Good news for those looking to invest: the barrier to entry for private equity has been eased. The usual rule of “2 and 20” – 20% of the profits, plus a 2% annual charge – has been lowered in favor of the investors. According to The Economist (“Fees for Hedge...more
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Interested in investing in private equity, but not sure what it’s about? Here are some resources for learning about private equity in general and Urbana Varro specifically. Private Equity Funcast. Hosted by Devin Matthews and Jim Milbery, this podcast takes a look at private equity in a fun, laid-back atmosphere....more
As we saw two weeks ago in the Urbana Varro post: Private Equity Backed Companies Versus Comparable Publicly Traded Companies, Herb Engert’s study (”Private Equity’s Value Creation Secrets”) showed that companies backed by private equity firms outperform their publicly-traded competitors 2-to-1, earning around twice the EBITDA growth. His article goes...more
As Forbes explores in the Global Private Equity Report, there are three types of Private Equity Firms that made money over the last year. The first type had mostly failed investments, but one extremely lucky pick that made up for it all. About 29% of the funds fit into this...more
In Herb Engert’s article, Private Equity’s Value Creation Secrets, he talks about how his company performed a study on 230 companies backed by private equity and their portfolio exits between 2006 and 2012. They found that companies backed by private equity showed EBITDA growth around twice the rate of their...more
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