Private equity explained
ฝัง
- เผยแพร่เมื่อ 12 ม.ค. 2012
- Private equity funds are groups of investors that flip companies for a profit. It's the technique they use that makes them special, as Paddy Hirsch explains. #MarketplaceAPM #PrivateEquity #Investing
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Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners.
Everyone loses - the business, the employees, the local consumers, the tax payers.... except for the general partners
The people you’re claiming don’t benefit wouldn’t have benefited with or without the private equity buyout. The business was failing before private equity came in, they just more efficiently manage the end of the companies life. Most likely allowing most companies to work there longer than they would have been able to do before.
@@tahirisaid2693😂😂😂😂😂😂😂😂
Thats litteraly the point of any and every buisinness under capitalism tho
@@tahirisaid2693bullshit.
My learning style is aligned with your delivery. Really enjoyed this.
Sounds like the people who would benefit most would be monopolists who want to get rid of competition without triggering an antitrust action.
Been seeing those tik toks about people doing this for a living..... let me try and learn something real quick
Yoo fr 😭‼️
lol me 2
the person that has a Lambo by selling drugs is a king lol
LOLL same
Lmaoooo
Saw a lot of luxury car owners say they do this.
Lol tiktok?.Me tooo hahaha
Same
Sameeee 😂😂
LoooL 😂😂😂 i camr from tik tok
Same
The most direct and easiest way to understand about PE!
Beautifully explained, the power of art shines forth once again
I kno can't be the only one here from TikTok
Yeaaaa you got me there
Yep saw a few people with nice cars saying they were into private equity. Came here to learn what is was 📝
Nah bro
Lol
It’s parasitic and harmful
De Niro teaching us is a blessing.
This is really well explained
Thank you, Sensei!!
Excellent presentation!
Great job thanks for the info.
Excellent explanation
I am French and was looking for a deep explanation of private equity in French language (as I don't really master English). Watched your video and found out that I understood better your explanation in English than 100 French websites I read. THANK YOU SO MUCH !!
baby girl.. your English is sweet. I dont speak French.. but I DO kiss that way. ))
If you are french, I am Swedish
@@dissmr 🤌
bonjour
Absolutely Cool Paddy ...... Thanks a Lot :-)
Nice explanation.
Nice Video! Thanks for explaining!
That was really easy to understand and assimilate, thank you :)
Thank you! Great information!
Very good and clear explanation.. Thank youuu..
You the best , this has just explained my curiosity on what is this PE .
Great concept, great video.
Brilliant explanation!!!
Super clear 👍
I couldn’t understand this until I watched this video. Good job👍🏼
Thanks my guy.......very well explained
Excellent
thank you so much for your v valuable explanation !! Where were u before !!
Excellent job 👏
Brilliant explanation. !!
best teacher ever
fantastic video...thank you very much
best teacher on yt
I never get tired of the punch line at the end !
very good job of explaining.
well done. thank you for this
Greatly explained
Thank you so much for the video. I want to learn more
Solid video - thank you
While many private equity fund managers are ethical, Steve Feinberg's private equity fund is what caused school teacher retirement money to bankroll U.S. black rifle manufacturers. It was his company that made the Newtown gun.
great vid keep doing these vids!!
excellent Paddy
How am I just finding this channel? You are brilliant.
yes, this seems to be a good channel. I found it now too. also, check out my channel as well :)
I loved these videos. I was kinda confused when the first clip ended. Then I loved it after the second video ended with a drink.
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Thank for expand , working in K. K. R. Capital before still not really sure they spend lot of $€£ , however silver lake and T.P.G is the most competitive P.E. firm
Bruh this explanation was great!
No doubts , A good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made.
Nice one Vic.Any investment tip?. I would love to know how you made it this far
@@Alexedmartin. Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.
@@vicahmed221. That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@Alexedmartin. She is easy to find , make a quick research of her on the internet with her name Regina Louise Collaro and leave her a message .She works with anyone independent of their location.
