From the category archives:

PE & VC News

Private Equity Risks for 2013

December 17, 2012

At this time last year, private equity was recovering modestly, with around $1 trillion in dry powder and another $2 trillion in assets still held on general partners’ books.  Bain & Company described the outlook as highly uncertain, with the general spread between the valuations of buyers and sellers as some of the highest in […]

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The Signals from the Fiscal Cliff Discussion

December 10, 2012

The taxes portion of the fiscal cliff discussions have brought to light issues on which not just politicians, but economists, private equity and other financial professionals, vehemently disagree.  To elected officials, the fiscal cliff issue comes down to votes and the benefits of reducing the costs associated with government (i.e. reducing government spending) and the […]

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Private Equity Professionals Handling the Fiscal Cliff?

November 26, 2012

How might the fiscal cliff be handled by private equity professionals in comparison to elected officials? Private equity professionals are a very dissimilar bunch of individuals, although there is a common thread among this group – the competitive search for maximum output at minimum cost. Certain unaware individuals may assume, based upon a few selected […]

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Private Equity Business and Secession

November 19, 2012

With the presidential election now over and calls for secession appearing in a good number of states, one might wonder: how would various secession scenarios affect the private equity industry? Well, perhaps the best place to start is with the states that appear to have the strongest movement towards seceding from the Union – Texas […]

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Financial Capital Cities in a Generation or Two

November 5, 2012

History is full of the ascendance and deterioration of financial capital cities.  Although weakened over the past 10 years, the United States still reigns as the financial capital of the world , with businesses in New York and Chicago providing the largest amount of financial intermediary services within the United States. Rank Financial Capital Financial […]

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Private Equity Fundraising Grew in Q3 2012

November 5, 2012

Despite ongoing economic uncertainty, investor appetite for private equity deals remained robust in the third quarter as private equity funds raised a total of $64 billion during the quarter, roughly 10 percent more than the third quarter of 2011. The private equity capital raise during the September quarter was however well below the $83 billion […]

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Private Equity Firms Turn to Debt-funded Dividend Recapitalizations for Exits

October 25, 2012

The slowdown in mergers and acquisitions as a result of global economic uncertainty has prompted private equities to take the dividend recapitalization route to bolster returns. Data from credit agency Standard & Poor’s shows that debt issued to fund private equity dividends has already topped $54 billion this year, easily beating the record $40.5 billion […]

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The Market for Private Equity Wealth Creation

October 23, 2012

Most investors in financial assets have pretty much a myopic view of asset wealth accumulation – stocks and bonds.  Of course, it’s not just novice or certain types of advanced investors that place great weight on equities and debt – academia, the political world, and professional financial organizations tend to have a large portion of […]

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Capital Gains Taxes: A $0.9 Billion Increase on Private Equity

October 22, 2012

Capital gains taxes are set to rise come January 1st, with the capital gains tax rate rising from anywhere between 9 percent if you’re in the current 33 percent  bracket to 50 percent if you’re in the lowest bracket.  The capital gains tax rate is set to increase by 13 percent if you’re in the […]

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Romney and Private Equity Job Creation

October 18, 2012

With the presidential election bringing private equity and wealth creation to the fore, one might reasonably ask: first, did Romney really create 100,000 jobs and second, what kind of economic impact did Romney’s Bain Capital have on the economy as a whole?  The first question is an accounting exercise using varying assumptions regarding the time […]

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