...Harvard Business School 9-297-005 Rev. October 18, 1996 D O Private Equity Investment in Russia: Alliance Cellulose Limited N In April, 1995, portfolio managers were reassessing the investment climate in Russia. Since the disintegration of Communism and the Soviet Union in 1991, western investors had been intrigued by the potentially huge returns that could be gained by participating in the restructuring of the Russian economy. Russia’s transformation to a market system, however, had been highlighted by missteps and disappointments. Foreign investors who had jumped into the market only eight months earlier were burned badly by a general market collapse in October. Furthermore, Russia’s political and economic future were uncertain. O Nevertheless, Russia possessed many attractive features that could reward those with the courage to invest at this early stage of market development. Russia’s natural resources accounted for significant portions of the world’s proven oil and gas, timber, coal, and minerals reserves. In addition, the privatization process, lack of internal capital, and country-specific risk resulted in valuations for Russian companies that seemed to be small fractions of their world peers. T Russia in 1995 was frequently compared to America’s “Wild West,” when the search for riches and general lawlessness combined to create very volatile conditions. While western money managers were drawn to Russia by tantalizing asset valuations...
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...THE BASICS OF PRIVATE EQUITY With its bright performance in 2010, Indian PE has re-emerged in good shape from the turbulent times of the global credit meltdown and subsequent economic retrenchment. Deal activity has rebounded more quickly than in other Asia-Pacific markets, the exit markets are healthier than ever and capital continues to pour into an expanding number of domestic and international PE funds. Investment in P.E. firms adds value and managerial capacity in companies that are in need of rejuvenation and intend to compete in the global environment. Value addition is the main feature of investment. What is Private Equity? In finance, private equity is an asset class consisting of equity investments in companies that are not traded on a public stock exchange. Investments typically involve a transformational, value added, active management strategy. Private equity is medium to long-term finance provided in return for an equity stake in potentially high growth unquoted companies. Private equity provides long-term, committed share capital, to help unquoted companies grow and succeed. Private equity is a broad term which commonly refers to any type of non-public Ownership Equity securities that are not listed on a public exchange. At the start of a business, owners put some funding into the business to finance assets. Businesses can be considered for accounting purposes to be sums of liabilities and assets (also known as the accounting equation). After...
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...ECFS895 Private Equity Investment AFC Term 1 CBD 2015 Dept of Applied Finance and Actuarial Studies Contents General Information Learning Outcomes General Assessment Information Assessment Tasks Delivery and Resources Unit Schedule Learning and Teaching Activities Policies and Procedures Graduate Capabilities Changes from Previous Offering Important Notice Standards Required to Complete the Unit Satisfactorily 2 2 3 3 7 8 10 10 12 15 15 15 Disclaimer Macquarie University has taken all reasonable measures to ensure the information in this publication is accurate and up-to-date. However, the information may change or become out-dated as a result of change in University policies, procedures or rules. The University reserves the right to make changes to any information in this publication without notice. Users of this publication are advised to check the website version of this publication [or the relevant faculty or department] before acting on any information in this publication. http://unitguides.mq.edu.au/unit_offerings/52041/unit_guide/print 1 Unit guide ECFS895 Private Equity Investment General Information Unit convenor and teaching staff Lecturer (Sydney/Melbourne) Stephane Chatonsky stephane.chatonsky@mq.edu.au Contact via Email Unit Convenor / Lecturer Roger Casey roger.casey@mq.edu.au Contact via Email Credit points 2 Prerequisites (Admission to MAppFin or PGCertAppFin or GradDipAppFin) and ECFS866 Corequisites Co-badged status Unit description This...
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...The Wall Street Journal Private-Equity Firms Notch Up Gains but Face Investing Challenges; Strong Debt and Stock Markets Have a Flip Side By Ryan Dezember Feb. 20, 2014 In a year of record-setting profits, the big publicly traded U.S. private-equity firms were rewarded by investors with billions of dollars of new money for their next round of buyouts. Yet the same frothy debt and stock markets that have made it an ideal time for these firms to sell companies have made it increasingly difficult to buy new ones. "It was a challenging year to invest, particularly in the United States," Carlyle Group LP's co-founder and co-chief executive, William Conway, told investors Wednesday after the firm reported its fourthquarter and full-year earnings. "This was the flip side of robust public markets and low interest rates." The fourth quarter was Carlyle's most profitable as a public company, with earnings up sharply from a year earlier. Carlyle's economic net income, a measure of profits favored by buyout firms, was $576 million, or $1.64 a share, up from $182 million, or 47 cents a share, a year earlier. Analysts polled by FactSet forecast 96 cents a share. The Washington firm sold $6.3 billion in assets in the fourth quarter to fuel the gains. Those sales came predominantly from its corporate buyout funds, which shed big stakes in companies such as ratings firm Nielsen Holdings NV and Allison Transmission Holdings Inc. as well as entire companies. For the year, Carlyle reaped deal...
