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Kerry Lutz's--Financial Survival Network

Sep 9, 2021

What does the term ‘private equity’ really mean, and what is its role in businesses today? On today’s podcast, we have private equity expert and bestselling author Adam Coffey with us to highlight the significance of private equity. As publicly traded companies are on the decline and exit strategies are taken into consideration, this term becomes especially relevant and crucial across a number of industries.

-‘kicked around’ always refers to private equity—Adam Coffey is a bestselling author and private equity expert and is going to give us information on what private equity is about
-What does private equity really mean? He uses the analogy of a mutual fund
-Private equity works similarly, but the minimum investment size is $5 million, unlike a mutual fund. It does exactly what it says and invests in private companies. The biggest area is buy-out funds
-Sell funds to return capital to the investors
-Private equity failures over the last ten years has to do with strong competition and return thresholds being monitored. Like any industry, there are winners and losers
-Good/bad firms can come in all sizes
-Distressed asset funds seek out companies that are in trouble and attempt to help them, but other failures are consumer driven (i.e. shopping malls and bookstores are going out due to consumer habits)
-There is far more equity invested in companies today than there is debt
-Limitations have come into place by the market and people investing
-People purchase most things online now, and there is a heavy evolution that is constantly progressing
-It’s hard to find an industry that private equity doesn’t play a part in
-There is a declining number of publicly traded companies, and they will probably diminish
-Exit strategy now involves selling off to private equity

Useful Links:
Financial Survival Network
Adam E. Coffey's Website/
Adam E. Coffey Linkedin