Dot.com bubble again?

While stock markets gyrate it seems investors are also resorting to the kind of investment screening applied near the end of the dot.com bubble to justify their bets.  NYT reports that Silicon Valley start-ups are awash in dollars, again as investors apply convenient metrics, like number of users, to justify paying billion dollar prices for …
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Capital gains tax break for VC disappearing in UK

UK Chancellor Alistair Darling unveiled substantial increases to the tax bills of private equity bosses. The Treasury has carried out a six-month review of the tax treatment of private equity groups in response to growing criticism, particularly from trade unions, that rich owners of such companies pay virtually no tax in Britain. Nicholas Ferguson of …
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September VC deals and data

According to the Emerging Markets Private Equity Association, 107 private equity funds focused on investing in the emerging markets of Asia, Europe, Latin America, the Middle East and Africa raised US$21.5 billion in capital commitments in the first half of 2007, compared to US$33.2 billion raised by 162 funds in all of 2006. Here’s their …
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Should you invest in the company or its management … ?

A 2004 study, recently updated, adds to the debate about whether management or the company is the important focus of investment screening.  The study, written by Steve Kaplan of the University of Chicago, Berk Sensoy of USC and Per Stromberg of SIFR, found that over 90% of successful VC-backed companies have the same business model …
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More money than deals in clean tech

As we expected, there appear to be more money than deals in clean-tech. New Energy Finance reports: 2006 was another record year for Venture Capital and Private Equity investment in the clean energy sector, with $18.1 billion invested in companies and projects. This represented a 67% increase on 2005 ($10.8 billion), and beat New Energy …
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Fees win over carry for buyout managers …

A new study by two professors at Penn’s Wharton School lifts the lid on a “secret” of private equity managers. The findings of Wharton professors Andrew Metrick and Ayako Yasuda show that, “on average, leveraged-buyout funds can expect to collect $10.35 in management fees for every $100 they manage, whereas about half that, $5.41 for …
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Carlyle’s seedy connections …

Carlyle, the large successful private equity firm, has always been a cause for concern because its claim to excellence at its inception a decade ago was the raft of politicians on its board. The New York Post revealed recently that it paid $12.3 million in fees to a company tied to former state Comptroller Alan …
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Disclosure and transparency in private equity

Here is a link to the consultation report by Sir David Walker on the UK private equity industry: Disclosure and Transparency in Private Equity.  It offers a profile of the current industry and recommends guidelines for improving transparency.  It does not focus on tax treatment, though there are implications for this. Ethical Corp magazine reviews …
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