For an asset class largely held for patient, long-term returns, private equity is turning out to be as volatile on a monthly basis as the daily swings in the public stock markets. A year ago, the difference between closing an exit deal and failing to close a deal was a matter of days. By March, […]
Many publicly traded public equity companies are trading far below their opening price when they went through an initial public offering in the heady days of 2007. Perhaps that’s just as well, suggests one private equity executive. While banks certainly have a share of the blame in inflating asset bubbles, they’re not the only ones, […]
Canadian equities have proven no place to hide during the financial storm, and that applies to firms operating in private markets too: venture capital, mezzanine financing and leveraged buyouts. And that storm whips up winds in all directions. Fundraising has dwindled as traditional private equity investors find themselves overextended. The general partnerships that invest the […]
Despite the pall that hangs over private equity, there’s still life in the marketplace as some transactions get done. They target growing firms with low levels of debt. And they’re willing in invest in a tough environment. Take the example of Consolidated Fastrate, a 43-year-old logistics and trucking firm. It was recently acquired by Fenway […]
There seem to be cycles in private company investing. Those with long memories will remember Michael Milken and junk bonds. In recent memory, there were the venture firms of the Silicon Valley that went bust at the beginning of the decade, or more recently still, buyouts whose coda was supplied by the failure of the […]
Private equity is an asset class that can provoke strong reaction from current and potential investors. Those who favour it believe that the information advantage it allows, the ability to grow/change a business without the quarterly scrutiny being publicly traded requires, and the multiple financing structures it employs all translate into superior returns, especially for […]
Investing in private equity may help stabilize a portfolio during difficult times. September and October 2008 marked the most significant turmoil in the public markets in recent memory, as Wall Street melted down and a historic restructuring of the U.S. capital markets unfolded in a matter of days. In Canada, falling commodity prices and a […]
The deal to take BCE private by a consortium led by the Ontario Teachers’ Pension Plan may not close before the end of the quarter after the Quebec Court of Appeal ruled on Wednesday that the agreement was not fair to bondholders. The news sent BCE shares down as much as 14% on Thursday. The […]