Capital Structure of an LBO

First published on the BSPE blog By Dorina Barna and Boris Mihaylov LBO stands for Leveraged Buyout and refers to the purchase of a company while using a significant amount of debt to finance the transaction. Usually, the assets of the company being acquired and sometimes those of the acquiring company are

Internet Platforms and Network Effects

We talked quite a bit about the advantages and disadvantages of platforms over traditional pipelines, but there is one aspect that was glaringly absent. Network effect is a critical element of any platform, not only does it allow platforms to grow rapidly, but also allows it to defend itself against

Overview of the Leveraged Finance business

First published on the BSPE blog By Konstantin Barakos Introduction What is Leveraged Finance? It’s actually fairly straightforward – the answer is right there in the name! Leveraged finance describes a corporate acquisition financed through leverage. End of story; roll credits. Ok, since I brought up the term credits, I should mention that Leveraged Finance participants

How Platforms Disrupt Different Industries

Through a cursory glance at the different internet platform companies, we see that although platforms permeate all industries, some industries are more disrupted than others. Certainly, platforms are superior to pipelines in some aspects, but the advantage does not persist equally in all industries. What makes certain industries more vulnerable

Impact Investing and Decarbonisation

Writer: Hauk Hofseth Ever since Thomas Newcomen invented the first coal-powered steam engine in 1791, combustion of coal, oil and other fossil-based fuels has contributed to climate change. About 75% of total greenhouse CO2 emissions is a result of burning fossil fuels,[1] which in turn makes up about 80% of global

Geopolitics After COVID-19 and Market Reaction

When Does the COVID Recovery Start The world will not be the same after the coronavirus and will adjust to a new normal. Now when the dust settles is another question. Is reopening up now a good idea when new cases are still springing up and people are dying at a

What is Hedge Fund Hiring Like?

Are you an investment banker? Do you want to go to the buy side? Bankers usually look to exit to private equity. However, the smartest bankers usually go to hedge funds. Private equity is supposed to pay more and have more interesting work. In reality, modeling for IRR and operations is not much

Negative WTI Futures and Philosophical Musings

We haven't been writing a lot lately because work from home is hard. Somewhat amusing, I was supposed to meet a friend somewhere in December and we decided on Wuhan. She later decided that she did not want to meet up and went to California. My AMEX concierge then cancelled my

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