quote of the week

Quote of the Week: Outmaneuvering Strategics in Food & Consumer Investing

Quote of the Week: Outmaneuvering Strategics in Food...

Strategic buyers have always dominated food and consumer industry M&A. If you go back a decade, they do anywhere from eighty nine to ninety percent of the deals, and last year they were 91%. So we always saw strategic corporate buyers as our primary competition and we focus on finding ways to outmaneuver them or compete with them … Who [...]

Quote of the Week: Finding Long Shots

Quote of the Week: Finding Long Shots

"Our main investment objective is to put money where money is scarce…And oil and gas, and especially oil in Alberta, is a sector that is under more stress than it has been in a long time."   Who said it: Bruce Flatt, CEO of Brookfield Asset Management   In Context:  There are still places in the world where capital is [...]

Quote of the Week: Hitting the Take Private Wall

Quote of the Week: Hitting the Take Private Wall

"The activists have gotten accustomed to [knowing that], if they start a process, PE will be there to buy it. That may be true in April 2015. I'm not sure if that's true forever." Who said it: Ryan Hinkle, Managing Director, Insight Venture Partners In Context: Industry insiders commented to The Deal on news this week that Salesforce.com is under [...]

Quote of the Week: No Rush to Risk

Quote of the Week: No Rush to Risk

I tend to think it is easier to prepare than predict. The best thing to do is know that eventually all of these unnatural built-up build ups ... will have an adjustment. Rather than spend too much time predicting when they will happen, maybe it's better to just prepare." Who said it: Joshua Friedman, founder Canyon Partners In context: A [...]

Quote of the Week: CEO Churn

Quote of the Week: CEO Churn

Collaboration with the private equity sponsor is something that most CEOs need to learn by trial and error. The level of transparency and partnership demanded by the general partner is often not something a senior executive is used to, especially if they previously ran a family business or corporate division. Who said it: Andros Payne, founder Humatica, management consultancy In [...]

Quote of the Week: Uncertainty Managers

Quote of the Week: Uncertainty Managers

The vast majority of subprime credit and stock analysts never expected this abrupt shift in the ‘system’s’ behavior. An understanding of complex systems patterns might have allowed them to recognize the underlying pattern at work. Analysts who did so would not have merely avoided a potential problem: they would have gained an edge over the competition.” Who said it: Diego [...]

Quote of the Week: Querying Tech Multiples and Models

Quote of the Week: Querying Tech Multiples and ...

…we can’t help thinking that the returns modelling, in some of the buyouts we are seeing, reflect some element of wishful thinking. Private equity firms seem to assume that they can continue to grow the top line at 10 per cent a year and improve margins, enabling them to double EBITDA over the next five years. In addition, they continue [...]

Quote of the Week: Fintech Ventures Lure Wall Street Elite

Quote of the Week: Fintech Ventures Lure Wall Street...

Earlier, you had to raise money and then start investing. But today, the world is awash with capital. So now you need the ideas first. If you have a viable project, then you will get financing very easily…" Who said it: Vikram S. Pandit, former CEO Citi In Context: It is not just junior investment bankers and freshly minted MBAs [...]

Quote of the Week: Confrontations with White Knights

Quote of the Week: Confrontations with White Knights

"The PEP team first showed up like a bunch of white knights and were very impressive … then they promptly turned hostile, which was quite confronting. But since then, the relationship has been a big success for us, them, and our other shareholders…"   Who said it: Greg Pritchard, Managing Director Energy Development   In Context: A rare first-hand account of [...]

Quote of the Week: With Asia Exits Weakening, PE Poised to Invest

Quote of the Week: With Asia Exits Weakening, PE ...

It is not a great time to exit. Markets are pretty choppy. IPOs are hard to access. Trade buyers are somewhat better. I would say this is a good time to be investing, rather than divesting, although we try to do both each year if we can.“ Who said it: Jean Eric Salata, Chief Executive, Founding Partner Baring Private Equity [...]

Quote of the Week: The Carbon Energy Gamble

Quote of the Week: The Carbon Energy Gamble

…it’s very dangerous to think that oil is going to recover so that it is worth investing in carbon energy. Once the storage issue is solved, and I do believe there will be a breakthrough in the next 5 to 10 years, technology moves much faster than you think. Once they solve that, quite frankly the carbon industry goes...   [...]

Quote of the Week: Add a Zero To That Offer

Quote of the Week: Add a Zero To That Offer

The valuations they were offering, I felt offended. I remember telling them, listen, if you don't add a zero to that; we're not going to consider it.”   Who said it: Abdulaziz Al Loughani, Vice Chairman and Executive Director of the USD 7 bn Kuwait National Fund for SME Development   In Context: Valuations for Internet startups were below other [...]

Quote of the Week: Family Offices Woo Tech Founders

Quote of the Week: Family Offices Woo Tech Founders

"We were approached by private equity groups initially, but when Vulcan Capital approached us we stopped right away.” Who said it: Pere Vallès, CEO Scytl In Context: In an article in Reuters, the CEO of Spanish startup Scytl, a platform provider for online voting and elections, outlined the benefits of family office funding over venture capital, as did several other [...]

Quote of the Week: New model for the next decade

Quote of the Week: New model for the next decade

In short, some Giants are realizing that harvesting PE Alpha in the decade to come will require breaking the existing model and doing things differently.   Who Said It: Ashby Monk, Executive Director, Stanford Global Projects Center   In Context:  The Giants that Dr Ashby Monk speaks of are multi-billion fund managers, sovereign wealth funds, pension funds and endowments who [...]

Quote of the Week: VC Meets Global Health Philanthropy

Quote of the Week: VC Meets Global Health ...

Biotech start-ups have truly become R&D for big-pharma distribution. Even as a VC, I am shocked at extent.” Who said it: Bob More, Senior Advisor to Bill & Melinda Gates Foundation In Context: The trend referred to by Bob More is the one that sees big pharma groups acquiring nimble startups to add new products, markets, and business streams, rather [...]