On my way from Mumbai to Bhopal last saturday was fortunate enough to watch the movie Other People’s Money . As I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.
Let us try to understand Private Equity (PE) :
Private equity generally make investments in the operating companies through a variety of loosely affiliate investment strategies leveraged buyout, venture capital and growth capital.Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.
They have been always in news as people see them as , private equity and job destruction aren’t the source of our employment woes. Rather, it is the clampdown on innovation. Some of the research claims that Private equity ownership resulted in both more rapid job destruction and faster job creation than other forms of ownership.
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way of describing some of those shrewd investors who buy shares in a downturn in the hope or belief that they will bounce back. Great successes can be achieved in this way. However, what do you do when the markets are on an upturn as the global indexes have signaled for close to five years in a row? Even when the studious foresee a continued momentum, there is a natural trepidation that the glass ceiling may suddenly bounce that trajectory.
