#Private Equity Investment

[quadriacapital]

Quadria Capital: A Leading Private Equity Firm Driving Healthcare Innovation in India

Private equity investment involves providing capital to companies that are not publicly traded. These investments usually focus on long-term growth, operational improvements, and strategic value creation. Private equity firms typically invest in businesses that have potential for significant growth or require capital for restructuring, expansions, or development.

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[uspec]

Learn how to access private equity investments easily, with insights into strategies, benefits, entry points, and trends shaping the private equity landscape. Private equity has a significant influence on financial markets, presenting investors with opportunities distinct from public equities.

[mostlysignssomeportents]

Red Lobster was killed by private equity, not Endless Shrimp

For the rest of May, my bestselling solarpunk utopian novel THE LOST CAUSE (2023) is available as a $2.99, DRM-free ebook!

A decade ago, a hedge fund had an improbable viral comedy hit: a 294-page slide deck explaining why Olive Garden was going out of business, blaming the failure on too many breadsticks and insufficiently salted pasta-water:

https://www.sec.gov/Archives/edgar/data/940944/000092189514002031/ex991dfan14a06297125_091114.pdf

Everyone loved this story. As David Dayen wrote for Salon, it let readers "mock that silly chain restaurant they remember from their childhoods in the suburbs" and laugh at "the silly hedge fund that took the time to write the world’s worst review":

https://www.salon.com/2014/09/17/the_real_olive_garden_scandal_why_greedy_hedge_funders_suddenly_care_so_much_about_breadsticks/

But – as Dayen wrote at the time, the hedge fund that produced that slide deck, Starboard Value, was not motivated by dissatisfaction with bread-sticks. They were "activist investors" (finspeak for "rapacious assholes") with a giant stake in Darden Restaurants, Olive Garden's parent company. They wanted Darden to liquidate all of Olive Garden's real-estate holdings and declare a one-off dividend that would net investors a billion dollars, while literally yanking the floor out from beneath Olive Garden, converting it from owner to tenant, subject to rent-shocks and other nasty surprises.

They wanted to asset-strip the company, in other words ("asset strip" is what they call it in hedge-fund land; the mafia calls it a "bust-out," famous to anyone who watched the twenty-third episode of The Sopranos):

https://en.wikipedia.org/wiki/Bust_Out

Starboard didn't have enough money to force the sale, but they had recently engineered the CEO's ouster. The giant slide-deck making fun of Olive Garden's food was just a PR campaign to help it sell the bust-out by creating a narrative that they were being activists* to save this badly managed disaster of a restaurant chain.

*assholes

Starboard was bent on eviscerating Darden like a couple of entrail-maddened dogs in an elk carcass:

https://web.archive.org/web/20051220005944/http://alumni.media.mit.edu/~solan/dogsinelk/

They had forced Darden to sell off another of its holdings, Red Lobster, to a hedge-fund called Golden Gate Capital. Golden Gate flogged all of Red Lobster's real estate holdings for $2.1 billion the same day, then pissed it all away on dividends to its shareholders, including Starboard. The new landlords, a Real Estate Investment Trust, proceeded to charge so much for rent on those buildings Red Lobster just flogged that the company's net earnings immediately dropped by half.

Dayen ends his piece with these prophetic words:

Olive Garden and Red Lobster may not be destinations for hipster Internet journalists, and they have seen revenue declines amid stagnant middle-class wages and increased competition. But they are still profitable businesses. Thousands of Americans work there. Why should they be bled dry by predatory investors in the name of “shareholder value”? What of the value of worker productivity instead of the financial engineers?

Flash forward a decade. Today, Dayen is editor-in-chief of The American Prospect, one of the best sources of news about private equity looting in the world. Writing for the Prospect, Luke Goldstein picks up Dayen's story, ten years on:

https://prospect.org/economy/2024-05-22-raiding-red-lobster/

It's not pretty. Ten years of being bled out on rents and flipped from one hedge fund to another has killed Red Lobster. It just shuttered 50 restaurants and declared Chapter 11 bankruptcy. Ten years hasn't changed much; the same kind of snark that was deployed at the news of Olive Garden's imminent demise is now being hurled at Red Lobster.

Instead of dunking on free bread-sticks, Red Lobster's grave-dancers are jeering at "Endless Shrimp," a promotional deal that works exactly how it sounds like it would work. Endless Shrimp cost the chain $11m.

Which raises a question: why did Red Lobster make this money-losing offer? Are they just good-hearted slobs? Can't they do math?

Or, you know, was it another hedge-fund, bust-out scam?

