PE Investors Eye Ista for $3.9 bn
- Doubts Linger About IPO as Exit in Europe
- Investments on the Rise in Latin America
- Quote of the Week: Sales Booster
DealMarket Digest Issue91 - 19th April 2013Urs Haeusler
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 91 - April 19, 2013
- New Study: What Happens When Deals are Leaked
- Investment in Clean Energy Trends
- Good News for US Startups: Angel Investment Stabilizes
- PE to Push European M&A Deal making in 2013
- Candle Company Attracts Buyout Offers of up to USD 2 billion
- Quote of the Week: Personal Flight
DealMarket Digest Issue117 - 14th November 2013Urs Haeusler
November 15, 2013 - Issue 117
- Cautious Optimism for MENA Dealmaking
- Growth in Multi-Trillion Sovereign Wealth Fund Assets Could Boost PE
- Shoes, Handbags & Mascara: Private Equity’s High Fashion Passion
- Smart Money Monitors Private Equity Costs
- Sustained Recovery Predicted for Global M&A
- Quote of the Week: Outperformance – Algorithms versus Humans
Securities Firms and Investment Banks.docxjeffreye3
Securities Firms and Investment Banks
Securities Firms and Investment Banks (IBs)
Investment banks (IBs) help corporations and governments raise capital through debt and equity security issues in the primary market
Underwriting is assisting in issuing new securities
IBs also advise on mergers and acquisitions (M&As) and corporate restructuring
Securities firms assist in the trading of securities in secondary markets
Broker-dealers assist in the trading of existing securities
2
Investment bankers assist borrowers in raising capital in debt and equity markets and provide advice about mergers and acquisitions, corporate restructuring and general assistance in finance. Bankers also provide many creative over the counter derivative products. Securities firms provide brokerage and market making services. The investment banking and securities industries are complementary and many firms provide a broad range of services. Some specialized entities with advantages in certain market niches remain less diversified. The industry underwent tremendous consolidation in the last decade due to increasing scale and scope economies and the need for greater capital. The face of the industry was changed forever during the financial crisis of 2007-2008 with forced buyouts of Merrill-Lynch and Bear-Stearns, failure of Lehman Brothers and Goldman-Sachs and Morgan Stanley becoming commercial banks. Nevertheless, working for many of these firms is often considered the penultimate finance career, with prestige and remuneration to match. With industry profits down, firms on the Street are having a difficult time maintaining their large salaries and bonuses. A very significant portion of profits are paid out in the form of remuneration to executives. The chapter presents an overview of the size of the industry and the general strategies of the participants, major activities, primary assets and liabilities on the balance sheet, recent in the news events concerning breaches of ethics and the trend toward globalization.
Size, Structure and Composition of Industry
The size of the industry is usually measured by the equity capital of firms rather than total asset size
Equity capital in the industry in 2015 was $235 billion
The number of firms in the industry changed due to economies of scale and scope, losses with the economy, scandals at some firms, and regulations that allowed both inter- and intra-industry mergers
5,248 firms in 1980
9,515 firms in 1987
6,016 firms in 2006
4,115 firms in 2016
As with commercial banks, consolidation has largely occurred through mergers and acquisitions
.
Securities Firms and Investment Banks.docxkenjordan97598
Securities Firms and Investment Banks
Securities Firms and Investment Banks (IBs)
Investment banks (IBs) help corporations and governments raise capital through debt and equity security issues in the primary market
Underwriting is assisting in issuing new securities
IBs also advise on mergers and acquisitions (M&As) and corporate restructuring
Securities firms assist in the trading of securities in secondary markets
Broker-dealers assist in the trading of existing securities
2
Investment bankers assist borrowers in raising capital in debt and equity markets and provide advice about mergers and acquisitions, corporate restructuring and general assistance in finance. Bankers also provide many creative over the counter derivative products. Securities firms provide brokerage and market making services. The investment banking and securities industries are complementary and many firms provide a broad range of services. Some specialized entities with advantages in certain market niches remain less diversified. The industry underwent tremendous consolidation in the last decade due to increasing scale and scope economies and the need for greater capital. The face of the industry was changed forever during the financial crisis of 2007-2008 with forced buyouts of Merrill-Lynch and Bear-Stearns, failure of Lehman Brothers and Goldman-Sachs and Morgan Stanley becoming commercial banks. Nevertheless, working for many of these firms is often considered the penultimate finance career, with prestige and remuneration to match. With industry profits down, firms on the Street are having a difficult time maintaining their large salaries and bonuses. A very significant portion of profits are paid out in the form of remuneration to executives. The chapter presents an overview of the size of the industry and the general strategies of the participants, major activities, primary assets and liabilities on the balance sheet, recent in the news events concerning breaches of ethics and the trend toward globalization.
