Private Equity Minority Investments: An Attractive Financing Alternative for Family Firms

Private Equity Minority Investments: An Attractive Financing Alternative for Family Firms PDF

Author: Alexander M. Franke

Publisher: Diplomica Verlag

Published: 2015-08

Total Pages: 97

ISBN-13: 3959346212

DOWNLOAD EBOOK →

Private equity minority investments have become an increasingly attractive financing alternative for family firms. However, admitting a private equity investor as a minority shareholder seems to contradict with the objective of the owner family to preserve their continuous and unlimited influence on the businesses since they must at least partially cede control over the firm to the private equity investor. Therefore, the purpose of this book is to identify the primary decision drivers for family firm entrepreneurs in seeking private equity financing despite the therein related partial loss of control. By giving special consideration to the potential cooperation mechanisms between the shareholders, this book goes beyond the scope of previous studies. Cooperation is thereby considered as a prerequisite for the success of minority investments because due to its minority position, the private equity investor is not able to implement its value creation strategy against the will of the family firm entrepreneur.

Improving Private Portfolios with Alternative Investments. How Small Investors can benefit from Alternative Investments

Improving Private Portfolios with Alternative Investments. How Small Investors can benefit from Alternative Investments PDF

Author: Torben Lauer

Publisher: Diplomica Verlag

Published: 2017-11-01

Total Pages: 61

ISBN-13: 3961465800

DOWNLOAD EBOOK →

From a theoretical perspective, alternative investments should be used within every portfolio to increase diversification. The theory goes for institutional and for private investors. For small investors, however, some alternative assets are not accessible. The goal of this study is to evaluate how alternative investments have performed compared to common assets. Some of the available alternative investment possibilities are already in use for many private investors. It is positive that investors buy assets that are not listed on their brokerage account. However, to have efficient portfolios, the asset allocation can be further optimized with respect to Markowitz’s modern portfolio theory. The market for alternative investments is small and lacks liquidity. Therefore, the author evaluates their usefulness in terms of accessibility and availability. The findings of this study propose that alternative investments can help to increase portfolio diversification. A portfolio comprised only of alternative investments cannot outperform a traditional one. A combination of alternative assets and traditional assets, however, can outperform the broadly used combinations of equity and debt.

Private Equity Demystified

Private Equity Demystified PDF

Author: John Gilligan

Publisher: Oxford University Press

Published: 2020-11-04

Total Pages: 434

ISBN-13: 0192636804

DOWNLOAD EBOOK →

This book deals with risk capital provided for established firms outside the stock market, private equity, which has grown rapidly over the last three decades, yet is largely poorly understood. Although it has often been criticized in the public mind as being short termist and having adverse consequences for employment, in reality this is far from the case. Here, John Gilligan and Mike Wright dispel some of the biggest myths and misconceptions about private equity. The book provides a unique and authoritative source from a leading practitioner and academic for practitioners, policymakers, and researchers that explains in detail what private equity involves and reviews systematic evidence of what the impact of private equity has been. Written in a highly accessible style, the book takes the reader through what private equity means, the different actors involved, and issues concerning sourcing, checking out, valuing, and structuring deals. The various themes from the systematic academic evidence are highlighted in numerous summary vignettes placed alongside the text that discuss the practical aspects. The main part of the work concludes with an up-to-date discussion by the authors, informed commentators on the key issues in the lively debate about private equity. The book further contains summary tables of the academic research carried out over the past three decades across the private equity landscape including: the returns to investors, economic performance, impact on R&D and employees, and the longevity and life-cycle of private equity backed deals.

Private Equity Minority Investments

Private Equity Minority Investments PDF

Author: Judith Verena Söding

Publisher: Dike Publishers

Published: 2012

Total Pages: 0

ISBN-13: 9783037514207

DOWNLOAD EBOOK →

Triggered by the financial crisis starting in 2007, the private equity industry has entered a new investment cycle characterized by more conservative capital structures. As acquisition prices of target companies have remained comparatively high, the equity tickets to acquire control ceteris paribus have increased. In addition, deal flow of high-quality assets has reduced. In search of new investment opportunities, a number of private equity funds have broadened their focus to include minority investments. At the same time, the new market reality has led some owners of family firms to consider partnering with private equity funds to gain access to capital, as well as professional expertise, experience, and business contacts. Despite potential mutual benefits, minority investments carry considerable potential for conflicts between the business partners. In the absence of privately negotiated legal tools, private equity minority investors who invest in closely-held private family-controlled firms risk ending up with an economically significant investment with no de facto voice and control. In case of under-performance, they have hardly any ability to intervene or exit the investment. This study explores the possibilities and limitations of statutory and privately negotiated legal tools and arrangements that minority investors can use to protect their interests, to reduce the probability of opportunistic behavior by controlling shareholders, and to enhance their influence both at the shareholder and the board of directors level. The focus of this legal analysis is on voice and voice-related mechanisms or rights. Voice is gaining importance as private equity investors increasingly focus on strategic and operational value creation in addition to or instead of leverage effects. Voice helps ensure that the value-enhancing strategies devised at the outset of the investment are implemented as planned.

