Tuesday, January 5, 2010

CVC Capital Partners

CVC Capital Partners is one of today’s leading global private equity and investment advisory firms. Established way back in 1981, the firm now maintains a network of 19 offices all over Asia and Europe, as well as in certain parts of the United States, in addition to its main headquarters in Luxembourg.

CVC stands distinctively in the midst of the private equity industry. This is mainly due to the extensiveness of its office network, as well as to the length of time it has been active in several countries, combined with the depth of the knowledge of its investment professionals. CVC Capital Partners is armed with the capability to combine and deliver vast cross border resources in order to obtain high quality companies and help them realize their full potential. The firm’s local knowledge and expertise emphasizes the success that it has attained throughout the 27 years of its existence.

The firm places more of its focus towards establishing businesses over the long term, while typically holding investments for five years or more. The firm’s funds possess a variety of portfolio investments. CVC Capital Partners collaborates effectively with the management teams of their portfolio companies, as well as with industrial advisors and appointed non-executive directors, in order to develop strategies that would enhance their portfolio company’s overall performance while leaving it to realize a lasting value.

The firm believes that through an effective combination of ownership and management, the company becomes more capable of creating benefits for the whole of its stakeholders, employees, customers, suppliers, as well as to the wider community.

CVC Capital Partners’ investors receive distributions from the gains produced from the firm’s various investments that include public and corporate pension plans, insurance companies, financial institutions, university endowments, and even through investments from individuals.

Monday, January 4, 2010

The Carlyle Group

With a total of more than $84.5 billion funds under its management, the Carlyle Group has become one of the largest private equity firms worldwide. The group takes on a global vision and combines it with local insight that relies on a top-flight team of more than 495 investment executives and professionals. These personnel operate in offices scattered in over 20 countries, including Europe, North America, Asia, the Middle East, Australia, and Latin America. These placements give the Carlyle Group a greater global foothold.

The Carlyle Group focuses its investments on certain sectors. These include automotive and transportation, aerospace and defense, consumer and retail, financial services, energy and power, healthcare, infrastructure, industrial, real estate, technology and business services, as well as media and telecommunications.

In the mercurial and competitive field of the industry it specializes in, the Carlyle Group has a decisive edge over its competitors in that it can skillfully utilize the local insight of its investment executives and professionals. As a result of the Carlyle Group’s extensive collaboration with its investment disciplines that originates from deal sourcing, the firm now has a broader view of more opportunities in investments in addition to a more profound level of expertise.

The firm’s team of investment professionals and executives includes a total of 181 MBA holders, 31 JD holders, as well as six PhD/MD holders coming from the most prestigious universities around the world. The Carlyle Group stands out from other private equity firms due to its global presence and vast knowledge regarding the local market.

Headquartered in Washington, DC and having a total of more than 890 employees, the Carlyle Group manages a total of 64 funds across 20 countries. Its operations adhere to the firm’s conservative investment philosophy, which pushes the firm to strive for consistency in all its undertakings.

Wednesday, December 30, 2009

Apax Partners

Apax Partners LLP serves as the holding company in behalf of the worldwide Apax partnership, which in turn serves as the lead investment adviser to the latest Apax Funds. The firm is an independent private equity advisory firm with operations worldwide. The firm technically places its investments in five different growth sectors including retail and consumer, media, technology and telecommunications, healthcare, and financial & business services.

The firm hands over capital for a number of important investors such as private pension funds, university endowments, insurance companies, and other financial institutions. It also purchases both minor and major stakes in huge companies that possess a strong and established position in the market and a good potential to expand.

Moreover, the firm also finances first-rate management teams in order to facilitate well-organized and sustainable businesses that possess a commendable track record of progress as a result of investing in research and development, sales, export, as well as employment.

The firm aims to help companies, management teams, and portfolio company employees to release their full potential in order to generate more returns for the vast number of individuals whose investment plans and pension funds are handed over to the firm’s funds.

The Apax Partners firm focuses its investments in large companies across the five specific aforementioned global growth sectors and has done so for the past 25 years. Staffed by local nationals, the firm’s offices were completed within an average of 13 years. The firm’s advantage in terms of finding new and fresh investment opportunities comes from its close relationships with tough decision makers in every country or location they operate in.

Currently employing an average of 300 workers, Apax Partners is among the small groups involved in the private equity industry to have effectively embraced the challenges of today’s issue of globalization.

Wednesday, December 23, 2009

Warburg Pincus LLC

Actively operating as a private equity and venture capital firm, Warburg Pincus LLC places its investments in all stages of a company’s growth, from the primary founding startups, to early stage financing, to growth equity investments, as well as in developing companies, recapitalizations, restructurings, and the management buyouts of mature businesses.

The Warburg Pincus firm also invests in the changes made within control leveraged buyout transactions, minority private investments made in public companies, divisional spinouts of noncore corporate assets, as well as transactions made in favor of special situations while putting emphasis on the acquisition of undervalued companies.

In general, the firm typically invests in healthcare, financial services, media, telecommunications, energy, consumers and industrials, as well as in real estate sectors. In terms of life sciences and healthcare, the firm aims to invest in schemes that offer valuable services such as medical devices, healthcare services, specialty pharmaceuticals, and biotechnology. On medical devices, the firm shifts more of its attention to specific concerns including interventional cardiology, diabetes, orthopedics, as well as urology or gynecology. As for the investments made in financial services, Warburg Pincus places it investments primarily in private banking, specialty and consumer finance, payment and transaction processing companies, financial technology exchange, insurance companies, asset and wealth management, and in depository institutions.

