GARCIA, Ronance Adrian F. 24th November, 2013
4ABE Prof. Dimaculangan
“Private Equity Today and Tomorrow” The industry of business in its entirety has undergone a number of changes both good and bad over the last century. From the limitless amount of credit people had in the 1920’s, to the great depression that soon followed, with the popularity of manufacturing in the industrial age, over to the advent of technology development after the second millennium, time has changed how we conduct and treat our businesses. No matter what circumstance, the only thing that seemed to remain constant in all businesses is the understanding that it cannot function without capital. And although the internet obliterated certain walls of businesses such as geographic restrictions and costly marketing expenses, businesses would still have the need for capital. The need for business capital now brings us to the question of its procurement. There are a number of ways in which the budding entrepreneur or business prodigy can do this but perhaps one of the most effective ways in seeking funds for a business is through private equity.
Private equity or private equity funds is the combined effort of individuals in a certain organization seeking to pool in funds in order to finance high-risk and potentially high reward projects.
In its initial years, the private equity industry was a rage all over the American market. Its origins could be traced within the lines of very wealthy and privileged families such as the Rockefellers, Vanderbilts, Whitneys and Phippses. Soon after, these families started to include outsiders to select and oversee their investments. However, although these prominent families began private equity funding, pioneering this type of business ventures would have to be credited to Professor Georges F. Doriot of Harvard University for