A CFA Institute article offers analysis of private equity returns in the U.S. (using data from Cambridge Associates). Using the data, the Institute created a U.S. Private Equity Index the…
Tag: private equity
Some Buyout Firms Taking Debt-Laced Dividends
A new Moody’s report shows that certain aggressive buyout firms are taking debt-financed dividends from the companies they own, and “potentially jeopardizing their ability to navigate a downturn,” according to…
S&P Global Says Watch for Aggressive Private Equity Tactics
According to an article in Institutional Investor, a new report published by S&P Global Ratings suggests “It might be worth questioning the earnings of companies being bought by private equity…
In Private Equity, the Past May Be a Guide to Future Results
A new study supports the notion that private equity and venture capital managers that “do well with one fund are more likely to do well with the next,” according to…
Private Equity Market is Consolidating, Data Shows
According to a white paper by advisory firm Triago, private equity firms have acquired their peers in more than 150 deals since 2005, with 65% of the deals occurring in…
Private Equity is Losing Its Appeal, But You're Already Invested
“Even if you’ve never talked to a fund manager, or don’t have any idea what a leveraged buyout is, your financial future still depends on this enigmatic world of finance,…
Private Equity Performance Numbers May Undermine Credibility
Internal rate of return (IRR), the key performance measure of private equity firms, is at the risk of being “massaged in a way that undermines the industry’s credibility and adds…
Does Private Equity Beat the Market?
A recent Wall Street Journal article addresses reader comments regarding the uptick in the cash balances held by private equity firms. Below are samples of reader questions and corresponding WSJ…
For Hedge Funds, Being Like Buffett Isn't Easy
While Warren Buffett’s track record is appealing to large private equity firms, his buy-and-hold strategy (averaging 10-20 years rather than the hedge fund industry norm of 3-5 years) can be…
Rising Leveraged Debt a Worry
The number of leveraged loans (lending agreements with the most indebted companies in the U.S. and Europe) is high, according to The Wall Street Journal, a “development that investors worry…