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Sunday, April 18, 2010

Private Equity Returning to Financial Services Industry -- Seeking Alpha

Private Equity Returning to Financial Services Industry -- Seeking Alpha
"The Financial Services industry has been getting increased attention from the private equity industry as the credit crisis eases and the financial sector’s outlook begins to brighten again."

Preserving the Wealth Creation Engine of America - Javier Tordable blog on Software, Mathematics and Technology

Javier Tordable writes in Preserving the Wealth Creation Engine of America - Javier Tordable blog on Software, Mathematics and Technology
"Over the last few decades hundreds of companies, thousands of jobs and billions of dollars of real wealth were created by startups with the support of angel investors. The possibility of a small company to obtain seed funding with little more than an idea is indeed one of the most important wealth creation engines of America. Now this possibility, this engine, is at stake.

There is a bill currently under review in the Senate that includes two provisions that directly threaten the way that startups are funded. The bill is the "Restoring American Financial Stability Act of 2010” supported by Senator Dodd. Even though the intention of the bill is noble, to attempt to protect investors against fraudulent investment requests, two of its sections can have severe unintended consequences for the economy and the society of the United States."
What are they?

Read the full posting here.

Thursday, March 4, 2010

After a 30-Year Run, Rise of the Super-Rich Hits a Wall - NYTimes.com

After a 30-Year Run, Rise of the Super-Rich Hits a Wall - NYTimes.com
"The rich have been getting richer for so long that the trend has come to seem almost permanent.

They began to pull away from everyone else in the 1970s. By 2006, income was more concentrated at the top than it had been since the late 1920s. The recent news about resurgent Wall Street pay has seemed to suggest that not even the Great Recession could reverse the rise in income inequality.

But economists say — and data is beginning to show — that a significant change may in fact be under way. The rich, as a group, are no longer getting richer. Over the last two years, they have become poorer. And many may not return to their old levels of wealth and income anytime soon."
Read the rest here.

Hedgies, private equity dance to investors' tune | Reuters

Hedgies, private equity dance to investors' tune | Reuters

The Century of the Emerging Market

Heather Timmons and Vikas Bajaj at the New York Times in Corporate Deal Makers Head to Emerging Markets quote David Viniar, Goldman Sachs chief financial officer:
"“This will be the century” of the emerging market...."

Sunday, February 28, 2010

Carlyle Group and Fosun Group of China to Launch Private Equity Joint Venture in China

Carlyle, Fosun Group To Launch Private-Equity Fund JV - Source - WSJ.com
"SHANGHAI (Dow Jones)--Carlyle Group L.P. and Chinese conglomerate Fosun Group plan to launch a private-equity fund joint venture in China, ..."

World Financial Crisis - The Worst is Over Says Blackstone's Schwarzman

World Financial Crisis - The Worst is Over Says Blackstone's Schwarzman

Jason Kelly writes:
"February 26, 2010 from Bloomberg -- Blackstone Group Inc., the world’s biggest private-equity company, paid Chairman Stephen Schwarzman a salary of ....

Schwarzman, 63, told investors yesterday that “the worst is over” as markets stabilize and buyout managers are able to sell some assets and make deals."

Something Very Strange Is Happening With Treasuries -- Seeking Alpha

Something Very Strange Is Happening With Treasuries -- Seeking Alpha

Some comments might be interpreted to suggest that the Fed is buying up its own treasuries - as a way of printing money.
As "swaps" notes in the comments:
"To sum up then, the U. S. government might as well drop the facade and just issue money without borrowing it. As the Constitution calls for. Tim Geithner should make the call to do this because if, like Kennedy and Lincoln, someone wants blood it won't be Obama's.
The U. S. borrowing money when it never had to do so in the first place - was a bad idea. And this entire mess is the result of that.
It's my understanding that Russia just prints money for projects, then soaks up the excess with taxation. How did they get so smart? Was it their bankruptcy filing a few years ago?"

Is 'man who broke the Bank of England' George Soros at centre of hedge funds betting against crisis-hit euro? | Mail Online

Is 'man who broke the Bank of England' George Soros at centre of hedge funds betting against crisis-hit euro? | Mail Online:
by Karl West

Wednesday, February 24, 2010

Wall Street and the China Market : Morgan Stanley Out : Private Equity In

Wall Street is retreating from China - MarketWatch

Morgan Stanley is reported as retreating from Chinia, but MarketWatch writes that private equity is "in" to China:
"[P]rivate-equity firms -- given the dearth of cheap bank financing and opportunities in the established U.S. and European markets -- have turned their eyes to the so-called BRIC countries, Brazil, Russia, India and China."

Intellectual Ventures and Invention Capital : Financing Inventors and Monetizing Creations : Making Big Money out of Patents : The "New" Software ?

Intellectual Ventures has been labelled "Intellectual Vultures" as a consequence of its acquisition of 30,000 patents and collection thus far of more than $1 billion in license fees. That is big business. What goes on?

In Investment Firm Hopes to Turn Patents Into Invention Capital Market, Steve Lohr at the New York Times reports on this "nonpracticing entity" - called a patent troll by its detractors - that makes no products of its own but deals in patents only.

The March 2010 Issue of the Harvard Business Review under the title Funding Eureka! features an article written by Nathan Myhrvold, former chief technology officer at Microsoft and Founder and CEO of Intellectual Ventures, in which Myhrvold makes the case that his company is not a patent troll but is trying to "create a capital market for inventions" and "to make applied research a profitable activity that attracts vastly more private investment than it does today".

Is it possible that Myhrvold represents the future of patents?

Wednesday, February 3, 2010

Be An Angel; Help an Entrepreneur

Be An Angel; Help an Entrepreneur
by FC Expert Blogger Francine Hardaway
"So we need the creation of new businesses. Well, why aren’t they forming? After all, 10% of us are out of work. Isn’t that when new businesses form?"

Saturday, January 23, 2010

Private Equity-Backed IPOs Kick Off 2010 With A Whimper - Private Equity Beat - WSJ

Private Equity-Backed IPOs Kick Off 2010 With A Whimper - Private Equity Beat - WSJ

The Week In Private Equity: All-Conflict Edition - Private Equity Beat - WSJ

The Week In Private Equity: All-Conflict Edition - Private Equity Beat - WSJ

Josh Beckerman writes:
"Big Brother vs. The Banks. President Barack Obama’s administration’s proposed new rules for banks and the potential impact on private equity make the carried interest tax debate seem almost quaint by comparison."

BaltCap inks €30m Latvian VC fund agreement with EIF

BaltCap inks €30m Latvian VC fund agreement with EIF
"Eastern European private equity firm BaltCap has signed an agreement with the European Investment Fund to establish a €30m venture capital fund.

BaltCap Latvia is the first venture capital fund manager to successfully complete private fundraising under EIF managed JEREMIE initiatives in Europe."