By Maurizio Parrella, Alessio Corcelli Initially posted on the BSPEC blog Consumer Discretionary Sector The recovery from the global financial crisis shed light on an evergreen, yet recently white hot, equity group: consumer discretionary. The consumer discretionary industry comprises all companies participating in the value chain to produce a good or provide a

By Atul Vyas and Alessandro Carleo Initially posted on the BSPEC blog Increasing the value of portfolio companies is crucial for the success of a private equity firm. As Gompers, Kaplan, and Mukharlyamov (2015) have found, PE investors “target returns that exceed CAPM-based returns”. The bulk of excess return, or alpha, is gained through

By Dong Chen and Valeria Ryabchina Initially posted on the BSPEC blog Oh the places fastidious VC firms won’t go! The profile of a strong portfolio candidate is subject to more than a few criteria that not all companies can fulfill. Despite high dry powder levels, many PE and VC firms remain

By Francesco Maulini Initially posted on the BSPEC blog Many readers have passed through the turnstiles at their stadium if only at least once. In many cities, it’s a rite of passage for anyone seeking to call him or herself “a local” and many engage in this ritual week in and week

By Massimo Tiozzo Netti, Francesco Carraretto Initially posted on the BSPEC blog Introduction Back in the ’80s, some ambitious entrepreneurs designed a miniature model of the typical private equity fund. Forget about pools of cream-of-the-crop professionals: search funds are a businessperson’s stepping stones to achieving their pipe dream position as a CEO. Although

By Eric Peghini Initially posted on the BSPEC blog “Everyone has access to information. We just know how to analyze it better.” This is the mantra of Billions protagonist Bobby Axelrod, a fictional hedge fund manager who’s ethically compromised fund breeds alpha like a wolf pack. However, putting aside any insider trading and market manipulation, is