#private equity venture capital

[harshitasoni]

Navigating Investments: The World of Private Equity Firms

Examine the symbiotic relationship between private equity and venture capital, showcasing how these financial partners collaborate to fuel entrepreneurial ventures.

[phoenixyfriend]

Ko-Fi prompt from @dirigibird:

I've been looking at investment options but I don't want to be messing around too much with the stock market, and a co-worker suggested exchange traded funds. Would love to know your opinions!

LEGALLY NECESSARY DISCLAIMER: I am not a licensed financial advisor, and it is illegal for me to advise anyone on investment in securities like stocks. My commentary here is merely opinion, not financial advice, and I urge you to not make any decisions with regards to securities investments based on my opinions, or without consulting a licensed advisor. I am also going to be talking this all over from an American POV, which means some of these things may not apply elsewhere.

So instead of letting you know what to pick or how to organize your securities, I'm going to go through the definitions of what various investment funds are, how they compare functionally, and maybe rant about how I disagree with the stock market on a fundamental ethical level if I have word count left over.

If you want more information, and are okay with jargon, I'd suggest hitting up investopedia. That is where I will be double-checking most of my information for this one.

I also encourage folks who know more about the stock market specifically to jump in! I like to think I'm good at research and explaining things, but I'm still liable to make mistakes.

Mutual Funds: A mutual fund is a pool of money and resources from multiple individuals (often vast numbers of people, actually) being put together and managed as a group by investment specialists. The primary appeal of these is that the money is professionally managed, but not personally so; it gives smaller investors access to professional money managers that they would not have access to on their own, at cheaper rates than if they tried to hire one for just their own assets. The secondary appeal is that, due to the sheer number of people, and thus capital, that is being invested at once, the money can be invested in a wide variety of industries, and is generally more stable than investing in just one company or industry. Low risk, low reward, but overall at least mostly reliable. Retirement plans are often invested in mutual funds by employer choice, through companies like Fidelity or John Hancock.

Hedge Funds: A hedge fund is a high risk, high reward mutual fund. Investors are generally wealthy, and have the room and safety to lose large amounts of money on an investment that has no promise of success, especially since money cannot be withdrawn at will, but must remain in the fund for a period of time following investment. It gets its name from "hedging your bets," as part of the strategy is to invest in the opposition of the fund's focus in order to ensure that there is a backup plan to salvage at least some money if the main plan backfires. Other strategies are also on the riskier side, often planning to take advantage of ongoing events like buyouts, mergers, incumbent bankruptcy, and shorting stocks (that's the one that caused the gamestop incident).

Private Equity: Private equity is... a nightmare that got its own incredibly good Hasan Minhaj episode of Patriot Act, so if you've got 20 minutes, an interest in comedically-delivered, easily-digestible, Real Information, and an internet connection, take a watch of that one. (If it's not available on YouTube in your country, it's originally from Netflix, or you can probably access it by VPN.) Private equity companies are effectively hedge funds that purchase entire companies, rebuild them in one way or another, and then sell them at (hopefully) a profit. Very often, the companies purchased by private equity are very negatively impacted, especially if the private equity group is a Vulture Fund. Sometimes, it's by taking it apart to sell off; sometimes it's by just bleeding it for cash until there's nothing left. Sometimes, it's taking over a hospital and overcharging the patients while also abusing the staff! (Glaucomflecken has a lot of videos on the topic of private equity in the medical industry, check him out.)

Venture Capital: In contrast to private equity, which purchases more mature companies, venture capital is focused on startups, or small businesses that have growth potential. These are the kinds of hedge funds that are like a whole group that you'd see some random tv character calling an Angel Investor (they're not actually the same thing, but they overlap by a lot). I'd hesitantly call these less ethically dubious than private equity, but I'm still suspicious.

And finally, to answer your question on what ETFs are and how they fit into the above.

Exchange Traded Funds: ETFs are... sort of like a mutual fund. Sort of. You are, to some extent, pooling your money... ish.

