Leverage is pervasive in today’s private equity markets. Antonella Puca, CFA, CIPM, CPA, explores how private equity funds apply it and how investors should approach it.
What does the private equity secondary market look like these days? Antonella Puca, CFA, CIPM, interviews Brett Hickey of Star Mountain Capital for his take.
Private investment fund internal rate of return (IRR) and volatility calculations can sometimes be quite misleading. So what can be done about it? Preston McSwain has some recommendations.
Private equity’s demise has been overreported, according to Claudia Zeisberger, founder of INSEAD’s Global Private Equity Initiative. Critics of private equity are not hard to find, and if you listen to them long enough, you’ll hear all kinds of stories that make your stomach turn. No doubt, there have been bad actors abusing the label of “private equity investment.” But private equity is a governance structure, not a business model or industry.
The Carlyle Group's David M. Rubenstein discussed a broad range of topics at the 69th CFA Institute Annual Conference, from the mating habits of panda bears, to the historical importance of the Magna Carta, to Paul Volcker’s monetary policies in the early 1980s, to Japanese demographics, and beyond.
A new firm offers up a unique valuation methodology for private equity. In this interview with CFA Institute, Sheridan Porter, cofounder of FEV Analytics, reveals some of the secrets to how they overcome traditional problems in order to value private companies.
Morten Sorensen and Ravi Jagannathan took on the question of how to effectively evaluate the performance of private equity (PE) funds, and they offered a rigorous theoretical justification for using the public market equivalent (PME).
Central bankers in the US have long fixated on the equilibrium real interest rate (ERIR) as their lodestar, an obsession that GMO’s James Montier, in The Idolatry of Interest Rates, bemoans as “a massive exercise in navel gazing.” According to Montier, the broad acceptance of the theoretically dubious ERIR — the real interest rate consistent with full employment of labor and capital resources—is not an example of the wisdom of crowds, but rather “groupthink extraordinaire.” Further, investors’ collective preoccupation with interest rates as an economic “cure-all” and their “deification of central bankers” are equally misguided, says Montier.
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