Private Equity – How to balance risks versus opportunities

Private Equity – How to balance risks versus opportunities This year’s Oxford Symposium (13-14 December) on Risk Management in Private Equity asks how investors can balance risks versus opportunities in order to maximize risk-adjusted returns – in other words, risk management as a value add. This article gives insights into the focus topics of the symposium and provides food for thought to investors on how to maximize risk-adjusted returns.     Mind the... [more]

Brexit – The great disorder under the Heavens?

Brexit – The great disorder under the Heavens? It looks that the financial industry bet the wrong way on the biggest market event since the 2008 financial crisis. The Brexit referendum’s outcome has already been called ‘the greatest Black Swan event of the millennium’ (personally, I believe that this unexpected result rather falls into the category of what we practitioners refer to in our daily work as ‘king... [more]

Trees that are slow to grow bear the best fruit

Trees that are slow to grow bear the best fruit   Private equity is estimated to be less than 2% of all assets managed internationally. It is – at least in theory – an inherently contrarian asset class. But being countercyclical and contrarian is difficult. For illustration, a few days ago I read an article that predicted the ‘denominator effect’ to return. The news was dated April 1st, so I... [more]

The Private Equity Risk Stalemate

The Private Equity Risk Stalemate Recently I had a longer debate with the founder of a software company who argued that there is no market for sophisticated solutions (like value-at-risk) for quantifying private equity risks. I respect this person’s experience and judgment and, sadly, I tend to agree. I use the word ‘sadly’ as risk management (in the sense of balancing threats versus opportunities) is... [more]

Three Things to Remember when Investing in Quants: an Interview with Michael Richter

Three Things to Remember when Investing in Quants: an Interview with Michael Richter High net worth individual investor and 40 year financial services veteran Michael Richter shares his insights about due diligence on quants. Three things to remember when investing in quants Operational due diligence - how does your manager segregate controls Half lives, hypotheses and what to look out for before you invest Ask these questions when getting into the black box The... [more]

Disrupting Foreign Exchange with Blockchain

Disrupting Foreign Exchange with Blockchain Last week Lykke announced a competition to build a new and superfast foreign exchange and settlement platform based on blockchain. Its Swiss founder is Richard B. Olsen. He was a fintech founder long before that buzzword entered our vocabulary. In the eighites, he established a real time financial information system and in the nineties, a Forex trading platform startup that... [more]

Modest Start to Global Fintech Investment in Q1 2017

Modest Start to Global Fintech Investment in Q1 2017

KPMG has published its Pulse of Fintech, which covers the global fintech industry performance for Q1 of 2017. KMPG’s research finds global fintech investment to have a modest, yet solid start to the year, with a few strong performers to lead the way.   Global fintech investment falls slightly   The KMPG research shows the first three months of the [...]

Luxembourg Eyeing to be EU’s New Fintech Innovation Hub

Luxembourg Eyeing to be EU’s New Fintech ...

Most of the today’s startups don’t know borders – Innovators want to just go where other innovators are, especially in fields like fintech. The relative ease at which startups can move around has also caused plenty of countries and cities to try to attract the freshest talent. The latest attempt is by Luxembourg, which has just opened a new innovation [...]

Fintech Attracting Young Talent and Tech-Savvy Users

Fintech Attracting Young Talent and Tech-Savvy Users

Fintech companies are new and innovative, focused on providing seamless digital technology services to customers. It isn’t much of a surprise then to find out the user base tends to be young and tech-savvy, with fintech businesses scouting for the most refresh talent straight from the business schools.   Report finds newly emerging economies most excited   Capgemini together with [...]

Nasdaq Enters the Race to Attract Fintech Companies

Nasdaq Enters the Race to Attract Fintech Companies

Nasdaq announced on Wednesday it’s launching a dedicated venture investment unit to find the best fintech firms to collaborate with. While the investment program has unofficially been operating since the late-2015, the new unit will look to harness more long-term benefits to Nasdaq’s client base. It could also increase competition in the fintech sector in terms of investments.   Looking [...]

