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]

Private Equity and Risk Management – Nitty Gritty or Big Picture?

Private Equity and Risk Management – Nitty Gritty ...

The role of the risk manager overseeing quoted assets is difficult to transfer to private equity. For illiquid assets risk management can add the most value before investing starts, i.e., designing and communicating the investment strategy. Risk management in private equity needs to deal with the big picture, the portfolio, and should not get lost in details.   As I [...]

Stada Says No to Private Equity – For Now

Stada Says No to Private Equity – For Now

German pharmaceutical company Stada revealed on Thursday that it has rejected two competing private equity offers. However, the company is ready to strike a deal and has given both groups time to sweeten their bids.   Stada’s decision   In the official statement, the company said, “The Executive Board and the Supervisory Board Mutually agree that the indicative bids do [...]

Asian Private Equity Market Facing Uncertainty

Asian Private Equity Market Facing Uncertainty

The private equity market in Asia-Pacific (APAC) has been growing steadily, but the ‘buy low, sell high’ era might be about to end. According to Bain & Company’s latest reporting on private equity performance in the region, the industry could be facing higher uncertainty and APAC would need to continue its resilient march to identify new sources of value to [...]

Private Equity Cuddles Up with a Toymaker

Private Equity Cuddles Up with a Toymaker

A private equity-led group has bought one of the biggest independent toymakers on the market. Private equity firm Privet Capital announced its buyout of Vivid Toy Group. The UK-based toymaker is behind big toys such as Moshi Monsters and Care Bears.   The story of the toymaker   Vivid Toy Group started in 1993 by making toys under licence to [...]

Swiss Digital Finance Conference 2017

Swiss Digital Finance Conference 2017

CEO Urs Haeusler will be discussing the Fintech ecosystem in Switzerland. When: 23 March 2017 / 8:45 am - 5:30 pm Where: Campus Zug-Rotkreuz / Lucern University of Applied Sciences and Arts Join the conference now!

Insurers Increasingly Interested in Private Equity

Insurers Increasingly Interested in Private Equity

Private equity is going through a strong period. The alternative asset class has been shown to be among the top diversification options for investors, but others are starting to look to the sector as well. The Financial Times published a post on Monday to highlight insurers increasing interest to diversify and to look in private equity.   What is behind [...]

Does Private Equity Have a Dry Powder Problem?

Does Private Equity Have a Dry Powder Problem?

Private equity is constantly looking to break records. Last December, the record-breaking figure on everybody’s lips was $820 billion. According to Preqin, this was the amount of dry powder private equity firms had available for investments. Does it show the industry to have a problem?   Deals aren’t getting any cheaper   Although private equity funds stood on top of [...]

Shawbrook Rejects a Major Private Equity Bid

Shawbrook Rejects a Major Private Equity Bid

When companies are faced with a lucrative private equity deal, the most common response is to take the deal quickly. Sometimes this doesn’t happen and it can leave investors and analysts puzzled. Shawbrook bank decided to go the opposite way and rejected a £825 million takeover bid – for the second time.   The UK lender had been approached by [...]

KKR Raises a Large Americas-Focused Private Equity Fund

KKR Raises a Large Americas-Focused Private Equity ...

Private equity firm KKR has raised a $13.9 billion fund. The fund will focus on private equity deals in the US, Canada and Mexico and it is the largest fund to focus on the region. The firm announced the KKR Americas XII Fund on Monday.   The fund’s objectives   KKR is set to invest around $1.4 billion from the [...]

Private Equity Firms Making Exits in the UK

Private Equity Firms Making Exits in the UK

Monday started with a string of exit announcement by private equity firms in the UK. Among the firms either looking for a sale or firms, which have already found a buyer are Electra Private Equity, Better Capital and TDR Capital. The companies the firms are dropping from their portfolios include gym chain, struggling retail business and caravan holiday business.   [...]

Booming Private Equity Buyout Levels in the UK

Booming Private Equity Buyout Levels in the UK

The start of the year has witnessed record levels of private equity buyouts of UK companies. The deal value and number suggest investors are opting for putting their money work, even though the markets might face turmoil in the coming months.   Record level deal numbers   In the first two months of the year, 30 global private equity buyouts [...]

Private Equity Hopes Remain High for Trump Era

Private Equity Hopes Remain High for Trump Era

Some of the world’s largest buyout funds have outlined their hopes for favourable taxation under Trump. Executives believe the industry is going to see bullish behaviour in the coming months and hopes the Trump Administration will soon announce the tax reforms.   Trump gave his first speech to Congress on Tuesday. He didn’t reveal a lot of information regarding his [...]

Trump’s Speech Offered Little New Details

Trump’s Speech Offered Little New Details

US President Donald Trump addressed the Congress for the first time on Tuesday. His speech revived many of his campaign themes but offered little new details on policies. There were also a few major omissions during the speech – corporate tax rate cut and relaxation of financial regulation were not mentioned.   Trump’s speech had a more conciliatory tone to [...]

KKR Grows its Tech Portfolio

KKR Grows its Tech Portfolio

Private equity firm KKR continues to grow its tech portfolio. The firm invested $50 million in Cherwell Software to help the software company compete with its rivals. It’s likely the IT company will use the investment in order to make an acquisition to expand its reach.   The software company has made its mark by offering codeless solutions to fix [...]

SoftBank Closing In on a US Startup

SoftBank Closing In on a US Startup

SoftBank is close to finalising another deal, according to CNBC. This time the Japanese conglomerate has set its eyes on a US startup WeWork. The office-sharing startup is expected to be worth over $3 billion and it would be yet another step for SoftBank to expand beyond the technology and telecoms sector.   According to CNBC reports, the deal is [...]