An ETF is like a stock that is made out of partial stocks. So instead of paying $100 for stock A, and not getting stocks B/C/D that all cost the same, you buy $100 of the ETF, which is $25 each of stocks A/B/C/D. You are getting a quarter of a unit of stock, which isn't normally an option, but because you are purchasing through an ETF that officially already bought those Whole stocks, you can now purchase the partial stocks through them.

They buy the whole stocks, then they resell you mixes of those stocks. They still officially own the whole stocks themselves, but you now own parts of the stocks. Basically, you own "stock" in a company that owns stock in other companies, and in that process you own partial stocks in those other companies.

I'm going to re-explain this using fruit.

Imagine you can buy apples, oranges, melons, grapes, etc. You can also buy fruit cups. You can only buy the individual fruits in big batches or you can pool your money with a few other people, hand it to a chef. The chef will decide which fruits look like they'll taste the best by lunch time, buy a bunch of those fruit pallets with your combined money, and plan out the best possible fruit salad for you to share with a bunch of people once lunch rolls around.

You could also buy a fruit cup. You don't have a lot of control over what's already in the fruit cup, but there are a few different mixes available--that one has strawberries, but that one over there uses kiwi, and the other one that way has pineapple--and you can pick which mix you want. It's a pretty small fruit cup, and it's predesigned, but you can choose the one you want without having to pool money with everyone else. You just first have to let someone else design the fruit cups you choose from, and you don't know which ones are probably going to survive the best to lunch time unless you ask a chef (which defeats the purpose of buying a fruit cup instead of pooling your money, and asking the chef costs money).

That's the ETF. The ETF is the fruit cup.

The upside is that you can now just track the prices of your fruit cup, instead of tracking the prices of four different fruits, and so if the price of one fruit drops, you can just... let the other three buoy it.

Of course, in the real world, there are more than just four stocks involved in an ETF. This part of the Investopedia article lists a few examples, and they're usually themed and involve anywhere from 30 (DOW Jones) to thousands (Russell) of shares by stock type, or by commodity/industry. So with the ETF, you can invest in an entire industry, like technology, and just keep track of that single "stock" in the industry game.

They do cost less in brokerage/management fees than regular mutual funds, and they have a slightly lower liquidity (slower to cash out). There also exist actively managed ETFs, which are basically mutual funds for ETFs. You are paying the chef to buy you premade fruit cups.

(Prompt me on ko-fi!)

[vedantofficial]

Is Venture Capital Right for You? A Mid-Career Professional's Guide

The world of Venture Capital (VC) is fast paced, so making a mid-career switch can be challenging. If you are a person with the prospect of fostering innovation and want to invest in the future, then a career in VC can present a remarkable private equity career path. However, switching to venture capital requires careful consideration and strategic planning. 

This blog post highlights the critical factors you need to consider while entering the private equity industry. Conducting a comprehensive evaluation can help you make a precise decision that aligns with your professional aspirations and personal goals. 

Venture Capital Landscape: What you need to know? 

Venture capital firms are involved in both risk and reward business. They invest in high-potential startups with the firm hope of significant future payouts. However, making a successful investment decision involves various factors:  

Knowledge of the market 

Strong networking skills 

Ability to predict trends 

Identify growth potential 

Therefore, before you make a move, ensure to do thorough research on the industry. This will help you understand various perspectives like how venture funds operate, their investment strategies, and the latest industry trends. Another important factor is identifying your niche. As mentioned earlier, the world of Venture capital is vast. Hence, focus on the areas where your experience and interests align with market needs. 

Key Evaluation Factors for Mid-Career Transitions into Venture Capital 

Here's a more detailed version that includes key evaluation factors. These factors can help guide your transition into venture capital, ensuring a thorough assessment of your readiness and fit for this dynamic and challenging field. 

Make a Complete Assessment of Your Transferable Skills 

Mid-career professionals often have a wealth of experience and skills incredibly valued in VC. Ensure to evaluate your strengths on the below measures:  

Strategic Thinking: It is the ability to predict investments 'big picture' and long-term potential. 

Analytical Skills: It demonstrates proficiency in evaluating potential investments' financial health and growth metrics. 

Negotiation and Persuasion: It involves expertise in closing deals and influencing others. 

Industry Expertise: Shows your level of understanding about specific sectors or markets that can be a game-changer. 