Private Equity Hungry for Tech Deals

Private Equity Hungry for Tech Deals

Private equity has not always been in love with the technology sector. A few decades ago, tech deals were considered a poor bet for private equity firms. Ideas were not thought to outweigh physical assets as an investment opportunity.   But things have changed – technology is a hot investment opportunity for firms, with many of them looking hungrily for [...]

MoneyGram Gets a Sweetened Deal from China

MoneyGram Gets a Sweetened Deal from China

The US fintech firm MoneyGram has received an increased buyout deal from China’s Ant Financial. The reports suggest the Chinese company increased its bid to buy the fintech firm by 36%, but regulatory hurdles are still on the horizon.   Improving the bid to acquire the fintech firm   Ant Financial, which is an Alibaba subsidiary, has offered to buy [...]

Brexit is Pushing Away Fintech Firms

Brexit is Pushing Away Fintech Firms

The International Fintech Conference took place in London on Wednesday and the message from fintech companies was: stay away from London. The reason for such a stark message was UK’s decision to leave the European Union last June. However, government officials were also in hand to send a different message.   Straight talk from a fintech ‘unicorn’   The most [...]

Australian Fintech Startups Celebrating

Australian Fintech Startups Celebrating

Australian fintech startups are having a good year. Investment has been increasing and the industry is becoming a mainstream player in the AUS$150 billion financial services sector. What’s ahead for the industry now?   Strong investment drives the change   Much of the strength in the industry has been driven by increased investment in Australian fintech startups. In 2015, the [...]

Private Equity Brews Another Big Investment

Private Equity Brews Another Big Investment

TSG Consumer Partners announced it has bought a stake in a UK craft beer company. The deal leaves the US private equity firm with a 22.3% stake in BrewDog, with the brewer already considering an initial public offering.   The deal's finer details   BrewDog started in 2007 when founders James Watt and Martin Dickie began their venture in the [...]

Private Equity Fundraising Remains Strong

Private Equity Fundraising Remains Strong

Private equity is continuing its strong performance in terms of fundraising. The latest data shows that despite deal-making slowing down, fundraising activity is breaking records – the future is set open for big deals.   North American funds making gains   Preqin’s latest research into the first quarter has highlighted strong fundraising efforts, especially by North America-focused funds. These funds [...]

Preqin: PE Buyout Deal Activity Slows in Q1

Preqin: PE Buyout Deal Activity Slows in Q1

Private equity deals have not witnessed as strong a start to 2017 as many would have hoped. The latest data highlights decrease in buyout deal activity, adding fuel to concerns deal-making in the industry is slowing down.   What to expect from Q1?   ValueWalk reports deal volume to stand at 970 transactions in the first quarter of 2017. The [...]

TPG’s Plans to Buy Fairfax Media Stalled, But Not Scrapped

TPG’s Plans to Buy Fairfax Media Stalled, But Not ...

Private equity firm TPG might have suffered a blow to its plans of taking over Fairfax Media, but the US-based firm is unlikely to walk away from plan altogether. The Australian publisher still has value to offer for the firm but its next move is not known.   Surging stock price to stall the buyout attempts   DealMarket reported on [...]

Private Equity Making Bold Moves

Private Equity Making Bold Moves

Private equity firms are making some bold moves on the market. Analyst reporting on the industry say the sector has turned its focus on two trends: investors buying debt to go with equity positions and firms cherry-picking buyers for loans.   Raising its bets   Private equity firms are not just taking distressed companies private, but are also injecting loans [...]

Australia’s Fairfax Media Targeted by Private Equity

Australia’s Fairfax Media Targeted by Private ...

Private equity firm TPG Capital is looking to make a move on the Australian Fairfax Media Ltd. The news of a possible bid broke out on Wednesday and the shares in Fairfax Media saw an immediate boost. However, TPG might not have set its eyes on the whole organisation and a possible sale might result in the breakup of the [...]

Private Equity Deal Helps Save Jobs

Private Equity Deal Helps Save Jobs

A British heritage retail chain has been rescued by private equity in a last minute pre-pack administration deal. Jones Bootmaker was almost destined to go under until private equity firm Endless was able to make a deal with the retailer’s current private equity owners, Alteri.   The Leeds-based private equity firm had reportedly been talking to the distressed company since [...]