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...Private Equity 4/12/15, 7:31 PM Private Equity By root | November 25, 2003 DEFINITION Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet. The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company. INVESTOPEDIA EXPLAINS The size of the private equity market has grown steadily since the 1970s. Private equity firms will sometimes pool funds together to take very large public companies private. Many private equity firms conduct what are known as leveraged buyouts (LBOs), where large amounts of debt are issued to fund a large purchase. Private equity firms will then try to improve the financial results and prospects of the company in the hope of reselling the company to another firm or cashing out via an IPO. © 2015, Investopedia, LLC. http://www.investopedia.com/terms/p/privateequity...
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...GLOBAL PRIVATE EQUITY REPORT 2013 About Bain & Company’s Private Equity business Bain & Company is the leading consulting partner to the private equity (PE) industry and its stakeholders. Private equity consulting at Bain has grown 13-fold over the past 15 years and now represents about one-quarter of the firm’s global business. We maintain a global network of more than 400 experienced professionals serving PE clients. Our practice is more than three times larger than that of the next-largest consulting firm serving private equity funds. Bain’s work with PE spans fund types, including buyout, infrastructure, real estate, debt and hedge funds. We also work with many of the most prominent limited partners (LPs) to PE firms, including sovereign wealth funds, pension funds, financial institutions, endowments and family investment offices. We support our clients across a broad range of objectives: Deal generation: We help PE funds develop the right investment thesis and enhance deal flow, profiling industries, screening companies and devising a plan to approach targets. Due diligence: We help funds make better deal decisions by performing diligence, assessing performance improvement opportunities and providing a post-acquisition agenda. Immediate post-acquisition: We support the pursuit of rapid returns by developing a strategic blueprint for the acquired company, leading workshops that align management with strategic priorities and directing focused initiatives. Ongoing value addition:...
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...knowledge, skills and expertise, and those of your team • Learn new techniques direct from the industry experts • Keep abreast of current best practice • Improve day-to-day performance The BVCA is the leading industry body for private equity and venture capital worldwide. We have been delivering industry-leading training to prestigious corporate clients for over 28 years and have garnered a reputation as the pre-eminent provider of training solutions for the private equity and venture capital industry. Our renowned training programmes focus on providing solutions aligned with your needs and corporate objectives. Our position as the leading global association for the private equity and venture capital industry and our unrivalled knowledge ensure our clients receive leading industry intelligence and training delivered by industry experts. If your objective is to enrich your own skill set, or support the development of your team through investment in training, so that their enhanced knowledge increases operational efficiency and contributes to your company’s long-term success, we are committed to providing outstanding development solutions. Full details of our comprehensive training programmes, which have been specifically created for the private equity & venture capital industry, follow. For further information or to book your place, please telephone the BVCA training team on +44 (0) 20 7420 1800 to discuss your needs. CPD points available on all BVCA programmes. Visit www.bvca...
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...Integrated Case study AN ANALYSIS OF THE CASE MAN GROUP (A) January 2013 Integrated Case Study: Man Group (A) Contents Page Acknowledgements Executive Summary Chapter 1: Introduction 1 Chapter 2: Case brief 4 Chapter 3: Problem statement and Analysis 8 3.1 Problem statement for Man Group Plc (A) 3.2 Literature review 3.3 Proposed plan of analysis 3.4 Sources of data Chapter 4: Analysis and Findings 22 An assessment of the current position Chapter 5: Proposed solution to Problems 29 5.1 Integrated discussion of the analysis 5.2 Recommendations 5.3 Proposed plan of action 5.4 Limitations of the study, scope for further research Chapter 6: Application to another case 35 6.1 Background 6.2 Description of the comparator company’s situation 6.3 Testing the recommendations on the comparator company Appendices References Word count: 11,980 Acknowledgements My sincere regards and gratitude goes to Almighty God who gave me strength and will to complete my studies successfully. I give my deepest regards to my supervisor Dr. K. Vijay Shenai for his guidance, support and dedication towards all his students. I extend my regards to all my friends who supported me through my studies and were of immense help to me. My warm regards and love for my parents who have always been an inspiration to me and have always supported me throughout my studies, this would...
