Tag Archive: Venture capital


What is Private Equity?

Cover of "Other People's Money"

Recalling 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 813530as 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. Continue reading

Sharing from the 25IQ found interesteing

1. ”Optionality is the property of asymmetric upside (preferably unlimited) with correspondingly limited downside (preferably tiny).” SYVenture capital, when practiced properly by a top tier firm, is a classic example of a business that benefits from optionality. All you can lose financially in venture capital is what you invest and your upside can be more than 1000X of what you invested. Another example of optionality is cash held by a disciplined patient value investor with the temperament to not buy until Mr. Market is fearful. As just one example, Warren Buffett did exactly this during the recent financial panic and earned $10 Billion by putting his cash to work. Seth Klarman, Howard Marks and other value investors use dry powder in the form of cash to harvest optionality since Mr. Market is bi-polar.

2. ”‘Long volatility’ in trader parlance, has positive optionality.” As an example, the optionality of cash allows the holder to buy assets from people who were “short volatility” when a crisis hits. The wise value investor sits and waits patiently for Mr. Market to deliver a fearful market and when the intrinsic value of a company’s shares presents a “margin of safety” buys in quantity. Continue reading

What is Private Equity?

Recalling 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 813530as 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. Continue reading

2012 The Year of Euro & Past themes

It might be interesting to see the past , every year has been personified by some of the personalities left their impression on financial markets.

Its a year by year collection pick out with a different fad that really captured the attention in that year and dollars of the investors Class.

Year

Themes

Personified by

1996

Initial public offerings, Microbrews, Irrational Exuberance

Alan Greenspan, Federal Reserve Chairman

Continue reading

There are several types on Investors in the market makinginvestments in one or more categories of assets with the objective of

Hedge Fund Managers - Lynching Party Needed

making a profit.  To name a few Individual investors, Angel investors, Sweat equity investor, Venture capitalist funds, Investment Trusts, Mutual funds, Hedge funds and Sovereign wealth funds.. here are some of the views how investment defined by them.

Warren buffet: A good business that can be purchased for less than the discounted value of its future earnings.

George Soros: An investment that can be purchased (or sold) prior to a reflexive shift in market psychology/fundamentals that will change Continue reading

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