@@vicahmed221 You are right, I am one of many who has benefited from investing with Regina Louise Collaro. 2020 is an unforgettable year in my life, back then I lost my job due to covid and had no reason to live. Regina made a good life possible for me through passive income and I owe her my life. To be honest, I feel like she is an angel of who was sent to help those who are suffering financially
The “leaves all of us needing a drink” at the end was funny asf
Nice man, thank you.
AMAZING VIDEO
TIK TOK BROUGHT ME HERE! Man I've been wasting my f*cking life studying some other bullsh*t. I wish I knew this 10 years ago.
Good job.
What do you do for a living??
Saw video of guy asking people who owned sports what they do for a living and this was one of their answers. So here i am on my way to owning a sports car. lol
Very good!
perfect video
Thanks!
The bank don't just lend the 9 million away like that. The idea behind LBO is to use the cash generated by the target company to to repay the debt taken. The aquirer typically uses the assets of the target company as collateral.
That's true of any bank loan. It didn't need to be stated
He literally says this in the first 2 minutes, bozo
Yo moma is a bozo for having you @@milkmessiah5192
Thank you so much
PE fund is not a synonyme for LBO fund. What you're talking about is a Buyout fund. PE is an umbrella term that includes VC, FoF, hedge funds etc.
A hedge fund is not a private equity. You are completely wrong. VC is PE. Hedge funds, PE, etc are considered alternative assets but hedge fund does not belong under private equity
@@toomanyfrogs6702 yup, but even then, some LPs like to separate out VC from their PE book
cool video!
Thank you
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Thanks 👍🏻
very good
So PE is a risk/reward type deal and how much does one put into it to get started
Very quick and easy explanation thanks!
thankyou!!
thanks!
who does the analysis to know if that is a good investment? 1st and 2nd year financial analysts or those investors?
you make it very easy to unedrstand - well done. i'm sure the PE Funds would rather maintain the mysticism around what they do!
Great video, well explained
love it man
PE can also initiate an IPO on the share market, purchase heaps of shares thereby driving up the price of the shares. From there they entice others to buy the shares and when the company reaches over priced levels, the PE investors sell the shares to those who are still buying, make huge profits and walk away from the investment. Those who are left, lose their investment as the value of the company collaspes. This is a ruthless investment scheme that causes huge job losses and economic disruption. This is what happened to Dick Smith.
This is NOT what PE funds do. Fuck, you really are stupid.
The majority of PE deals are not public companies.
That’s really fucking illegal 😂😂
Brilliant
But this explanation was flawless.
Workers MUST own and control the means of production.
there is a role of securitising the accounts receivables to fund the buyout ..
Thanks
Is this the same with cars, planes and boats and luxury items
Amazing
Asset stripping, privatising gains and socialising losses
Great words thanks sir.
I have a question .
Do these bunch of friends who bring £1million need to form a company or something else plz say few words once. Again I really appreciate your help with this.
:)
thanks
This was a really good explanation, thank you!
Now here's some scummy details he left out: th-cam.com/video/VUS8R3HzJY8/w-d-xo.html
Cool explanation.. You need a stand for your video camera though
Where do u get the money from to Renovate the house
Very understandable, thanks man
excellent bro :(
So basically you need a hell amount of investment in order to acquire a running business which is somehow not running great by any means. We need to fix it up and manage it for 5-10 years before flipping it right? But can you tell me will the investors be getting monthly salary or income or interest from the entire investment they did to acquire the business.
how do private equity funds underwrite and calculate every investment? meaning, what exactly are the sheets or instruments they use to calculate IRR, Equity Multiples, Cash flows, and overall underwrite and project for every fund?
I'm not a private equity expert, (although I'm in finance) but I assume private equity firms looks at the main financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) in order to evaluate the health and growth prospects of a company. They probably vary as private equity firms are not working with public companies, but I assume that's what they look at.
That was very good -- EXCEPT;
What has BEEN happening with mutual funds, pensions and MORE -SO CALLED "professional" people who WORK for the investment side of YOUR pension is the FOLLOWING;
Since this IS PRIVATE equity investing pensions and others -- HAVE -- invested in companies that give VERY high DIVIDENDS in return for the pensions money-- now pensions get a "so called" GUARANTEED dividend RETURN to HELP make it easier for pensions to make investment goal RETURNS.
