Sep 9, 2021
Summary:
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.
Highlights:
-‘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