Asset Classes

Private Equity
PE
Equity

Private Equity is any form of private equity that is not traded on public stock exchanges.

More About Private Equity

Entities

Bain Capital
Carlyle Group
Clayton Dubilier & Rice

Terms

Leveraged Buyout

Mentioned by the Following

Entities

Carlyle Group
Bain Capital
Allied Capital Corporation
The DeRosa Group
Founders Fund
Verdad Advisers
Wind Point Partners
Cooper Family Office
Salient

EntityTypes

Private Equity Fund

People

Mike Milken
Austin Root
Carl Delfeld
John Jagerson
David Fried
Bob Lang
Blake Masters
Christopher Cole
Dan Rasmussen
Danielle Booth
Russell Napier
Andy McCulloch
Joe Lawler
Kent Collier
Sarah Gefter
Barclay Leib
Anthony Canale
Dee Smith
Brad Thomas
Jason Goepfert
Woody Brock
Ben Hunt
Giovanni Pozzi
Vincent Catalano
Matt Rowe
Keith McCullough

Publications

Investment Valuation
Raising Private Capital
The Weekly Quill

Strategies

Venture Capital

Terms

Leveraged Buyout
Alternative Investment
Collateralized Loan Obligation

  • typically have lower volatility than private equity - due to infrequent and self-determined valuations (no daily price like public markets)


Examples of Public Equity
  • Investments in private startups
  • Investments in Private Equity Funds
  • Investments in non-public LLCs and partnerships


Massive Expansion After 2008 Financial Crisis

  • Private Equity assets grew 7x after the 2018 Financial Crisis (circa 2020)
  • Driven by desire for higher returns and lower volatility (thanks to infrequent asset valuations vs. public market real-time valuation)
  • Resulted in private equity firms being more competitive and paying higher prices
  • Debt levels have increased (higher EBITDA multiples) & loan covenants have decreased
  • Banks have limited loans (too risky with high ration).  Private debt markets have taken over