With all these investments, the firm has become a global leader in the industry. Throughout its track record of more than 40 years, the firm has successfully invested over $29 billion in more than 600 companies in 30 countries all over the globe.

In an effort to create sustainable value, the firm has continuously partnered with superior management teams. As a result, Warburg Pincus has helped many companies formulate strategies, conceptualize, as well as execute creative financing structures, and employ talented and knowledgeable executives and professionals.

Wednesday, December 16, 2009

Madison Dearborn Partners

The Madison Dearborn Partners is a private equity firm founded in 1992. Based in Chicago, Illinois, the firm offers specialized services that are relevant in the leveraged buyout of either privately held or publicly traded companies, as well as subsidiaries of a larger company, recapitalizations of closely held or family owned companies, acquisition financings, restructuring of balance sheets, and growth capital investments in highly developed companies.

Previously, the founders of the firm completed private equity investments for the First Chicago Bank. The firm’s chairman, John Canning, Jr., also holds a position as a minority owner of the Milwaukee Brewers baseball team.

Headed by a group of prominent visionaries, the Madison Dearborn Partners teamed up with Michael Eisner’s Tormante investment company on 2007 in order to purchase the baseball card maker Topps Company. For two consecutive years, the firm successfully completed a bunch of publicly traded companies including CDW, LA Fitness, Asurion, Nuveen Investments, Univision Communications, VWR International, Sorenson Communications, and the Yankee Candle.

On June 30 of the same year, the Bell Canada Enterprises (or the BCE) announced that the company entered into a definitive agreement that allowed Bell Canada Enterprises to be purchased with adherence to a certain plan of arrangement made by an investor group headed by the Ontario Teachers’ Pension Plan’s private investment arm, the Teachers Private Capital, as well as the Providence Equity Partners Inc., and the Madison Dearborn Partners. The all-cash transaction was valued at a total of C$51.7 billion, or US$48.5 billion, with the inclusion of C$16.9 billion worth of preferred equity, debt, as well as minority interests. The agreement was then approved on September of 2007 during a special meeting attended by a group of shareholders. The agreement was decided upon by more than 97% of the total votes casted by the holders of preferred and common shares.

Monday, December 14, 2009

Jumpstarting Your Investment in Stocks

While in a time or two, other investment vehicles have outperformed stocks, it has been proven to be the most reliable. What type of stocks is right for you? There are several options: individual stocks, index funds, mutual funds, index funds, ETFs, domestic, and foreign. Before choosing, here are a few pointers to serve as guide for the inexperienced and experienced investor alike.

Personality type
Different personality types are well-suited for particular types of stocks. Generally, there are three kinds of investors – risk taker, risk averse, and middle. If you are not inclined to risk and want to stay safe and sure, go for mutual funds or index funds. Because these are well-diversified and contain different stocks, going for them reduces risk and does not entail individual stock research.

Time factor
Deciding to invest in stocks, funds, or both depends on how much time you are willing to dedicate. Individual stocks are the most time-consuming because investing in them requires research, judgments on earnings, management, and future prospects. Mutual and index funds are less time-consuming since the fund manager picks stocks for you. Index funds are even simpler since they move according to type of market or company they track.

Diversification
Do not invest in only one type of asset. It is potentially disastrous for your portfolio. Spread your assets across different sectors such as real estate, commodities, insurance, etc. Consider diversification across asset classes as well.

Recommended portfolio
For beginners: a portfolio for the inexperienced would consist of a couple of index funds. One index fund to track the broad market and one to give foreign exposure will be a boost.
For individual stocks: a portfolio composed of 12-20 carefully selected individual stocks will give you diversification and is just enough for you to follow regularly. For those who do not have or do not want to invest time on following many stocks, a portfolio mix of individual stocks and index funds is favorable.

Monday, December 7, 2009

The 10 Commandments of Sound Investing

Like the Ten Commandment in the Bible, the rules presented in this article collectively act as a guide toward sound and responsible investing.

1. Thou shalt set clear goals. Invest only if you have clear objectives in sight. Without this, your effort and money may soon be put to waste.
2. Thou shalt put thy financial house in order. If you are up to the neck in credit card debt or bills, investing is a bad idea. Take care of these concerns first before investing.
3. Thou shalt question authority. Investment requires the initiative to ask and answer the questions. Do not rely on what the higher-ups – CEOs, CFOS, CFAs – say will be good for investment. Educate yourself and research on concrete financials.
4. Thou shalt not follow sheep. Herd mentality has proven to be injurious in Wall Street. Accepting information without being critical consequently leads to this behavior. Check things and determine the real value of stocks.
5. Thou shalt be humble. Overconfidence leads to overtrading that in turn leads to unnecessary risk-taking and losses.
6. Thou shalt be patient. Patience is a virtue in investing because the trait pays for itself. The best behavior in a crisis is to take your time.
7. Thou shalt show moderation. When you invest in too many stocks at the same time, you may find yourself pulling out prematurely, so practice moderation.
8. Thou shalt not ogle thy investment. Over-monitoring your investment is a no-no. The more you excessively oversee, the more you want to blend investments.
9. Thou shalt not court or spurn risk. There is a unique threshold of risk for every investor by creed and age.
10. Thou shalt not make heroes of mere men. Idolizing too much of finance greats and mimicking their strategy is a bad idea. You can learn from them but need to develop an independent mind.