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...Get the inside scoop on investment banking careers in the Asia Pacific region! Read this extended excerpt of the all-new Vault Career Guide to Investment Banking, Asia Pacific Edition and get the inside story on investment banking careers, including: • An inside look at corporate finance, sales & trading, research and other major functions at investment banks. • An oveview of equity and debt markets in the region • A discussion of industry trends and corporate culture in Asia Pacific • Days in the life of investment bankers in Asia Pacific This PDF is an excerpted version of the full 198-page guide To get the complete guide: • Purchase your own print or e-Book version of the guide. Go to www.Vault.com/Asia. • More than 900 universities and MBA programs worldwide subscribe to the Vault Online Library, providing more than 4.5 million students worldwide with access to Vault's guides and career information. Contact your career center today to ask about access to the Vault Online Career Library. ABOUT VAULT Founded in 1996, Vault is the leading global media company focused on careers. With offices in North America, Europe, India and Asia, Vault provides graduates and young professionals worldwide with insider information on careers and education through its award-winning web sites and career guides. CAR E E RS VAU LT CA R E E R G U I D E TO INVESTMENT BAN KING A S I A P A C I F I C E D I T I O N INVESTMENT BANKING JUNG B. LEE, TOM LOTT and the staff of vault ...
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...1) What do you think of Zoots strategy till date? Did their business model make sense? Zoots was an innovative dry-cleaning chain that had been founded by Krasnow and Tom Stemberg (the founder of office supply giant Staples) in 1998. Krasnow and Stemberg each provided $200,000 in seed funding by themselves. And the first Zoots store opened that October and was served by a centralized processing facility located in Wilmington, Massachusetts. They expanded their business very aggressively. At first, the growth strategy was to both build out the scale of its first network by opening new stores to feed this hub and to open new regional networks with their own centralized processing facility. And they also grow by acquisition; they acquire a delivery business in 1999. They are growing very rapidly and revenue is well above industry average. However, he was caught off guard by the complexity of managing the centralized processing facilities and encounters some serious problems. By early 2000, Krasnow and the management team had decided to put the growth strategy on hold and focusing on operations. Later, they changed their focus on Improving facility efficiency and quality and Building up volume in existing networks. After a while, their operating begins to stabilized and back to track. By mid-2003, they hire a new CEO, which is very professional and suitable for the business. They the made more changes on their strategy. The most important is they transitioning residential...
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...1030711530 mGT 368, SECTION#2, NSU NAFIS IRTIZA, 1030711530 mGT 368, SECTION#2, NSU ASSIGNMENT ENTREPRENEURIAL DIFFICULTIES IN BANGLADESH ASSIGNMENT ENTREPRENEURIAL DIFFICULTIES IN BANGLADESH ABSTRACT Bangladesh is a developing nation with a lot of constraints and difficulties for entrepreneurs. One of the primary difficulties that entrepreneurs face is raising capital. Finding out what types of difficulties entrepreneurs face in raising capital, and how the government and private sector can help to eliminate them, is the subject of this report. This report is an attempt to critically evaluate and review the current problems of acquiring for entrepreneurs. The government itself has not shown concerns about the capital market and hence has not given it priority in the national budget, but even if it did it alone cannot ensure the development of the capital system for entrepreneurs. That is where the private sector needs to come in. This report will also identify the possible steps the private sector and government can take to eliminate the problems of acquiring capital for entrepreneurs. INTRODUCTION Successful entrepreneurs are a blessing to any economy. They bring new marketable ideas, products and innovation. They bring new technology for greater efficiency. They reduce unemployment by hiring people. They provide tax revenue to the government. They increase competition in the market and improve overall industrial productivity. Therefore, it is necessary that new...
