private equity

So many finance hopefuls dream of a career in Private Equity.  But what do you actually DO during your internship, starting out as a full-time Analyst, or as an Associate?  How do those roles differ at a mega fund vs. a smaller firm?  Are there advantages to starting out in Private Equity vs. doing a tour of duty at an Investment Bank or MBB consulting firm?  

We sat down with Karina Petrunova, a current Private Equity Associate at Charles Thayne Capital, a lower middle market fund with a software & technology focus, to learn about her path to Private Equity.   She shares the specific steps she took to secure her first Wall Street internship during her sophomore year, her junior year internship, and ultimately her role at Vista Equity (a $100bn+ mega fund) out of undergrad.  Karina shares insight into the practices that made her a successful intern, analyst, and associate, as well as into her decision making process behind why she chose the firms she did.  

If you are considering a career in Private Equity, or want to understand the journey that your friends and loved ones in the industry may be on, this episode is a MUST listen.  

The  Funds4Teachers event is happening the dates below:

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Boston - June 6
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New York - Sep 26

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David Weisburd hosts Logan Bartlett, Hunter Somerville, and Jason Calacanis to discuss the fundraising market (3:07), M&A (26:45), Google’s huge investment in generative AI (58:15), and much more!

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Timestamps:

(0:00) David Weisburd intros Logan Bartlett, Hunter Somerville, and Jason Calacanis

(3:07) Tiger's recent fund and fundraising indicators

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(13:26) The challenges and realities of venture capital

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(26:45) Startup acquisitions, due diligence, and unethical behaviors in the industry

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(38:20) Cendana and Kline Hill’s $105M fund to buy stakes in seed VC funds

(46:59) The correlation between capital consumption and equity value, and the dangers of excess capital

(54:28) The role of private equity in tech M&A and the future of tech IPOs

(58:15) Google's $100 billion investment in AI and competition in the AI ecosystem

(1:06:30) The challenge of capacity in seed stage investing and the value of a strong community in portfolio management

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In this week's episode we talk about the market's response to geopolitical risks, Jane Street's atypical transparency around Q1 earnings ahead of their bond issuance, and what to do if you get laid off from your Wall Street job.  

The  Funds4Teachers event is happening the dates below:

Locations/Dates
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Boston - June 6
Chicago - June 18
New York - Sep 26

To learn more about how to support this initiative and register click here: https://iconnections.io/funds4teachers/

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I spoke with Tony Robbins about The Holy Grail of Investing and the ultimate strategies for financial freedom.

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Your morning briefing, the business news you need in just 15 minutes.

On today's podcast:
(1) The US and UK launched airstrikes on more than 60 Houthi rebel targets in Yemen, sparking vows of retaliation and a rise in oil prices after weeks of attacks in the Red Sea disrupted commercial shipping.

(2) Oil jumped as the US and allies launched airstrikes against Houthi rebels in Yemen, stepping up retaliation for attacks on ships in the Red Sea that have imperiled flows of fuel and goods through the vital waterway.

(3) European Central Bank President Christine Lagarde warned that a look at Donald Trump's first term as US president raises concerns about his potential return to power in 2025. 

(4) First Citizens Bank can proceed with a $1 billion lawsuit accusing HSBC of poaching dozens of employees and stealing trade secrets from Silicon Valley Bank shortly after its acquisition by First Citizens.

(5) Some of the most influential investors are giving the world's largest private equity firms a message: if you want money for your next fund, here's our list of demands. 

See omnystudio.com/listener for privacy information.

Wrapping up our 3-part Caesars Palace Coup series by interviewing one of the authors, Financial Times writer Sujeet Indap.  Sujeet explains securitization, subordination, and distressed debt investing through the lens of Caesars’ LBO and subsequent restructurings.  We discuss the future of private credit, a segment of the industry currently getting a lot of attention.  Sujeet gives us the inside scoop on what it was like interviewing the titans of private equity, hedge funds, and law (as well as combing through thousands of pages of legal documents).  And we touch on the role (or lack thereof) of women on the private investing side of the industry. 

Caesars Palace Coup, by Max Frumes and Sujeet Indap, is available here:  https://www.amazon.com/Caesars-Palace-Coup-Billionaire-Exposed/

To book a private consulta
tion with Kristen and Jen, click here:  http://intro.co/JenniferSaarbach

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In Part II of this three-part case study of Sujeet Indap and Max Frumes' book Caesars Palace Coup, we pick up in 2008 after Apollo and TPG's $30bn Leveraged Buyout of Caesars closed.  With the economy immediately taking a nosedive, Apollo spearheaded a series of restructurings to stave off bankruptcy.  These restructurings ranged from more vanilla "distress-for-control" maneuvers to extremely questionable, cloak-and-dagger asset transfers and severing of guarantees.  These ultimately culminated in a showdown between the titans of Private Equity and the creditors they'd effectively superseded through expert manipulation of Caesars' legal and capital structures.

