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 [...]
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 [...]
80% of U.S. private equity firms are located in just 10 states, with the largest concentration of firms in New York, California and Illinois.
While the private equity firms themselves are fairly geographically concentrated, it’s interesting to note that their portfolio companies are a little more dispersed.
The table below shows the top 20 states for private [...]