Subscribing to the adage, “give a man a fish and he will eat for a day, teach a man how to fish and he will eat for a lifetime,” Financial Poise offers its audience objective and plain English education about investing. If you are looking for recommendations on particular stocks or looking to make a quick buck trading, you came to the wrong place. Financial Poise teaches investors about the fundamentals of investing for the long term.
Hedge funds have earned a grandiose reputation, thanks to the spectacular success of some funds and the tumescent wealth of some fund managers, and the equally spectacular failures of some other (and even some of the same) hedge funds and the humiliations that followed. Some high-profile hedge funds grew so large in the 1990s that they could disrupt markets and economies; one catastrophic failure, that of Long-Term Capital Management (LTCM) in 1997-98, nearly caused a global crisis.
Private equity and venture capital firms invest in different companies and for different reasons. In simplest terms, private equity firms invest money into private companies.* Venture capital can be viewed as a segment of private equity, at least from an academic point of view.
The modern private equity fund was invented and polished in the 1960s and 1970s in the USA. This asset class comprises venture, growth, and mezzanine capital, leveraged buyouts, and distressed debt.
In the world of middle-market buyouts, non-traditional funds (or fund-like groups) are playing an increasingly active role in the private equity domain. They include fundless sponsors, family offices, and even limited partners making direct investments in businesses. In this article, we will explore differences between fundless sponsors and more traditionally structured private equity funds.
Steven M. Davidoff identified the four main kinds of private equity deal structures being used by private equity funds in the wake of the 2008-09 financial crisis. Writing for the New York Times’ DealBook blog in June 2010, Davidoff described these four structures…
The biggest advantage of investing in a private equity fund of funds, in my opinion, is not diversification — after all, when you flatten the risk you also flatten the return somewhat; and even then, the return can be partly consumed by double-layered management fees.
Editor’s Note: This article has been updated. To view the updated version, click here. The JOBS Act: A primer for the private company c-suite executive SEC is wrong saying few AIs will behave like AIs SEC lifts the ban. Time to re-think your portfolio? Passed by Congress on March 27, 2012, and signed into law […]