Therefore, it becomes crucial to reflect on your previous roles and consider how your experience can benefit a VC firm. Can your technology, healthcare, or finance background provide you with an edge? 

Training and Education 

There is no pre-defined educational qualification for venture capitalists, but certain qualifications can help you understand the industry better. Obtaining a master's degree helps in entering VC.  Courses with a focus on entrepreneurship or finance are especially highly valuable. You may also consider enrolling in special Venture Capital Executive Programs that are designed to teach venture funding principles and processes. You can also obtain a private equity certificate to gain more knowledge.  

Networking and Brand Building 

When it comes to the private equity industry, your ability to network becomes your net worth. Hence, you should develop the ability to build robust relationships within the startup ecosystem and among other investors. 

Attend Industry Events: Enroll in conferences/seminars or other business events, making it a prime networking opportunity. 

Build Online Presence: Start contributing to discussions on platforms like LinkedIn. This helps to establish thought leadership. 

Connect with VC Firms: You can contact Venture Capitalists for informational interviews and insights. 

The Long-term Play 

Venture Capital is not a get-rich-quick career. You should understand that it is an investment that can take years before yielding returns. Also, remember that the work often involves nurturing startups through ups and downs. Another important aspect is the financial consideration. Unlike some mid-career roles, VC positions may start with lower compensation packages, banking on long-term performance incentives. 

Considering Cultural Fit and Work Environment 

VC firms have distinct cultures, from corporate to startup-like environments. Often, the size and reputation of the firm can greatly impact your role and work style. So, consider the work environment and choose a firm whose values resonate with your personal beliefs and professional ethics. 

Wrapping Up 

Transitioning the mid-career into venture capital is an enlivening prospect filled with potential growth. You can witness enormous growth by thoroughly evaluating the industry landscape and aligning your skillset with VC demands. Remember, you can have a successful career by committing to continuous learning and recognizing the importance of networking and culture fit.  

Choosing to step into the private equity career path is more than a career change. It's a commitment to fostering innovation and shaping the future. If you are ready for the challenge, then the opportunities in venture capital can be exceptionally rewarding. 

[petnews2day]

Consumer is actually thriving, says Glossier, Away, Farmer’s Dog-backer Forerunner Ventures

New Post has been published on https://petn.ws/riIDo

Consumer is actually thriving, says Glossier, Away, Farmer’s Dog-backer Forerunner Ventures

Sneaker company Allbirds, which raised over $300 million before its 2021 initial public offering, has seen its stock shed 98% of its value. Peloton has reportedly been entertaining private equity buyers, possibly to sell its at-home exercise business for parts. And, most recently, athleisure bull and former Outdoor Voices CEO Tyler Haney, has pivoted her […]

See full article at https://petn.ws/riIDo #DogNews #Fundraising, #PrivateEquity, #TermSheet, #VentureCapital

[crazynewsnmemes]

How do you feel about private equity firms? 🤔🤔

[macrotechtitan]

Healthtech 2024: Voices in My Head…

From Michael Greely – On the Flying Bridge What is going on? The stock market just hit an all-time high and yet nearly everywhere one looks, there are flashing warning signs. A review of the 2023 investment activity suggests there will be continued challenges in the capital markets. Clearly, the bulls look to the $8.8 trillion in money market funds and conclude that as interest rates continue to…

[archerswealthco]

Archers Wealth - Algo Trading Services in Pune Searching for Algo Trading Services in Pune for exponential growth? Archers Wealth helps you make your Financial Planning Journey Simplified. https://archerswealth.co/

[vander-12]

What is venture capital and how does it work?

By Kelly Knickerbocker Whether you’re booking accommodations through VRBO, grilling up a plant-based burger from Impossible Foods or purchasing groceries through Instacart, you use services and products from venture capital-backed companies every day. Yet people not working in the industry are unlikely to know much about this dynamic, active and evolving world. Even though the global capital…

[oisterglobal]

 OISTER We Invest In Top-Tier Venture Capital Private Equity Funds

At Oister, we are firm believers that private markets unlock value and wealth creation like no other. And that belief has its foundation in our rigorous diligence process which equips us with the confidence to back fund managers across all three asset classes - Venture Capital, Private Equity & Venture Debt.

