Outline the Arguments for and against Private Equity Investment

Outline the Arguments for and against Private Equity Investment Essay example
Undergraduate
Essay
Finance & Accounting
Pages 6 (1506 words)
Download 0
Topic: Outline the Arguments for and Against Private Equity Investment Name Professor Institution Course Date Private Equity Private equity is a kind of investment whereby investors make direct investments into private companies or completely buyouts of publicly listed companies resulting in their delisting from the stock exchange…

Introduction

120). In most cases, private equity is driven by the opportunity to earn high returns from a company. Private equity funds mainly come from the private market but private equity firms can invest the funds in both the public and private companies. It is important to note that when the investment is made in a public company, the company becomes private because private investors take control of the company they have invested their money. The market for private equity has evolved significantly in the past one or two decades. This is driven by the fact that a majority of investors have identified good opportunities that reward very high returns in the private equity market. Research studies reckon that the number of expensive buyouts has been increasing every year with investors increasing the size of their investments in the private equity market. The growth of the private equity market has led to a number of concerns regarding its sustainability in the long run. However, one debate that has continued to dominate the financial market is whether private equity is a desirable investment or not. This paper sets to discuss the pros and cons associated with private equity in terms of improving company performance and benefiting the economy. ...
Download paper
Not exactly what you need?

Related papers

Company's interest regarding private equity buyouts
In just one generation the private equity industry has grew to become a dynamo for growth, innovation and enterprise (Kolade. W, 2008). Britain is a world leader in this sector with one of the largest private equity markets globally, second only to the US. There are over 450 active UK firms, which provide several billion pounds each year to unquoted companies. Despite private equity now being a…
Leveraged Buyouts and Private Equity- A summary and current events
There is a difference with venture capital firms as they do not obtain the major proportion of control by investing in young and dynamic firms. Thesis statement Leveraged Buyouts and Private Equity- A summary and current events Emergence Leveraged buyout first came into the picture as an important phenomenon in 1980s. It was predicted that these types of organizations would form the major portion…
Hansson Private Label , Inc (HPL) Evaluating an Investment in Expansion
This would require an investment above $50,000 by HPL which is unprecedented in its history. Hanson’s executives have made cash flow and WACC projections using their traditional estimates as well as some external consulting with banks etc. However, Trucker Hanson is not sure of their methodologies and needs to review it. The initial part of the report performs a qualitative analysis of the…
Conclusion on Private Equity
After the buyouts, the private equity firms are able to manage the companies in to making profits, after which they are sold to other investors. The private equity firms do a financial refurbishment of the companies facing a crisis. The Private equity firms also rebuilt the financial structures so that the companies get the ability of becoming productive financially. The major aim of the private…
Amazon Acquisition and Equity Investment
2- SET OF COMPANIES ACQUIRED BY AMAZON IN 2011 In 2011, set of companies were acquired with price of US $771 million by Amazon (Amazon, 2011). None of the companies are defined specifically but all are aimed at market development for Amazon for increasing customer base as well as sales channel increase in portfolio. Two of the companies included Marshall Cavendish US Children’s Books Titles and…
private equity investment: future scope in European region
The study focuses on the development of the firms under impact of the growing bio-technology industry in Europe. Table of Contents Private Equity Investment: Future Scope in European Region 4 Introduction 4 Research Hypothesis 5 Scope of Research 5 Research Objective 5 Significance of Study 6 Literature Review 6 Research methodology 8 Rationale behind This Research 9 Works Cited 10 Name of student…
Private Equity Funds
These types of funds have huge difference from the other investment funds from the perspective of the business strategy used for seeking control over the businesses where they have invested (Cumming, 2009). These types of funds are also different in their structure because they are generally close-ended and have finite life time. The private equity funds have fixed number of shares. Private Equity…