Tag Archive for 'Private Equity'

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Largest Private Equity Firms

Published on February 9, 2007 in International Finance. 0 Comments Tags: .


Capital continues to flow between all major stock exchanges around the world. According to research conducted by McKinsey, “the world’s financial assets ranging from equity, fixed income, and other instruments now total more than $140 trillion and are on pace to reach $214 trillion by decade’s end.”

Putting in perspective, it accounts now for more than three times the current global GDP. Deeper financial markets promote a more efficient allocation of capital and risk and offer households and businesses more choices for investing savings and raising capital, respectively.

According to current economic trends including the abundance of capital in financial markets, it is most likely that the number of private equity deals will overpass last year’s record year. Today BusinessWeek reports on the fifteen largest Private Equity firms. These firms have assets under management with a value ranging from $17 billion to $49.7 billion.

Subsequently, Red Herring published an interesting article on private equity in the Tech sector “Will private equity change tech? Or will tech change private equity?“, The Economist devotes a story on “The booming buy-out business” and “The real risks of private equity“.

UPDATE @ February 10th: Morgan Stanley’s Journal of Applied Corporate Finance published articles on “Public vs. Private Equity“(PDF) and “Private Equity and Its Import for Public Companies” (PDF).

Private Equity

Published on February 6, 2007 in International Finance. 0 Comments Tags: .

Are private-equity firms the new conglomerates? The two look more and more alike. The dozen or so top private-equity firms have taken positions in an extraordinarily diverse range of operating companies, much as big conglomerates have done. Each week brings another batch of multi-billion-dollar deals.

Today, Blackstone Group LP raised its cash offer for Equity Office Properties Trust to $39 billion to thwart rival bidder Vornado Realty Trust a day before shareholders vote on what would be the largest-ever leveraged buyout. (Bloomberg)

So what, exactly, are private equity firms such as Carlyle Group, Blackstone Group, Texas Pacific Group, and Kohlberg Kravis Roberts nowadays? Part buyout shop, part investment bank, part asset-management firm. Colin Blaydon, director of the Centre for Private Equity & Entrepreneurship at Dartmouth’s Tuck School of Business says “There are going to be some major financial institutions that emerge from the phenomenal growth [in private equity] of the last years.” For example “Carlyle is very deliberately moving in that direction. It looks a bit like the mid-’80s, when a handful of big, multiline investment-banking firms emerged as the bulge bracket.” (BusinessWeek)

Another trend, the art of private equity is finding and polishing diamonds in the rough. No wonder, then, that more firms are venturing off the beaten path in search of uncut gems. With record sums pouring into the asset class in recent years, more investors and fund managers are turning to the developing world. (Economist)