From the category archives:

PE & VC News

Private Equity Employment and the JOBS Act

February 18, 2013

The Jumpstart Our Business Startups (JOBS) Act of 2011, originally proposed by President Obama and passed by Congress on April 5, 2011, changed regulations related to advertising, marketing, and investor relations for, among others, private equity managers.  The general thinking is that by reducing the red-tape associated with investments and business capital, employment growth will […]

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Sequestration and the Consensus Private Equity View

February 11, 2013

In about two weeks the federal government is set to begin the first stages of reducing the costs of government.  In everyday language, the actions are known as “sequestration” or “budget cuts.” The issue, of course, is a hot button, in that a number of political analysts, policy experts, economists, and investors appear to believe […]

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How Did Private Equity Employment Compare in 2012

February 4, 2013

The numbers are in.  Among the three classifications of employment — private equity, investment banking, and the hedge fund industry — which industry would you guess performed the best among the three? Well, overall private equity saw the largest increase in employment, growing by about 1k over their 2011 tally.  In contrast, hedge fund and […]

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Private Equity Employment and Interest Rates

January 28, 2013

As everyone knows, interest rates matter, and, depending upon the sector of the financial industry, interest rates matter a lot.  With the Federal Reserve recently adopting the “Evans Rule”, which effectively states that monetary policy will remain unchanged until inflation expectations rise above 2.5 percent and/or the unemployment rate drops below 6.5 percent, one might […]

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Private Equity Jobs by Presidency and Potential Effects

January 21, 2013

Pretty much everyone knows that employment within the private equity industry, and most all other industries, follows the ups and downs of the business cycle.  With the presidential inauguration now finished, and with a historical perspective on job creation and destruction during different administrations in mind, the question of this post is: how much of […]

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Do Defense Spending Reductions Mean Private Equity Opportunity

January 14, 2013

The drop dead date for the debt ceiling debate is the day after Valentines, although some give it until March 1st.  Until this time, the President, or more likely Congress, has the obligation to adjust the cost side of the government’s balance sheet (spending).   Once there is some agreement on adjusting expenditure costs, Congress may […]

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If Facebook Were Managed by Private Equity Professionals

January 7, 2013

Most investors appear to be well aware of what went wrong with the hottest IPO of 2012 – the Facebook IPO.  According to KCSA Strategic Communications, 93 percent of survey respondents – attorneys doing the legal work behind the IPO – indicated that Facebook was the most anticipated IPO of 2012. Not surprisingly, and perhaps […]

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Decline in Bonuses for Second Consecutive Year

December 31, 2012

Bonuses matter a lot in the financial world, and private equity is no exception to that rule.  Recently, Thomas DiNapoli, New York State Comptroller, indicated “trends suggest that total cash bonus pool for work performed in 2012 is likely to decline for the second consecutive year (although it is still too early to predict by […]

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2013 Private Equity Compensation Report

December 30, 2012

The latest Private Equity Compensation Report uncovered that private equity and venture capital professionals continue to see increases in compensation.  Even with some negative light shone on private equity during the election, the industry is poised for additional upside. Private Equity in the Election In the fall of 2012, the democrats tried to paint Mitt […]

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Underpaid Private Equity Professionals?

December 24, 2012

Contrary to what appears to be popular opinion, almost everyone that thinks in terms of value added comes to the same conclusion that professional athletes are generally underpaid, and usually by a good amount.  An opposite conclusion holds true for the earnings of doctors, whose wages and output generally fall in the category of overcompensation […]

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