Private equity explained
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- Опубліковано 12 січ 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😂😂😂😂😂😂😂😂
My learning style is aligned with your delivery. Really enjoyed this.
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
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
Beautifully explained, the power of art shines forth once again
Sounds like the people who would benefit most would be monopolists who want to get rid of competition without triggering an antitrust action.
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
The most direct and easiest way to understand about PE!
Thank you, Sensei!!
This is really well explained
De Niro teaching us is a blessing.
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
Great job thanks for the info.
Nice Video! Thanks for explaining!
You the best , this has just explained my curiosity on what is this PE .
I couldn’t understand this until I watched this video. Good job👍🏼
thank you so much for your v valuable explanation !! Where were u before !!
That was really easy to understand and assimilate, thank you :)
Absolutely Cool Paddy ...... Thanks a Lot :-)
Nice explanation.
Excellent presentation!
Very good and clear explanation.. Thank youuu..
Thank you! Great information!
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
Brilliant explanation!!!
well done. thank you for this
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
Excellent explanation
Thank you so much for the video. I want to learn more
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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best teacher ever
Thanks my guy.......very well explained
best teacher on yt
Super clear 👍
great vid keep doing these vids!!
Brilliant explanation. !!
Not all income investments are created
equally. I've allocated my capital in a safe and sustainable way but still leave room for excitement for individual stocks, cryptos and new exciting opportunities!
I'm working towards an early retirement, it's
possible but tough, it definitely requires discipline and big sacrifices. Putting in the work in boosting my earning capacity. I'm glad I got into stocks and recently joined the NFT train.
@@rahultoggi4672 I still prefer real estate over
stocks or crypto, Nfts. Perhaps it's because I had
a front row seat watching so much carnage
during the 2000 dotcom bubble and the
2008-2009 financial crisis that has me jaded.
@Joe Robert. I firmly believe everyone striving for financial independence should own both stocks and real estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide. At least with stocks, when the market is plunging, you can sell, albeit at a loss. Lots of people couldn't sell their real estate, couldn't afford to sell in 2007-2011.
@@noelstout3056 Absolutely, i made my first 6 figure at a go during a crash. I retired with a 7 figure portfolio and I'm currently receiving about $500k annual earnings. I didn't achieve that by playing safe. My earnings comes from stocks and profits from the crypto market as well. All this were possible with the guidance of my personal trading broker Frost Hilda, who helped build a portfolio that's has helped cleared my debt. Retirement came early with no regrets.
@@seanroger6954 I'm aware of Frost Hilda, how long
has he been handling all these investments and
how has he enhanced your earnings?
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
Great concept, great video.
Bruh this explanation was great!
Solid video - thank you
What do you do for a living??
fantastic video...thank you very much
very good job of explaining.
The “leaves all of us needing a drink” at the end was funny asf
Nice man, thank you.
Greatly explained
Excellent job 👏
Excellent
I never get tired of the punch line at the end !
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.
who does the analysis to know if that is a good investment? 1st and 2nd year financial analysts or those investors?
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
Very quick and easy explanation thanks!
This was a really good explanation, thank you!
Now here's some scummy details he left out: ua-cam.com/video/VUS8R3HzJY8/v-deo.html
This guy is awesome.
perfect video
thankyou!!
excellent Paddy
It was so nice of you to come up with such an example. Thank You!
Thank you so much
So PE is a risk/reward type deal and how much does one put into it to get started
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 😂😂
Very good!
Thank you
you make it very easy to unedrstand - well done. i'm sure the PE Funds would rather maintain the mysticism around what they do!
there is a role of securitising the accounts receivables to fund the buyout ..
AMAZING VIDEO
Thanks 👍🏻
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.
:)
Great video, well explained
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.
Is this the same with cars, planes and boats and luxury items
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.
Thank you for your very clear explanation of what a private equity fund is, and how the v average person's retirement fund can be indirectly involved and subject to the profits or losses inherent in them.
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.
thanks!
love it man
Very understandable, thanks man
Thanks
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...
If you can explain something complex in simple terms then you truly understand it!! Enjoyed watching your video!! 😎
what happen when they cant flip the company, or they are over leveraged? they just default on debt?
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
But this explanation was flawless.
thanks
What goes up in value so they can flip the house/company for a profit? I get they strip a companies assets down, and kill it, but after a companies stripped down, where’s the value coming thatll make you profit? Is it the land?
love what you do. Great explanation, and we learn complicated concept.
PE isn't limited to LBO. LBO is an option when the PE guys conclude the the target company has a number of assets that they can sell of as or use as collateral to repay the loan. PE are more concerned with restructuring the company and management. brilliant explanation though.
WRONG!
Every private equity deal is an LBO as you will never buy a company with all equity or the returns will be too low and the GP wont get carry
Brilliant
Cool explanation.. You need a stand for your video camera though
Love this! Very straight forward
very good
Amazing
excellent bro :(
Good explanation.thanks
Workers MUST own and control the means of production.
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
cool video!