Archive for June 2009

Private Equity vs. Hedge Funds

While there are no strict definitions of a private equity firm and a hedge fund, some distinct similarities and differences separate the two types of firms.
Private equity firms and hedge funds are similar in that both invest from a leveraged pool of capital normally contributed by limited partners; both compensate the management team based on [...]

Capital Structure: Equity vs. Debt

A company’s capital structure is the relative proportion of equity and debt used to finance assets and operations. A company’s capital structure determines both the nature of its stakeholders and its expected cost of capital.
Capital Structure Balance
The combination of debt and equity to finance assets varies from one industry to another and from company to [...]