Here's a hint. The supplier who provided Red Lobster with all that shrimp is Thai Union. Thai Union also owns Red Lobster. They bought the chain from Golden Gate Capital, last seen in 2014, holding a flash-sale on all of Red Lobster's buildings, pocketing billions, and cutting Red Lobster's earnings in half.

Red Lobster rose to success – 700 restaurants nationwide at its peak – by combining no-frills dining with powerful buying power, which it used to force discounts from seafood suppliers. In response, the seafood industry consolidated through a wave of mergers, turning into a cozy cartel that could resist the buyer power of Red Lobster and other major customers.

This was facilitated by conservation efforts that limited the total volume of biomass that fishers were allowed to extract, and allocated quotas to existing companies and individual fishermen. The costs of complying with this "catch management" system were high, punishingly so for small independents, bearably so for large conglomerates.

Competition from overseas fisheries drove consolidation further, as countries in the global south were blocked from implementing their own conservation efforts. US fisheries merged further, seeking economies of scale that would let them compete, largely by shafting fishermen and other suppliers. Today's Alaskan crab fishery is dominated by a four-company cartel; in the Pacific Northwest, most fish goes through a single intermediary, Pacific Seafood.

These dominant actors entered into illegal collusive arrangements with one another to rig their markets and further immiserate their suppliers, who filed antitrust suits accusing the companies of operating a monopsony (a market with a powerful buyer, akin to a monopoly, which is a market with a powerful seller):

https://www.classaction.org/news/pacific-seafood-under-fire-for-allegedly-fixing-prices-paid-to-dungeness-crabbers-in-pacific-northwest

Golden Gate bought Red Lobster in the midst of these fish wars, promising to right its ship. As Goldstein points out, that's the same promise they made when they bought Payless shoes, just before they destroyed the company and flogged it off to Alden Capital, the hedge fund that bought and destroyed dozens of America's most beloved newspapers:

https://pluralistic.net/2021/10/16/sociopathic-monsters/#all-the-news-thats-fit-to-print

Under Golden Gate's management, Red Lobster saw its staffing levels slashed, so diners endured longer wait times to be seated and served. Then, in 2020, they sold the company to Thai Union, the company's largest supplier (a transaction Goldstein likens to a Walmart buyout of Procter and Gamble).

Thai Union continued to bleed Red Lobster, imposing more cuts and loading it up with more debts financed by yet another private equity giant, Fortress Investment Group. That brings us to today, with Thai Union having moved a gigantic amount of its own product through a failing, debt-loaded subsidiary, even as it lobbies for deregulation of American fisheries, which would let it and its lobbying partners drain American waters of the last of its depleted fish stocks.

Dayen's 2020 must-read book Monopolized describes the way that monopolies proliferate, using the US health care industry as a case-study:

https://pluralistic.net/2021/01/29/fractal-bullshit/#dayenu

After deregulation allowed the pharma sector to consolidate, it acquired pricing power of hospitals, who found themselves gouged to the edge of bankruptcy on drug prices. Hospitals then merged into regional monopolies, which allowed them to resist pharma pricing power – and gouge health insurance companies, who saw the price of routine care explode. So the insurance companies gobbled each other up, too, leaving most of us with two or fewer choices for health insurance – even as insurance prices skyrocketed, and our benefits shrank.

Today, Americans pay more for worse healthcare, which is delivered by health workers who get paid less and work under worse conditions. That's because, lacking a regulator to consolidate patients' interests, and strong unions to consolidate workers' interests, patients and workers are easy pickings for those consolidated links in the health supply-chain.

That's a pretty good model for understanding what's happened to Red Lobster: monopoly power and monopsony power begat more monopolies and monoposonies in the supply chain. Everything that hasn't consolidated is defenseless: diners, restaurant workers, fishermen, and the environment. We're all fucked.

Decent, no-frills family restaurant are good. Great, even. I'm not the world's greatest fan of chain restaurants, but I'm also comfortably middle-class and not struggling to afford to give my family a nice night out at a place with good food, friendly staff and reasonable prices. These places are easy pickings for looters because the people who patronize them have little power in our society – and because those of us with more power are easily tricked into sneering at these places' failures as a kind of comeuppance that's all that's due to tacky joints that serve the working class.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/05/23/spineless/#invertebrates

[arohanalegal]

Empower your Financial Journey with Private Equity Investment - Arohana Legal

Arohana Legal: Empowering Your Financial Journey with Cutting-Edge Fintech Solutions. Unlock the potential of your business with our innovative tools and services. Stay ahead in the competitive financial landscape with Arohana Legal as your trusted partner. Discover how we can transform your financial future today : https://arohanalegal.com/practice-area/fintech-solutions/

[ycchenadvisor]

Discover the power of private equity investment as a catalyst for business expansion and innovation. Learn how this strategic financial approach fuels success. If you want more information for my service related, then you can contact YC Chen +86 755 8983 0009 and get more information.