Size, Structure and Composition of Industry
The size of the industry is usually measured by the equity capital of firms rather than total asset size
Equity capital in the industry in 2015 was $235 billion
The number of firms in the industry changed due to economies of scale and scope, losses with the economy, scandals at some firms, and regulations that allowed both inter- and intra-industry mergers
5,248 firms in 1980
9,515 firms in 1987
6,016 firms in 2006
4,115 firms in 2016
As with commercial banks, consolidation has largely occurred through mergers and acquisitions
.
DealMarket Digest Issue 113 - 18th October 2013Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 113 - 18th October 2013:
- PE Attracts American Family Office Investors
- How to Work with a Private Equiteer
- Warburg Pincus’ Smart Money Flows to Energy Deals Last Modified
- Drilling for Returns in Mining Sector
- PE Outbid in Auto Parts Buyout
- Quote of the Week: HNWIs Step up the VC Game
DealMarket Digest Issue116 - 8th November 2013Urs Haeusler
- PE Eyes Multi-billion Investment in German-owned Oil & Gas Unit
- New Study Reveals Emerging PE Trends and a Major Shift
- PE Outperformance: Insight into Returns at Top US Pension Funds
- Insurance Industry M&A Trends Downwards: A Global Multi Year View
- PE Industry Sees Recovery But Increasing Competition
- Quote of the Week: Seismic Strategy Shifts
DealMarket Digest Issue128 - 14th February 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 128 - February 14th, 2014:
• New Source for Private Equity Performance Data and Analysis
• Large Buyout to Grow French Car Park Specialist
• New Mega-Funds May Have Trouble Finding Mega Targets
• Global M&A Stats Show Private Equity is Finding the Exit
• Cleantech Investment Declines Again in 2013
• Quote of the Week: Bitcoin Anomaly
Similar to DealMarket Digest Issue 84 - 21st February 2013 (20)
DealMarket Digest Issue143 - 30 May 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 143 - May 30, 2014:
- Eye the Transaction Alpha for Team Selection
- PE-Backed IPOs Hit a High
- Family Offices Deepen Direct Investing Activity
- Accor Announces Billion Dollar Hotels Buyout
- The Show Me the Money Ratio
- Quote of the Week: Good Stewards
DealMarket Digest Issue136 - 11 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 136 - April 11th, 2014:
- Billion Dollar Deal for Goldman Sachs’ Private Equity
- More Capital for Fewer Ventures This Year-to-Date
- Singapore’s Temasek Expands
- Sellers’ Market: Private Equity’s Distributions Jump in 2013
- PE Performance Improves Outside the US But Still Below Public Markets
- Quote of the Week: Contrarian Views
DealMarket Digest Issue 132 - 14 March 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 132 - March 14th, 2014:
- Five Traits of Blockbuster PE Exits
- Fund of Funds Still in the Game, But Pressure is on Performance
- More Women Active in Private Equity
- PE Firms Seek Manufacturing Company Buyout
- M&A Healthcare Deals Grow in More Ways Than One
- Quote of the Week: Not So Dumb Money and VC Evolution
DealMarket Digest Issue130 - 28 February 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 130 - February 28th, 2014:
- PE Shuns Pricey Buyouts; Seeks Alternative Strategies
- Southern Europe Back on the PE Radar
- Non-bank Lenders to Boost Buyout M&A Activity
- PE Execs Making Top Dollar on Wall Street
- Global IPOs Float Private Equity’s Boat
- Quote of the Week: IMF Chief Gives Her Savvy View on Tech Impact
DealMarket Digest Issue 107 - 6 September 2013Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 107 - September 6, 2013
- Zephyr and Unquote Reveal Lower M&A and Exit Activity, Despite Headline Deals
- Private Equity Deals Are Creating a Record Year for Investment Bankers
- Growth in Crowdfunding Usage Evidenced by Increasing Specialization and Internationalization
- Turkey’s Deal Activity at a High Despite Summer Season
- Quote Of The Week: Turning the Tables on the Elevator Pitch for Startups
DealMarket Digest Issue85 - 1st March 2013Urs Haeusler
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 85 - 1st March 2013:
- Remarkable - PE Performance during the Financial Crisis
- IPO Positive: Institutional Investors
- Canada's Blowout Year for PE
- Heinz Buyout is a PE Mega-deal
- Is the Mega Buyout Back?
- Quote of the Week: PE’s Reputation Risk
DealMarket Digest Issue 83 - 15th February 2013Urs Haeusler
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 83 - 15th February 2013:
• Corporate Venture Grows in Importance
• Cleantech Predictions 2013
• Global Warming in Secondaries Market
• Taking a Little Private Time
• A Ten Billion Pound Telecoms Buyout in the UK?
• Highs and Lows for PE in Emerging Markets
• Quote of the Week: The Wine Industry Indicator
1. DIGEST 84
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 84
1 Remarkable ‐ PE Performance
during the Financial Crisis
IPO Positive: Institutional Investors
2 Canada's Blowout Year for PE
Heinz Buyout is a PE Mega‐deal
Is the Mega Buyout Back?