[vkriseinvesments]

Dunzo: Revolutionizing the Indian Market | A Success Story #youtubefeed

Explore the incredible journey of Dunzo, the Indian startup that conquered the market with its innovative approach to hyperlocal deliveries and services. From groceries to tasks, Dunzo has become a household name, redefining convenience in our fast-paced lives. Join us as we delve into the success story, challenges faced, and the impact Dunzo has had on the Indian market. 🇮🇳✨

[dayofbanks]

Private Equity and Hedge Funds.

Private equity (PE) is a type of equity investment in private companies that are not listed on the stock exchanges. The primary aim of investments by a PE firm is to get involved in the business, increase the value of the business, and sell shares in the business to get the desired payoff. PE strategies involve leveraged buyouts, venture capital, growth capital, distressed investments, and mezzanine capital. The different types of PE funds are categorized as leverage buyout funds, venture capital funds, growth equity funds, and special situation funds. Venture capital is a type of PE investment for promoting new technology, new marketing concepts, and new products. A hedge fund is an alternative investment fund that is available to institutional investors and high net-worth individuals with significant assets. Hedge funds are highly leveraged and invest in high-risk financial derivatives. Popular hedge fund strategies can be categorized as equity-based strategies, arbitrage-based strategies, opportunistic strategies, and multiple strategies. Some of the major investment strategies of hedge funds are equity long strategy, fixed income strategy, convertible arbitrage strategy, funds of fund strategy, global macro, relative value arbitrage, and managed futures.

Learn more on Private Equity and Hedge Funds.

[magistralconsulting1]

"Magistral Consulting's Remarkable Growth in Private Equity, Venture Capital, and Investment Banking Support Makes Headlines."

[enterstatecapital]

Investing in Real Estate Operating Companies: A Comprehensive Guide

"Unlocking Potential: Investing in Real Estate Operating Companies"

Investing in real estate operating companies (REOCs) offers a dynamic opportunity to access the multifaceted world of real estate with a strategic advantage. By aligning capital with established operating companies, investors gain exposure to a diversified portfolio of properties while leveraging the expertise and efficiency of experienced industry professionals. REOC investments provide a pathway to capitalize on the operational aspects of real estate, allowing investors to benefit from income generation, asset appreciation, and active management, all within a single, strategic investment vehicle.

"Diversification and Expertise: The Power of Real Estate Operating Co Investment"

Real Estate Operating Company (REOC) investments provide investors with a well-rounded approach to navigating the complexities of the real estate market. By partnering with seasoned operating companies, investors can tap into a diverse array of property types and markets, reducing risk through portfolio diversification. Moreover, these partnerships enable access to specialized knowledge, insights, and management capabilities that optimize property performance and enhance overall investment returns. REOC investments empower investors to achieve their financial goals while benefiting from the collective experience of industry professionals.

"The Future of Real Estate Investment: Real Estate Operating Co Opportunities"

As the real estate landscape evolves, Real Estate Operating Company (REOC) investments emerge as a forward-looking avenue for investors seeking innovative strategies. REOCs provide an avenue to invest in the underlying operational prowess of real estate, emphasizing active management and value creation. With the potential for consistent cash flow, capital appreciation, and the advantage of partnering with established experts, REOC opportunities reflect a progressive approach to real estate investment, aligning investors with the growth potential and resilience of the market's most dynamic players.

[crazynewsnmemes]

Did the FanDuel founders get screwed?

[ennovance]

Has the golden age of private equity come to an end?

https://www.ft.com/content/8900a606-bb47-45ec-9f40-072cb35e8f51

📌Warburg Pincus and Centerbridge are the latest investors to seize on the turmoil engulfing US regional banks, injecting $400 million to finance PacWest's merger with Banc of California

https://www.bloomberg.com/news/articles/2023-07-26/private-equity-dips-into-its-cash-stockpile-for-pacwest-deal?utm_source=website&utm_medium=share&utm_campaign=twitter via @business

https://twitter.com/mohossain/status/1678878671849897985?s=46&t=GtuOmoaTjOwevz2JidiiDQ