[kenzie-ann27]

I actually want to sit down and do the math on just how much money stewy made on the gojo deal, like it has to be insane?

update: stewy bought four billion dollars worth of waystar stock at ~ 129 a share in lifeboats (about 31 million shares); in the finale, matsson buys the company out for 192 per share, leaving stewy with a whole $5,953,488,372.09, so he made about two billion on that deal. which isn't half bad considering kendall, shiv, and roman combined were going to make ten billion.

extra update: I hate that this made its way to twitter when I was so wrong 😭 kendall says in the munsters that they would make three billion on the gojo sale, not ten; they were going to partner up to get the rest of the money to buy pierce. so! knowing that! I was able to do more math. if they were going to make three billion at 144 a share, the final sale at 192 gave them four billion dollars even, or about 1.3 each.

stewy hosseini, you officially made more money than kendall roy. what a guy.

[fernandoaguirreofficial]

Fernando Aguirre 4 Essential Tips to Equity Securities

In the world of finance, mastering equity securities is crucial for investors seeking to build a robust portfolio. Renowned investor Fernando Aguirre Executive Vice Chairman at DHS Ventures, shares 4 indispensable tips to navigate the complexities of equity investments.

[equicorplegal]

Equi Corp Legal has the best lawyers in Delhi NCR

[crratbc]

Thebrief’s key findings are:

In FY 2022, public pension plans experienced negative asset returns, and some say it could have been even worse without alternative investments.

But the real question is have alternatives (private equity, hedge funds, real estate, and commodities) helped or hurt over the long term?

The results suggest that, from 2001-2022, alternatives have not helped overall returns – although they may have reduced volatility.

[lunamehta]

What is Channel Partner and How to become Channel Partner with Planify

Channel Partner is a program that is offered by Planify for financial advisors to associate and partner with Planify. Meaning that they sell the products on behalf of the company but they are an independent partner. This enables the advisors to offer financial planner, Private equity, Pre IPO, and start-up for the stocks to their investor client base. How to become Channel Partner Planify will be registering the partner under KYP - Know your partner program and will be required to submit the following documents - Aadhar Card - Pan Card - Bank Cancel Cheque - Photograph - License copy from SEBI, AMFI or IRDA Who can be a channel partner with Planify? Channel Partner is a program that is offered by Planify Capital Limited for financial advisors to associate and partner with Planify Capital Limited. who has a knack for investments, stocks, and Private Equity can become a channel partner with Planify Capital Limited. Mutual fund agent, Insurance Agent, Insurance Advisor, Investment Advisor, Financial Advisor, Stock Broker, Authorized person, Financial planner, Employees working in Financial Institutions can become channel partner with Planify Capital Limited.

[quadriacapital]

Private Equity Investment | Quadria Capital | New Delhi

At Quadria Capital, we understand that private equity investment is not merely about capital infusion; it's about forging strategic partnerships that drive growth, innovation, and long-term value. Private equity (PE) investment involves the infusion of capital into private companies—those not listed on public stock exchanges—through direct investments or buyouts. Our approach emphasizes partnership and collaboration, ensuring that all parties are working towards common goals.  Contact us today to know more about our private equity investment opportunities and how we can work together to create lasting value.

[nothingunrealistic]

Cash Transactions | Exit

Transaction Type | Credit/Debit | Account | To/From Who | Comment

Private Equity Investment | -$200,000,00.00 | Axe Capital LLC | Genometech Atlas | Series E Investment. See docs

Pay | -$22,372.57 | Axe Capital Expenses | Claspan Electric | Electric

Capital Gain | $10,450,000.00 | Axe Capital LLC | Chital Group

Vendor | -$34,911.38 | Axe Capital Expenses | One Nova Technologies | Annual audit

Pay | -$16,398.98 | Axe Capital Expenses | McClure and McLeary Foods | Catering

Capital Gain | $2,698,445.89 | Axe Capital Offshore | Hoffman and Hoffman Bank

Private Equity Investment | -$17,000,000.00 | Axe Capital LLC | Gulcan Wind | Contract (Link)

