Private Equity’s New Phase

A silent, seismic shift has dramatically altered corporate ownership and business governance globally. From 1996 to 2015, the number of publicly traded companies in the United States alone dropped nearly 50%. Some of this ownership shift includes failure of firms or acquisition of firms into larger conglomerates (either domestic or foreign), but much of the […]

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A Deficit of Leadership

Our age is not short of great ideas — of ways new technology can be applied to fix global industries and increase prosperity. But we are starting to notice a serious deficit in Silicon Valley: a shortage of great leaders. A common refrain from startup entrepreneurs is that they have no problem attracting high-energy contributors, but are […]

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Companies Can’t be Great Unless They’ve Almost Failed

Harvard Business Review by Bill Taylor MARCH 21, 2016 The Wall Street Journal recently published a fascinating column on the best-performing stocks of the last 30 years. One intriguing feature of these enormous success stories is that so many of them are little-known companies in ordinary, sometimes downright boring industries: railroads, health insurance, back-office automation. […]

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How Angel Investors Value Companies

by ALEJANDRO CREMADES We currently are experiencing an industry with over $24B in transactions according to several reports where over 50,000 startups receive financing at an early stage. Additionally, the number of active angel investors has been increasing and currently surpassing 316,000 active investors according to the Center for Venture Research. For the most part […]

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How private-equity owners lean into turnarounds

Article|McKinsey Quarterly January 2016 | byHyder Kazimi and Tao Tan PE-backed companies outperform their public counterparts during periods of distress because the owners play a more active role in management. It’s well known that the boards of the best private-equity (PE) firms create value by using financial leverage to increase their returns on equity, by […]

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A Counterintuitive Approach to Liquidity

January 11,2016 Michael Kitces Liquidity may be an appealing characteristic for an investment, but a growing base of research is finding that illiquidity may be even more desirable. Ironically, demand for illiquid investments is so low, that they appear to carry persistent excess return premiums. This view has been popularized in recent years by people […]

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Everything You Wanted to Know About VC Liquidation Preference But Were Afraid to Ask

Venture capital investors almost always insist on investing through a “preferred” equity instrument, typically referred to as preferred stock. Preferred stock is better than common stock, because holders of preferred stock receive preferential treatment in the event of a liquidation of the business. For these purposes, a liquidation event can be either a bankruptcy, a […]

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