Family Firms in Latin America

Family Firms in Latin America PDF

Author: Claudio G. Müller

Publisher: Routledge

Published: 2018-09-03

Total Pages: 231

ISBN-13: 1351580698

DOWNLOAD EBOOK →

This is one of the first books of its kind to highlight family firms in a Latin American context, helping students to understand the distinctive nature and challenges of Latin American family businesses and how these issues compare to family businesses around the world. Building on their experience in teaching, research, speaking, and consulting on the subject of family firms in Latin America, the editors explain the need to implement and adapt traditional frameworks in the changing Latin American reality. Each section provides background on the most important topics in the management of family firms, including strategy, entrepreneurship, and performance, followed by illustrative cases and a discussion of how this knowledge is similar to or different from other parts of the world. The book’s clear writing and in-depth approach will appeal to undergraduate and graduate students of international business, business in Latin America, and family business.

Private Equity Investments in Family Businesses

Private Equity Investments in Family Businesses PDF

Author: Götz Müller

Publisher: V&R unipress GmbH

Published: 2013

Total Pages: 242

ISBN-13: 3847100939

DOWNLOAD EBOOK →

English summary: There is only limited academic attention paid to the topic of Private Equity Investments in Family Businesses although the topic is becoming increasingly relevant for both entity types. In order to advance the field, this study focuses on the organizational metamorphosis of Family Businesses as a response to a Private Equity investment. In specific, changes in performance and its potential determinants were researched by means of eight case studies. The results indicate a neutral to beneficial performance development when Private Equity companies acquired a majority stake and a neutral development in case of a minority investment. Analyses further revealed that the positive performance improvement correlated with an organizational context that nurtured higher levels of individual discipline and stretch as well as organizational values that became aligned with market imperatives. German description: Investitionen von Private-Equity-Firmen in Familienunternehmen werden fur beide Parteien zunehmend relevanter. Um diesem Gebiet Rechnung zu tragen, wurde die Veranderung der wirtschaftlichen Leistungsfahigkeit von Familienunternehmen im Zuge einer Private Equity Investition in acht Fallstudien untersucht. Die Resultate zeigen eine neutrale bis positive Veranderung der Leistungsfahigkeit wenn Private-Equity-Hauser eine Mehrheitsbeteiligung in Familienunternehmen erwerben. Bei Minderheitsbeteiligungen konnte keine weitreichende Veranderung festgestellt werden. Weiterhin zeigen die Ergebnisse, dass die untersuchten Mehrheitsbeteiligungen einen Kontext entwickeln, welcher das individuelle Leistungsverhalten des Managements zu einem hoheren Masse fordert. Dies beruht vor allem darauf, dass sich jene Firmen zunehmend Umwelt- und Marktbedingungen offnen und neue Operationsweisen adaptieren.

Private Equity

Private Equity PDF

Author: Lewis Invest

Publisher: Independently Published

Published: 2019-11-06

Total Pages: 163

ISBN-13: 9781706204060

DOWNLOAD EBOOK →

You Are About To Get A Full Glimpse Into The Inner World And Workings Of Private Equity To Use It As An Investor With Confidence Knowing Fully Well What You Are Getting Yourself Into! Of all the ways of raising capital, private equity is perhaps one of the least talked about methods. You will hear a lot about venture capital, debt financing and much more but most times, private equity is mentioned in passing as one of the ways of raising funds for a business. Nobody talks about how to use private equity to raise money for businesses and nobody talks about how to venture into private equity as an investor. It seems like something that only big monied people can use. But that's not the case, ordinary people like you and I can invest in private equity firms and tidy returns on investment. That's not all; ordinary businesses (not just tech unicorns) are increasingly tapping into private equity funds to finance their growth and operations. Are wondering how to 'get in' into the world of private equity, whether as an investor or a business seeking private equity financing? Do you want to uncover the veil of secrecy that has clouded private equity funds for years so that you too can go all in and benefit from it? This book will help you to achieve just that by covering the A-Z of private equity so that even if you are a complete beginner, you have expert level understanding of the inner workings of private equity funds so that you can use that to your advantage. In it, you will learn: The basics of private equity, including what it is all about, the terms used in private equity, the different roles played by different people in a private equity fund, their rights etc. The fee structure and economics of PE or who earns what? How PE funds have evolved to become what they are today How private equity became an important part of fund portfolios How PE funds invest in minority investments, why sellers prefer minority stake, what PE buyers see in a minority stake etc. How to make minority deals to work like a charm How to tap into the power of growth equity effectively Buyouts in PE, including how they work, how to analyze risks, how to make the most of them, funding, various buyout approaches and more The interesting concept of secondaries, with respect to PE, including how to make the most of it How principal investors can up their game in private equity How private equity in a recession can catch the upside How and where to add digital to your private equity playbook And much more! Stop using "private equity" phrase without having a comprehensive understanding of it! Use this book to usher you into the knowledge of everything to do with private equity! Click Buy Now With 1-Click or Buy Now to get started!