3 Quote of the Week: PE’s Reputation
Risk
February 21, 2013
2. REMARKABLE – PE PERFORMANCE
DURING THE FINANCIAL CRISIS
PE performance stands out from the equities crowd. Contrary to a commonly held assumption that
private equity investments performed badly during the financial crisis in comparison with other asset
classes, a study released this week by Golding Capital and performed by HEC revealed it is in fact
performing rather well. Claiming to be the first empirical analysis of the relative performance of private
equity during the financial crisis, the study reports that transactions closed in the years 2006 to 2008
achieved an “exceptionally positive alpha” of 20.5 %. It says that even measured in absolute returns,
these private equity deals were positive at 2.7 % and 5.1 % respectively.
Comparable stock market returns were negative at ‐2.4 % and ‐15.4 %. Private equity's long‐term
average alpha is 9.7 %. This average value is calculated on the basis of more than 5,200 relevant
transactions completed between 1977 and 2011. Founded in 1999, Golding Capital is a PE advisory firm
guiding about EUR 2.5 billion in assets. It clients include German insurance companies, pension funds
and banks, particularly savings banks and cooperatives.
IPO POSITIVE: INSTITUTIONAL
INVESTORS
A new Ernst & Young global survey of 300
institutional investors shows that this
group is increasingly positive about the
IPO market this year.
A vast majority ‐ 82% ‐ have invested in
pre‐IPO and IPO stocks in 2012 compared
to only 18% in either 2010 or 2011. Going
forward investors cite the prospect of a
brighter corporate earnings outlook,
an improving macro‐economic
environment and more stable equity
markets as the key drivers of sustained
positive market sentiment through 2013.
The E&Y info graphic does an excellent
job at explaining the sentiment on IPOs.
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3. CANADA'S BLOWOUT YEAR FOR PE
Canada set records for activ‐ity and high
investment levels with CDN 11.6
billion of new investments via 313 transactions
buyout PE deals in 2012, according to
a statistical report from CVCA‐ Canada's
Venture Capital & Private Equity Association
and research partner Thomson Reuters.
The figures signal a rebound in activity post‐
financial crisis, says CVCA. Mega‐deals (those
greater than one billion CDN dollars) drove the
increase, including the Apax take private of
Montréal's Garda World Security Corp., and
BCE‐led buyout of Toronto's Q9 Networks Inc.,
but mid‐market deals actually played the “vital
role”, according to the report. Canadian Image source: CVCA
buyout‐PE funds were also more active deal‐makers on an international basis in 2012.
HEINZ BUYOUT IS A PE MEGA‐DEAL
Warren Buffett's Berkshire Hathaway and the private equity firm 3G Capital are set to buy ketchup giant
H.J. Heinz for a USD 23.2 billion, according to Reuters. That makes it the deal of the week by a long shot.
The news came out on Thursday. This is not the first time 3G Capital has been in the news in the past
year. We noted their involvement in a Burger King buyout, and Reuters has several other deals the firm
was involved in, including some background on the principle partners in 3G.
IS THE MEGA BUYOUT BACK?
Preqin’s latest analysis of deal activity says that
there is scope for more mega‐sized buyout deals in
the coming months. It points to activity so far in
2013, which saw the two largest PE‐backed public‐
to‐private transactions announced since the
buyout boom period of 2006‐2007. mega buyout.
The two deals are: the USD24.4bn Silver Lake ‐
backed privatization of Dell Inc. and the Berkshire
Hathaway and 3G Capital‐ backed buyout of H.J.
Heinz Company.
Image source: prequin
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4. QUOTE OF THE WEEK:
PE’S REPUTATION RISK
“Unfortunately, for those GPs doing things
right, these scandals continue to taint the
public image of private equity, making it
difficult to convince the public and investors
that the private equity model can be good
for business.”
Who said it: unquote, a PE industry trade publication
Image source: unquote
In Context: unquote researched and described PE’s most embarrassing moments in recent years, an
effort sparked by the recent horse meat debacle (horse meat made its way into European‐branded
frozen lasagna in addition to the beef that was supposed to be in it). The company in question was
backed by PE.
Here is its summary of PE’s recent embarrassing moments
• Lion Capital‐backed Findus and Comigel, which is backed by Céréa Capital
• CVC‐backed Formula One corruption case
• PE‐backed care home patient neglect ‐ KKR, Triton, and Blackstone
• Habbo Hotel fails on child protection – online kids network was backed by 3i and Balderton
The article and quote above picked up on the public relations aspect, pointing out an opportunity for
PE players.
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5. The Dealmarket Digest empowers members of Dealmarket by providing
up‐to‐date and high‐quality content. Each week our in‐house editor sifts
through scores of industry and academic sources to find the most
noteworthy news items, scoping trends and currents events in the global
private equity sector. The links to the sources are provided, as well as an
editorialized abstract that discusses the significance of the articles
selected. It is a free service that embodies the values of the Dealmarket
platform delivers: Professional, Accessible, Transparent, Simple, Efficient,
Effective, and Global.
To receive the weekly digest by email register on www.dealmarket.com.
Editor: Valerie Thompson, Zurich
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