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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 [...]

Private Equity – How to balance risks versus opportunities

Private Equity – How to balance risks versus ...

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 [...]

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 [...]

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 [...]

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 [...]

Bedazzled? – The Lure of Co-Investing

Bedazzled? – The Lure of Co-Investing

9/10 December 2015 saw the second edition of the Oxford Symposium on Risk Management in Private Equity, organised by the Saïd Business School’s Private Equity Institute in cooperation with my company, LDS Partners. Nearly 70 academics and industry practitioners participated this time, an increase compared to last year and close to the lecture theatre’s maximum capacity. The Symposium was held [...]

5 Cures for Portfolio Troubles

5 Cures for Portfolio Troubles

The troubles pension funds and other institutional investors are having with their private equity (PE) portfolios have been making headlines, and regulators are reacting with more oversight. There is talk of diminished PE returns and a broken PE business model. Nevertheless, some industry experts still see potential in private equity, albeit with a healthy dose of applied knowledge and understanding [...]

Investor Video: Fund of Funds Investor, Michael van Biema of van Biema Value Partners, on Due Diligence and Advice for Hedge Fund Managers

Investor Video: Fund of Funds Investor, Michael van ...

In partnership with $ Bytes we're featuring a series of video interviews with top global investors. This time we're excited to present Michael van Biema,  the founder and managing principal of van Biema Value Partners,  a SEC-registered investment adviser established in 2004, specializing in creating portfolios of small, deep value-oriented hedge funds around the globe.   Four questions that Michael asks [...]

5 Ways Using a Deal Flow Management Tool Makes Your Life Easier

5 Ways Using a Deal Flow Management Tool Makes Your ...

Private equity investors are able to enjoy a multitude of online platforms these days that have completely transformed the way deals are done. Finding new investment opportunities is increasingly easier and quicker. Connecting with potential investors and investment opportunities can happen around the clock, as you don’t need to get each stakeholder in the same place at the same time. [...]

The Rise Of Online Private Equity Deal Platforms

The Rise Of Online Private Equity Deal Platforms

14 years of excellence in corporate finance and business strategy… Since 2001, Financier Worldwide has provided valuable information on corporate finance and board-level business issues through its monthly print magazine and exclusive website content. As a leading publisher of news and analysis on this dynamic global market, the organisation is recognised as a valued source of intelligence to the corporate, [...]

Trust in Finance Professionals Grows With a Social Presence

Trust in Finance Professionals Grows With a Social ...

Social media is everywhere. From hashtags on television shows to social account details on business cards, it’s impossible to escape the way it dominates our lives today.   Yet, it is still a relatively unknown world for many finance professionals.   Much of this is because social media takes time; something busy finance professionals often don’t have. Social media use [...]

Moving with the Times with Online Private Equity Platforms

Moving with the Times with Online Private Equity ...

Everyone ‘knows’ the internet is where the big opportunities lie. The ways in which we, as a global community, use the internet and various online platforms are evolving all the time. However, there are still many examples of where certain things, both in terms of individuals’ personal life as well as across business or industry, meet with resistance when it comes [...]

Eight Tips to Work More Effectively with Boards and Investors

Eight Tips to Work More Effectively with Boards and ...

An informed and educated board benefits PE-backed companies and it is possible for CEO’s to make influence that situation. In a blog post in Entrepreneur Country investor Mark Suster offers the following eight tips which we summarized.   1. Email updates frequently Do over-communicate. Investors and board members who know your strategic objectives can advocate on your behalf when they [...]

Was Private Equity von Online Dating lernen kann

Was Private Equity von Online Dating lernen kann

Noch vor wenigen Jahren galten Menschen, die ihren privaten Partner über Online-Plattformen kennen gelernt haben, als “schwer vermittelbar”. Heute ist die Online-Partnersuche akzeptiert, die Vorteile verstanden, und jemand mit einer neuen Liebe wird schon fast standardmässig gefragt, welche Dating- Plattform vermittelt hat. Als ähnlich “schwer vermittelbar” werden Unternehmen angeschaut, die über Online- und Crowdfunding- Plattformen nach Finanzierungsmöglichkeiten suchen. Zu Unrecht. [...]

Globalisation of Private Equity: How PE Can Benefit By Going Online

Globalisation of Private Equity: How PE Can Benefit ...

By Urs Haeusler Investors in private equity are looking beyond their home markets in search of returns that outperform fixed income investments and the public markets. Foreign investing makes the due diligence process even more critical to success.   Tasks like sourcing and screening deals, valuation, finding local partners and advisers, negotiating and contracting become more challenging and complex. One [...]