Capital Gain | $362,892,081.15 | Axe Capital LLC | Pillar Coral International

Redemption | -$1,500,000,000.00 | Axe Capital Grigor | Andolov Industries LLC

Private Equity Investment | $13,000,000.00 | Axe Capital LLC | One Beta Sciences

Pay | -$82,234,000.00 | Axe Capital LLC | Francis Powell Motors

Settlement | $240,000.00 | Axe Capital LLC | Hoffman and Hoffman Bank

Capital Gain | $120,319,021.26 | Axe Capital LLC | White Summit Air

Pay | -$23,234.22 | Axe Capital LLC | Kassia Industries

Private Investment in Public Equity | -$8,500,000.00 | Axe Capital LLC | Epsilon Space | Contract (Link)

[Capital Gain | $3,?00,000,]000.00 | Axe Capital Grigor | Andolov Industries LLC | Cap Raise

[hard-money-loansa-quick-guide]

Hard Money Loans: A Quick Guide

Hard money loans: A quick and easy way to secure financing for real estate investments.

Confused about hard money loans? Our latest infographic breaks down everything you need to know:

What are hard money loans?

How do they work?

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Pros and cons

[zoginvestment]

Private Equity Investment is a popular form of investment in companies and business ventures that are not publicly traded. These private equity investment opportunities tend to offer high returns and are less correlated to public markets. Investors in private equity funds raise money from limited partners and then use it to invest in other companies. They often participate in leveraged buyouts, which involve purchasing a company and then turning it around to make it more profitable.

[sganalytics]

Unlocking Value Through Private Equity Services: A Comprehensive Overview

Private equity (PE) has emerged as a pivotal force in the global financial ecosystem, enabling companies to unlock value, achieve growth, and drive innovation. Unlike traditional investment strategies that focus on publicly traded securities, private equity involves investing directly in private companies or taking public companies private. This investment approach typically aims to enhance the operational performance, strategic direction, and overall value of a business over a defined period, with the goal of realizing a significant return on investment when the business is eventually sold or taken public again.

What Are Private Equity Services?

Private equity support services encompass a wide range of activities designed to support the entire investment lifecycle. These services are often provided by specialized firms or divisions within larger financial institutions, and they include:

Deal Sourcing: Identifying potential investment opportunities is the first step in the private equity process. This involves extensive market research, networking, and leveraging industry connections to find companies that meet specific investment criteria.

Due Diligence: Once a target company is identified, thorough due diligence is conducted to assess its financial health, operational capabilities, market position, and growth potential. This stage is critical in determining whether the investment aligns with the private equity firm’s strategy and risk tolerance.

Valuation and Structuring: Valuation is a key component of any private equity deal. Professionals use various methods, such as discounted cash flow analysis and comparable company analysis, to determine a fair price for the target company. The deal is then structured to align the interests of both the private equity firm and the company’s management.

Financing: Private equity deals often involve a mix of equity and debt financing. Firms work with banks and other financial institutions to secure the necessary funding while optimizing the capital structure to maximize returns.

Portfolio Management: After the investment is made, private equity firms actively manage their portfolio companies. This can involve strategic guidance, operational improvements, financial restructuring, and even replacing or supplementing the management team to achieve desired outcomes.

Exit Strategy: The final stage in the private equity lifecycle is the exit. Firms seek to sell their stake in the portfolio company, ideally at a significant profit. Common exit strategies include initial public offerings (IPOs), sales to strategic buyers, or secondary buyouts.

The Role of Private Equity in Business Growth

Private equity can be a powerful catalyst for growth and innovation. By providing capital and expertise, private equity firms help companies expand into new markets, develop new products, and improve operational efficiency. This hands-on approach contrasts with passive investment strategies, where investors have little influence over the companies they invest in.

Moreover, private equity often drives consolidation in fragmented industries, creating stronger, more competitive entities. This consolidation can lead to economies of scale, enhanced market share, and improved profitability.

Challenges and Considerations

While private equity offers significant potential rewards, it also comes with risks. The highly leveraged nature of many private equity deals can amplify losses if a portfolio company underperforms. Additionally, the pressure to achieve high returns can lead to aggressive cost-cutting measures, which may not always align with the long-term health of the business.

Investors must also consider the illiquid nature of private equity investments, as capital is typically tied up for several years before an exit can be realized.

Conclusion

Private equity services play a crucial role in the investment landscape, offering the potential for high returns and substantial business growth. By navigating the complexities of deal sourcing, due diligence, valuation, and portfolio management, private equity firms unlock value and drive success for their portfolio companies. However, like any investment strategy, it requires careful consideration of risks and a long-term perspective to achieve the desired outcomes.