Pension Funds, Intermediaries and Private Equity Private Equity by Bocconi Students PE Club - March 25, 20190 By Stefan Larsen Initially posted on the BSPEC blog In the late 1970s and early 1980s there was a dramatic increase in private equity activity in the US when pension funds like CalPERS began to invest heavily in them following the clarification of the “prudent man” rule by the Department of Labor,
Understanding a Merger and Understanding a Merger Model Corporate Finance Financial Modelling Mergers & Acquisitions by Matt - March 24, 2019March 24, 20190 A Lesson in Mergers & Acquisitions Theory Step back for a second and forget all of the accretion/dilution, tax implications and purchase price allocation jargon that goes into mergers and acquisitions and read this to understand the basics of mergers and acquisitions. A firm buys another firm. There are no synergies and
Tips for New Investment Banking Analysts Summer Analyst by Matt - March 23, 2019March 23, 20190 As a wily, 8 year finance vet, wanted to share some thoughts. Always take the opportunity to go to a client meeting or join a client call right away MDs actually do not care about whether analysts go or not, but it is an incredible learning experience for junior staff. When the
eDreams: Take Off and Crash of Private Equity Case Study by Bocconi Students PE Club - March 22, 2019March 25, 20190 By Carla Costa and Camilla Cameroni Initially posted on the BSPEC blog Introduction Founded in February 1999 by Javier Pérez-Tenessa de Block and James Hare, two young marketing professionals, the online travel agency eDreams took up rapidly. The idea was not original, but they were positioning their venture differently from the others, offering
Fee Structures in Private Equity Private Equity by Bocconi Students PE Club - March 19, 2019March 20, 20190 By Christopher Khoury and Eric Peghini Initially posted on the BSPEC blog Investors allocate capital with Private Equity Firms in order generate a high rate of return on their invested capital. However, when there are several investors and a separate manager, how much of the profits from investments are investors entitled to?
CLOs at the Center of the New PE Industry Leveraged Finance Private Equity by Bocconi Students PE Club - March 18, 2019March 24, 20190 By Davide Martellozzo, Simone Bertani and Leonardo Astegiano Initially posted on the BSPEC blog Introduction to CLOs Collateralized Loan Obligations (henceforth, CLOs) have become increasingly popular in the post-crisis era because of some intrinsic features such as strong credit performance and appealing risk-return profile, making them an attractive asset class to the eye of
Luxury Goods Industry Primer Consumer & Retail by Karl - March 18, 2019March 18, 20190 The luxury goods industry is a core industry within Consumer & Retail. Depending on its definition, specifically whether or not it includes luxury cars and hospitality, the market size of the luxury goods industry ranges from $200 billion to $1.2 trillion. We will focus on the core luxury goods industry
Spreading Investment Banking Comps: Preferred, Minority Interest and Adjusting for Subsequent Events Trading Comparables by Matt - March 17, 2019March 17, 20190 In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +
Spreading Investment Banking Comps: Net Debt Corporate Finance Fixed Income Trading Comparables by Matt - March 17, 2019March 17, 20190 Getting to the equity market value of a company was discussed in a prior post. Recall that the basic enterprise value formula is: EV = Equity + Net Debt [Debt - Cash] The extended formula can be: EV = Equity + Debt - Cash & Marketable Securities + Preferred Shares + Minority Interest +
Spreading Investment Banking Comps: Calculating Fully Diluted Market Capitalization Corporate Finance Trading Comparables by Matt - March 17, 2019March 17, 20190 We will explain the most important part of spreading comps for investment bankers in this post. The brunt of conducting comparable companies analysis is to calculate the appropriate enterprise value, which will have certain components which are "live" and certain components that are the latest historical financial statement data. So to