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...SINGAPORE NUS BUSINESS SCHOOL Department of Finance BMA5318: Investment Banking (Summer I: May-June 2012) Instructor: Banikanta Mishra Office: BIZ 1 Level 7-77 Telephone: +91-943-707-5075 E-mail: banikant@ximb.ac.in Prerequisite: BMA5008 (Financial Management) COURSE SYNOPSIS: This course is a blended introduction to Investment Banking (IB). It would combine theory and practice. To buttress our understanding of practice, we would do some case studies and also have practitioners give a Street Talk every week; some of them may discuss live projects and I may pitch in with my experience with past ones I have been directly involved in. Moreover, we would have both qualitative and quantitative discussions on most topics, the latter mainly being numerical examples (not any rocket science or high-flying calculus). Though we would talk about the global scenario, our focus, whenever possible, would be on Asia. After gaining an idea into what IB is and understanding the basics of Trading, we would study in detail the capital-raising process, mainly Underwriting and Syndication. Here, we would learn about IPO and SEO and ADR and GDR as well as about NIF and RUF. We would also get familiar with Euromarket and the innovative Euro instruments like Euronote and Euro-CP as well as Eurobond and Euroequity. This would also give an opportunity to get a glimpse into Financial Engineering in debt and equity instruments as well as about Structured Financing. We would then...
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...Executive summary In this paper, an attempt is made to delineate the deficiencies of the existing financial system in Bangladesh to cater to financing needs of SMEs or new potential entrepreneurs and a proposal has been given to develop the venture capital industry to meet financing and non-financing needs of SMEs. SMEs play a vital role within Bangladesh’s economy in terms of creation of industrial outputs and generation of employment. Even though they play a significant role they face problems in securing investment or manage finance to develop their ideas or to expand their existing business. It is not possible for Bangladesh to accelerate economic growth without catering to the financing needs of SMEs, Thus, the paper proposes the development of the venture capital industry as an additional financial intermediary to Cater to financing and non-financing needs of SMEs. The paper discusses available sources of finance for SMEs and the Constraints of these sources. There are basically three sources from which SMEs may receive finance. These are banks, non-government organizations (NGOs) and the capital market. Then, we discuss the advantages that venture capitalists have over banks in catering to the funding needs of SMEs. It is argued that venture capitalists perform the role of ‘active investors’ by way of offering both financial and non-financial commitment to the investee company, which is essential in a market characterized by a high level of uncertainties. Also, it is argued...
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...Timing the Market – Buy / Sell Decisions Digression: Timing Buy / Sell Investment Decisions o Economies are cyclical. Stock markets go up and down. Industry sectors rise and fall. o An obvious investment strategy is -- buy at low prices, sell at high prices – with timing. o How easy is it for an expert to get the timing right? Pick the right time to trade stocks? Most professional mutual fund managers under-perform the market, consistently. Most amateur investors and traders do even worse than the professionals do. Throw darts at the Wall St. Journal’s NYSE quote page. You will out-perform 85% of all professional stock pickers over any given five or ten-year period! o Why do people “play the market”? Ego, herds -- and it is lots of fun. People lack discipline; they fail to compare their results with market averages for the same period. o In private equity investing, the same temptations are present. Try to time the market, time (buy at) an industry bottom, or invest at a country-risk bottom, sell at the top, etc. o If you base your private equity investments on market timing, you probably will not do any better than the average public market trader does. You will do rather badly. o The comparative advantages of a private equity investor are: (1) Access to a lot of legal insider information about the target company; (2) Ability to judge management skill after gathering lots of information; and (3) Ability to negotiate a specific deal...
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...MSc in Shipping Trade & Finance 2011/2012 Alternative Sources of raising capital in shipping corporations: Bridging the Funding Gap By Linos Alexandros Kogevinas 100021584 Supervisor: Dr. Giovanni Cespa Acknowledgments Having completed a rather long, but enjoyable year at Cass Business School , I feel obligated to thank a few people who helped me along the way. Firstly, I’d like to offer my most sincere thanks to my supervisor, Dr. Giovanni Cespa for accepting to supervise me and putting me on the right track with this dissertation. Following, I’d like to thank my family for their moral support throughout the year. Last but not least I’d like to thank the entirety of the staff at Cass who helped further my education throughout the year. To all of you, Thank you Abstract The goal of this thesis is to evaluate and present the main alternative sources of finance for shipping corporations in the scope of the post-2008 market downturn. By “alternative” the author refers to any source finance that is not vanilla financing i.e. bank debt. Lists of benefits and drawbacks for each alternative source will be presented for all parties of the transaction in question. This is done in order to present an evaluation that will facilitate the reader in understanding the value of each source as well as potential costs and risks. While there are numerous alternative sources that could be covered, the emphasis has fallen only on those that carry at least a...
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