In the last few months China’s Private Equity revolution got a lot of attention due to the Focus Media LBO, touted as largest to date. Apart from size alone, I do think the shift from minority non-control investments to LBOs is very interesting. While I leave the regulatory and financial engineering aspects of these changes […]
I’m at an operating partner dinner in Calgary and this provided a great background for a conversation on the wide variety of operating partner models. Interestingly our firm holds these dinners around the world from New York to Beijing, London, Toronto, Singapore and other PE centers. We have seen the operating models work great in […]
A great new book recently hit the shelves by Jason Scharfman. While the topic is operations due diligence – this is the first book of its kind to get beyond financial due diligence into the risk in the operations of the business. What is uncovered in due diligence gives the eventual buyers an […]
While talking about refining business models is very common in Venture Capital discourse it is rarely discussed in PE literature. Bigger companies can benefit just as much from a structured review of the business model that leaves the world of spreadsheets and LBO models and brings management to the fundamental question – how do we […]
Since 2008 there has been increasing focus on operational value creation and even firms that traditionally shunned operating groups established a role for portfolio support or a resources team. While PE organizations may be shifting to seeking more of the alpha in improved sales and operations, PE conferences and associations still seem to be primarily […]
Value creation from a minority position has always been more difficult. Beyond the obvious reasons (minority vote and marginal board presence) there are several other challenges. Markets with dominant minority positions like MENA, India and Brazil for example have other similar characteristics:
– The owners / promoters want to retain control of the business and […]
One of my favorite reports is the country attractiveness index published by IESE, the business school in Barcelona. Its primary audience is Limited Partners seeking validation for country and geographic risk within their allocation for alternative assets. I also think it is a great barometer of global geopolitics and economics.
Countries are ranked […]
Of the many surveys that come out of the PE industry I find the McGladrey Private Equity Survey the most insightful.
For starters, it focuses on value creation strategies, on building and expanding businesses vs. financial engineering. In that sense it is more universally applicable to business outside private capital. I also find it refreshing […]