The BIG PROBLEM is; The HIGH dividend is GIVEN for a BAD REASON--- the company is a SERIOUS "JUNK" status debt company -- MEANING -- THE MAJORITY of BANKS and OTHER lending institutions --- WON'T RISK their MONEY on lending this BAD company --- ANY MONEY--- NONE!
The Company-- KNOWS they have a "junk" status rating and a BIG, BIG, PROBLEM raising CREDIT lines and LOANS to STAY in BUSINESS!
So--- they CAN'T get MONEY from NORMAL "LENDING institutions-- thus they go to ---- PRIVATE LENDERS-- PROMISE a VERY HIGH interest rate on the money THEY BORROW!
The PENSION( the lender) DOES DO-- the due diligence -- but KNOWS the RISK of DEFAULT on the money -they LEND( YOUR ---- MONEY!!!) is VERY HIGH! Pension lenders and others,
DECIDE--- if they lend and the default happens -- they have ownership of the DEFUNCT company and they just SELL the pieces( as described in the video).
The BIG problem is the LACK of being ABLE to KNOW with ANY certainty--- the LENDER ( pensions and other lenders) --- will they GET ALL their money back on the SALE of the pieces!
The BIGGER sharks, Goldman and JP Morgans-- just sit-- REFUSE to make ANY offer and wait and wait-- until NOW -- the lender CAVES in as they NEED to get a CERTAIN amount BACK to keep from
just losing -- BIG MONEY!
The Big sharks wait until the deal IS ON THEIR TERMS!
The PENSIONS and others who ALL TOOK risk for the BIG dividend--- now SELL -- for PENNIES on EVERY dollar they gave AS PRIVATE Equity Lenders!
To make this WORSE-- there is NO recourse for pension holders or other mutual fund holders AND ANNUITY holders as the FIDUCIARY responsibility is NOT applicable and they CHOSE the risk! JUST another reason to REMEMBER--- this is YOUR--- PRIVATE DEAL -- NO insurance, NO SEC -- to file charges! ALL you have is the PROPERTY or parts of the business( described in the video).
The POSSIBLE BUYERS of YOUR --- PRIVATE DEAL --- ALL --- KNOW THIS(the Goldmans a nd JP Morgans)!!!
AFTER 2008 crash --- there are A LOT of companies -- just TREADING WATER and DON'T QUALIFY for ANY bank loans. This has become a BIG business because of this!
The TERM --- "JUNK BOND" -- is NOT applied -- for NO REASON!
The -- EXTREME HIGH --- Dividend PAYERS --- "TOO GOOD TO BE TRUE" statement APPLIES--- the EXTREME high DIVIDEND is BAIT for investors!
Is a leveraged buyout essentially a corporate mortgage? Thanks
That's a very good way of looking at it. It's basically how people buy a home. Put down 10-20%. You get the rest through a loan from the bank and then you are responsible for paying the interest and principal. If the house or corporation (in the example of an LBO) gets sold for a much higher price, they pay off that loan completely and what's leftover are the profits. I have had an interest in venture capital and private equity for some time and this video was a great explanation of what a leveraged buyout is.
Came here from tiktok
Good explanation.thanks
Thanks for this amazing information !! If you don't find a means of multiplying money, you will wake up one day to realize that the money you thought you had, has finished. Investment is key, I pray that anyone who reads this will be successful in life
"Sahand119" said this video was an excellent explanation of what private equity is. Well, it is a good explanation of only one sector (leveraged buyouts) of private equity. So it is a very limited and negative-even cynical-explanation. Private equity is a core powerhouse of the U.S. economy and we would not have companies like Apple and Google and thousands more if it were not for private equity companies that risked their money and gambled on someone's idea. This is a very misleading video.
You missed the Reagan/Romney PE corporate where they barrow from the pension fund to pay the investor 38% interest and often the local bank till they're depleted the company to near ruin...
Perfect explanation except the Part of private Equity firms taking a loss