So you need to secure funding for your startup, but you are not sure you want to give up equity right away, especially because you do not want to put a value on your company too early. You also are not sure what your company is even worth and would like more time in order…
Month: October 2013
A Flash of Light in a Dark Holding Environment? Apollo’s Resuscitation of the Quick Flip
The peak purchase prices private equity firms secured immediately prior to the financial crisis have left many firms stuck with poor exit options after portfolio valuations plunged in the aftermath of the crisis. The decrease in portfolio valuations resulted in increased holding times across the private equity industry as profitable exit options disappeared.1 For example,…
Private Equity Funds and the Use of Group Annuity Contracts to De-Risk the Pension Obligations of Portfolio Companies
Private equity firms acquiring portfolio companies with defined benefit pension schemes often overlook the financial risks associated with these funds.1 For private equity firms, the opportunity to realize additional value through efficient risk management of the pension fund by de-risking is an important consideration facilitated by the passage of the Pension Protection Act of 2006…
The SEC Will Remain Open During the Government Shutdown
According to SEC spokesman John Nester, “The SEC will be able to stay open in the event of a funding lapse because we [the SEC] have carryover funds available.”1 According to Business Insider, “John Nester wouldn’t say how much cash the agency has,” however, the SEC issued a contingency plan for operating in the event…
The Dodd-Frank Act – Volcker Rule: More Strain on Foreign Banks Operating in the U.S. Today
The Dodd-Frank Act was enacted on July 21, 2010 after intense debate within the investment banking industry and the political realm in Washington D.C. to address the consequences of the “Lehman Shock” and other lessons learned from the 2008 financial crisis that affected the world economy.1 One area that congress did not consider in depth…
Not Just Another Face in the Crowd: OurCrowd’s Equity Crowdfunding Success
Crowdfunding is “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”1 One of the most recognizable names in crowdfunding is Kickstarter. Kickstarter allows any person to create an account and donate any amount of money to a project they…
Investment Plus What? Sun Capital and the “Investment Plus” Standard
Earlier this year, the First Circuit Court of Appeals delivered its opinion in Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund1, overturning a lower court’s decision and sending lawyers in the private equity industry scrambling to make sense of it.2 In short, Chief Judge Lynch’s opinion held that, in…