Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.
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Post-GFC (Global Financial Crisis) analyses suggest that the Private Equity (PE) sector missed the best buying opportunity due to overly cautious decisions of GPs and LPs. For the PE model, the GFC was a first real test of their reactive strategies and the questions that arose were whether the firms will succeed at refinancing theirContinue reading “Will Private Equity Seize the Upside in a Downturn?”
In 2007, at the peak of the real estate bubble, Blackstone Group invested $6.5bn equity in Hilton Worldwide. Soon after the transaction, the economy plummeted, and it seemed as the group could not have chosen worse time, especially when Lehman Brothers and Bear Stearns – Blackstone’s partners – fell apart. The story took a significantContinue reading “Leveraged Buy-Outs: Why do some of them fail?”
I. ESG in the PE industry In 2004, the then-UN general secretary Kofi Annan wrote a letter to 50 CEOs in the financial industry, urging them to further integrate sustainability into capital markets. This was the beginning of the PRI (Principles for Responsible Investment). Today, over 2,000 funds have signed the United Nations-supported PRI, upContinue reading “Green or Green – Growing ESG Importance in the Private Equity Industry”
The past five years were fuelled with success for the private equity industry. During these years, more money has been raised, invested and distributed back to investors than ever before in the industry’s history. Let us give some figures: between 2000 and 2019 the number of Private Equity-backed companies in the US rose from lessContinue reading “The Rise and Rise of Private Equity”
Alternative investments will hit record $14 trillion AUM in 2023. What about PE? The popularity of the alternative investments space does not come as a novelty in a period in which investors increasingly seek to shy away from the less attractive returns of traditional asset classes. The news is however, that forecasts see the industryContinue reading “Alternative investments will hit record $14 trillion AUM in 2023. What about PE?”
On 30.01.2018, Blackstone announced to buy a majority stake in the data business of Thomson Reuters, the world’s second largest financial information provider. It’s the private equity group’s biggest purchase since the financial crisis, pitting the firepower and network of Stephen Schwarzman, who oversees $387bn in Blackstone funds, against fellow billionaire and former New YorkContinue reading “The return of megadeals: Blackstone buys Thomson Reuters’ data unit for $17bn”
Private Equity – What is it? Private equity (PE) has gained a great amount of influence in today’s financial marketplace, but only few people actually understand the ins and outs of the industry. This quick article (less than “360” seconds long!) breaks down the topic, discussing in brief (i) the different types of PE strategies;Continue reading “Private Equity – The best asset-class of the last 25 years”
The ESCP Finance Society is the oldest and largest student-run Association active in the finance field of ESCP Business School.
The mission of the ESCP Finance Society is to help ESCP students to break into the Finance Industry, organising dedicated networking events and providing useful materials to support the application and interview process.
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- Does ESG Shine In The Dark?Mixed signals have been given throughout the COVID19 crisis; Larry Fink insists on the fact that ESG is a top priority yet 52% of investors in the USA deem that it is unnecessary to fully pursue ESG related objectives during such unprecedented and arduous times. All of this leads us to question where ESG standsContinue reading “Does ESG Shine In The Dark?”