Archive for the ‘Uncategorized’ Category

Private Equity Info Launches New Website Design

Private Equity Info has upgraded its website with a more intuitive navigation, better visual appeal and faster load times.
A subscription to www.PrivateEquityInfo.com provides access to the entire data suite which consists of eight data modules:

Private equity
Hedge funds
Mezzanine
Small business investment companies
Valuation
M&A advisory
Senior lenders
Institutional real estate investors

Private Equity - Process Overview

For each fund under management, private equity firms cycle through a multi-staged process of:

Fund raising from limited partners
Portfolio acquisition search
Investment
Growth
Divestment
Dispersal of funds back to limited partners

Fund Raising
Most private equity firms raise capital for a fund through investments made by limited partners - typically pensions, endowments, institutional funds, and high [...]

M&A Advisory Fee Structure

Merger & Acquisition advisory firms, also referred to as investment banks, retain new clients with a negotiable engagement letter that outlines the services to be provided, the fee structure and other general terms of agreement. This article presents an overview of the three most common components of an M&A advisor’s fee structure:

Retainer fee
Success [...]

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 [...]

Carried Interest - Tax Treatment

Carried interest is the profit earned on private equity investments by a deal-maker in a private equity house. Often known as carry, it allows private equity professionals to receive up to 20% of the profit from a company they sell. The carry can be a significant portion of a private equity professional’s total compensation.
Private equity [...]

Private Equity vs. Venture Capital

While both venture capital and private equity firms provide cash in exchange for equity positions in companies, the main distinction is the juncture in which the investment is made. With the exception of turnaround investments, private equity firms tend to invest in more established businesses with a history of positive, and preferably reliable, cash flow [...]

Senior Debt vs. Subordinated Debt

This post describes the difference between Senior Debt and Subordinated Debt.
Senior debt refers to debt that is in first-lien position. In the event of a default and subsequent liquidation, the senior lender (often a commercial bank), has first priority in recouping its investment. When a company goes bankrupt, stake holders divide the proceeds from selling [...]