Alternative Investments: A Primer for Investment Professionals

Alternative Investments: A Primer for Investment Professionals PDF

Author: Donald R. Chambers

Publisher: CFA Institute Research Foundation

Published: 2018

Total Pages:

ISBN-13: 1944960384

DOWNLOAD EBOOK →

Alternative Investments: A Primer for Investment Professionals provides an overview of alternative investments for institutional asset allocators and other overseers of portfolios containing both traditional and alternative assets. It is designed for those with substantial experience regarding traditional investments in stocks and bonds but limited familiarity regarding alternative assets, alternative strategies, and alternative portfolio management. The primer categorizes alternative assets into four groups: hedge funds, real assets, private equity, and structured products/derivatives. Real assets include vacant land, farmland, timber, infrastructure, intellectual property, commodities, and private real estate. For each group, the primer provides essential information about the characteristics, challenges, and purposes of these institutional-quality alternative assets in the context of a well-diversified institutional portfolio. Other topics addressed by this primer include tail risk, due diligence of the investment process and operations, measurement and management of risks and returns, setting return expectations, and portfolio construction. The primer concludes with a chapter on the case for investing in alternatives.

Private Equity

Private Equity PDF

Author: Lewis Invest

Publisher: Independently Published

Published: 2019-12-29

Total Pages: 164

ISBN-13: 9781652686385

DOWNLOAD EBOOK →

You Are About To Get A Full Glimpse Into The Inner World And Workings Of Private Equity To Use It As An Investor With Confidence Knowing Fully Well What You Are Getting Yourself Into! Of all the ways of raising capital, private equity is perhaps one of the least talked about methods. You will hear a lot about venture capital, debt financing and much more but most times, private equity is mentioned in passing as one of the ways of raising funds for a business. Nobody talks about how to use private equity to raise money for businesses and nobody talks about how to venture into private equity as an investor. It seems like something that only big monied people can use. But that's not the case, ordinary people like you and I can invest in private equity firms and tidy returns on investment. That's not all; ordinary businesses (not just tech unicorns) are increasingly tapping into private equity funds to finance their growth and operations. Are wondering how to 'get in' into the world of private equity, whether as an investor or a business seeking private equity financing? Do you want to uncover the veil of secrecy that has clouded private equity funds for years so that you too can go all in and benefit from it? This book will help you to achieve just that by covering the A-Z of private equity so that even if you are a complete beginner, you have expert level understanding of the inner workings of private equity funds so that you can use that to your advantage. In it, you will learn: The basics of private equity, including what it is all about, the terms used in private equity, the different roles played by different people in a private equity fund, their rights etc. The fee structure and economics of PE or who earns what? How PE funds have evolved to become what they are today How private equity became an important part of fund portfolios How PE funds invest in minority investments, why sellers prefer minority stake, what PE buyers see in a minority stake etc. How to make minority deals to work like a charm How to tap into the power of growth equity effectively Buyouts in PE, including how they work, how to analyze risks, how to make the most of them, funding, various buyout approaches and more The interesting concept of secondaries, with respect to PE, including how to make the most of it How principal investors can up their game in private equity How private equity in a recession can catch the upside How and where to add digital to your private equity playbook And much more! Stop using "private equity" phrase without having a comprehensive understanding of it! Use this book to usher you into the knowledge of everything to do with private equity! Click Buy Now With 1-Click or Buy Now to get started!

Private Equity in Action

Private Equity in Action PDF

Author: Claudia Zeisberger

Publisher: John Wiley & Sons

Published: 2017-06-09

Total Pages: 487

ISBN-13: 1119327997

DOWNLOAD EBOOK →

Global Best Practice in Private Equity Investing Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment. The case studies in this book cover the full spectrum of private equity strategies, including: Carve-outs in the US semiconductor industry (LBO) Venture investing in the Indian wine industry (VC) Investing in SMEs in the Middle East Turnaround situations in both emerging and developed markets Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read. As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets. Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.