From the category archives:

Private Equity Jobs

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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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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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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GDP Per Capita and Private Equity Employment

December 3, 2012

Perhaps correlating private equity employment with the growth in Gross Domestic Product (GDP) per capita is a useless endeavor given all the assumptions and compounding factors that could influence the results, but here it goes. The following figure represents the correlation between GDP per capita and private equity employment per capita. The regression line going […]

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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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