WHARTON ON PRIVATE EQUITY

@赵娜Christina：很让人激动的资料，分享下～更多资料请点击：#PE/VC知识分享#PRIVATEEQUITYPrivateequityfundscurrentlyhavearound$2trillionincapitalcommittedglobally,fromafigureofaround$8billionintheU.S.in1991.Buyoutfundsmanageabouttwothirdsofthecapitalinthissectorand,withleverage,theycontrolaninvestmentportfoliothatisseveraltimesthebasecapital.OnlineOnlineOnlineOnlineCourse:Course:Course:Course:WhartonWhartonWhartonWhartonAdvancedAdvancedAdvancedAdvancedSeminarSeminarSeminarSeminarononononPrivatePrivatePrivatePrivateEquityEquityEquityEquityOnlineOnlineOnlineOnlineCourseCourseCourseCourseWharton'sAdvancedSeminarinPrivateEquityisavailableonlinewithfull-lengthvideosoftheclassandin-depthinterviewswiththeindustryleaderguestlecturers.Wharton'sAdvancedSeminaronPrivateEquity(Financecourse895and395)examineshowprivateequity(PE)firmsuseavarietyoftechniquestoearnprofitsforinvestorsbyunearthingunrealizedvalueintargetcompanies.Thepresenters,executivesatPEfirmsaroundtheworld,describehowdifferencesinregionalcultures,businesspractices,andpoliticalandeconomicenvironmentsinfluencePEstrategies.Availableonlinearearticlesonmostclasssessionsfromthiscourseandinterviewswiththepresenters,manyofwhomareWhartonalumni,alongwithfull-lengthvideosofmostclasssessions.Knowledge@WhartonKnowledge@WhartonKnowledge@WhartonKnowledge@WhartonononononPrivatePrivatePrivatePrivateEquityEquityEquityEquityKnowledge@Wharton,theonlinejournaloffacultyresearchandcommentary,hascoveredtrendsinprivateequityinvestmentforoveradecade.Readfull-lengtharticlesonprivateequityfromKnowledge@Wharton'sarchive.WhartonWhartonWhartonWhartonPrivatePrivatePrivatePrivateEquityEquityEquityEquityReviewReviewReviewReviewPublishedbyKnowledge@WhartoninconjunctionwiththeWhartonPrivateEquityClub,theWhartonPrivateEquityReviewprovidesanannualoverviewoftrendsinprivateequityinvestment.@赵娜Christina：很让人激动的资料，分享下～更多资料请点击：#PE/VC知识分享#THEWORLDOFPRIVATEEQUITY:ABATTLEOVERVALUEN.N.N.N.BulentBulentBulentBulentGultekin,Gultekin,Gultekin,Gultekin,AssociateAssociateAssociateAssociateProfessorProfessorProfessorProfessorofofofofFinance,Finance,Finance,Finance,TheTheTheTheWhartonWhartonWhartonWhartonSchoolSchoolSchoolSchoolThefirstsessionfromN.BulentGultekin'sAdvancedSeminarinPrivateEquityrelivestheintensebiddingforRJRNabiscoin1988,amultibillion-dollarbattlethatgavebirthtobig-timeleveragedbuyouts.Thelessonathand:howdoyouvalueatargetcompany?AgroupofRJRNabisco'stopmanagersapproachedtheirboardofdirectorsinOctober1988withanunusualandunexpectedoffer:theywantedtoborrowbillions,usingthecompanyitselfascollateral,andtakethepubliclytradedtobaccoandfoodconglomerateprivate.Inapubliccompany,thedirectors'jobistodothebesttheycanfortheshareholders,andinmanyrespectsadealofthistype,onthisscale,wasunchartedterritory.Forthedirectors,thebiggestquestionwaswhetherthemanagers'initial$75-per-shareofferwasgenerousenough.ThiswasthelargestLBOdeal--actually,oneofthelargestacquisitions--inhistory,forsometime,saidWhartonfinanceprofessorN.BulentGultekin,adding:Thisisreallythebeginninginabigwayoftheleveragedbuyoutindustry,andofprivateequity,intheUnitedStates.ThebattleforRJRNabisco,hesaid,becameoneofthemostcelebrated,ornotorious[privateequitydeals],dependingonwhoseperspectiveyoulookat.AAAAWideWideWideWideRangeRangeRangeRangeofofofofDealsDealsDealsDealsInanutshell,privateequityisnotaverycomplicatedphenomenon,Gultekintoldhisstudents.But,headded,therearemanyvariations.Privateequityencompassesawiderangeofinvestor-financeddeals,oftenmeanttobetemporary,aimedatstrengtheningthesubjectfirmtoimprovereturnsorturnaprofitonasale,orexit.Insomecases,butnotall,thegoalistotaketheacquisitionpublic,orissuesharestobetradedonastockexchange.Inothers,theacquisitiongoesfrompublictoprivate.Privateequityfundsarefinancedbywealthyindividualsandinstitutionalinvestors,suchaspensionfunds,insurancecompaniesanduniversityendowments.Hedgefundsarealsomajorplayers.Rulesgenerallyprohibitinvestorsfrompullingtheirmoneyoutonshortnotice,givingtheprivateequityfirmtimetoseeitsstrategybearfruit.Theindustryhasundergoneextraordinarygrowth,withfundstotalingaround$8billionin1991and$2trilliontoday,Gultekinsaid.Afterafrenziedperiodfrom2006-2008,theindustryhasbeeninaslump,withvolumeinleveragedbuyouts,thebiggestsectorofthebusiness,fallingfromaround$200billioninthesecondquarterof2007to$5billioninthesecondquarterof2009,thenreboundingabitto$17billionin@赵娜Christina：很让人激动的资料，分享下～更多资料请点击：#PE/VC知识分享#thefourthquarter,accordingtoTheWallStreetJournal.Jittersoverthefinancialmarketsandtheeconomyaretoblame,withmanyinvestorsworriedabouttyingmoneyupinprivateequityfundsthatbytheirnaturetakelotsofrisks.Investors'contributionsareoftenmultipliedwithborrowedfunds.Privateequitycoversavarietyofapproaches.Inaventurecapitaldeal,theprivateequityfirmtypicallyfinancesandnurturesayoungcompany,oftenbyacquiringacontrollingshare.Inagrowthcapitalinvestment,theprivateequityfirmmaytakeaminorityrole,contributingcapitalandguidancetohelpthecompanygrow.Mezzaninelendersprovidefundsforfirmsthathavetroublegettingstandardtypesofloans.Firmsfocusingonleveragedbuyo