To book a 1-on-1 consult with Kristen and Jen, please click here:  http://intro.co/JenniferSaarbach

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Private equity is one of the most coveted job opportunities on the buyside in the current market environment.  In this episode, we do a deep dive into a Leveraged Buyout (“LBO”) using one of the largest, craziest deals in history: the $30bn LBO of Caesars Palace by Apollo and TPG.  In part 1 of this 3-part series, we discuss the deal structure, explain the financing terms, and help you understand the motivations of the private equity titans at the helm of the world's biggest megafunds.  We will walk you through the LBO from start to finish using Financial Times writer Sujeet Indap's fantastic book, Caesars Palace Coup.  

Sign up to attend MISS EXCEL’S FREE MASTERCLASS LIVE 

• Wednesday, March 20 (3/20) at 3pm EST
• Thursday, March 21 (3/21) at 12pm EST
• Friday, March 22 (3/22) at 12pm EST

OR to get the replay:

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Part II of our conversation with Cameron Boland and Kate Kourlis from executive recruiting firm GoBuyside.  Our focus shifts to off-cycle recruiting for private equity firms and hedge funds.  We discuss strategies for navigating your search for your next career, identifying opportunities that set you up for success, do's and don'ts for negotiating the offer, and how recruiters are incentivized to help you succeed.  We also tackle the CRITICAL listener question of: what do I need to know if I'm an international applicant and not a US citizen?  

Cameron Boland is the President of GoBuyside, and Kate Kourlis is the Executive Director of Business Development.  GoBuyside is a community of professionals in the financial services industry. GoBuyside connects employers with top-tier talent, streamlining the hiring process and ensuring access to great candidates for exceptional roles.

To explore GoBuyside's platform, please visit GoBuyside.com

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In this tight labor market, a growing number of companies are trying to discourage workers from quitting by charging them. Stay or pay clauses are becoming a thing in more workplaces. We’ll talk about who really bears the cost of calling it quits. Plus, how Federal Reserve economists are taking a page from journalists. And Snoop Dogg, the master marketer!

Here’s everything we talked about:

• • “Federal Reserve Seeks Anecdotes Over Economic Data for Uncertain Outlook” from Bloomberg

• • “The Stay-or-Pay Clause That Demands You Pay to Quit Your Job” from The New York Times

• • “Snoop explains going smokeless – and it’s not what you thought” from CNN

• • “Thanksgiving Travel: No One Should Pick You Up at the Airport” from The Wall Street Journal

If you’ve got a question, comment or submission for a state drink, send them our way. We’re at 508-UB-SMART or email makemesmart@marketplace

They say they make companies more efficient through savvy management. Critics say they bend the rules to enrich themselves at the expense of consumers and employees. Can they both be right? (Probably not.)

RESOURCES:

• Plunder: Private Equity's Plan to Pillage America, by Brendan Ballou (2023).
• Two and Twenty: How the Masters of Private Equity Always Win, by Sachin Khajuria (2022).
• "Local Journalism under Private Equity Ownership," by Michael Ewens, Arpit Gupta, and Sabrina T. Howell (NBER Working Paper, 2022).
• “Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes,” by Atul Gupta, Sabrina T. Howell, Constantine Yannelis, and Abhinav Gupta (NBER Working Paper, 2021).
• “Leveraged Buyouts and Financial Distress,” by Brian Ayash and Mahdi Rastad (Finance Research Letters, 2021).
• “Have Private Equity Owned Nursing Homes Fared Worse Under COVID-19?” by Ashvin Gandhi, YoungJun Song, and Prabhava Upadrashta (SSRN, 2020).
• “When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education,” by Charlie Eaton, Sabrina T. Howell, and Constantine Yannelis (The Review of Financial Studies, 2020).
• “The Economic Effects of Private Equity Buyouts,” by Steven J. Davis, John Haltiwanger, Kyle Handley, Ben Lipsius, Josh Lerner, and Javier Miranda (SSRN, 2019).
• “How Acquisitions Affect Firm Behavior and Performance: Evidence from the Dialysis Industry,” by Paul J. Eliason, Benjamin Heebsh, Ryan C. McDevitt, and James W. Roberts (The Quarterly Journal of Economics, 2019).
• "In Silicon Valley, Even Mobile Homes Are Getting Too Pricey for Longtime Residents," by Tracy Lien (Los Angeles Times, 2017).
• “The Operational Consequences of Private Equity Buyouts: Evidence from the Restaurant Industry,” by Shai Bernstein and Albert Sheen (SSRN, 2013).
• "Private Equity and Employment," by Steven J. Davis, John C. Haltiwanger, Ron S. Jarmin, Josh Lerner, and Javier Miranda (NBER Working Paper, 2011).

EXTRAS:

• "Should You Trust Private Equity to Take Care of Your Dog?" by Freakonomics Radio (2023).
• "Do You Know Who Owns Your Vet?" by Freakonomics Radio (2023).
• "Mobile Home Parks," by The Economics of Everyday Things (2023).
• "The Secret Life of a C.E.O.," series by Freakonomics Radio (2018).
• "Extra: David Rubenstein Full Interview," by Freakonomics Radio (2018).

SOURCES:

• Brendan Ballou, special counsel at the Department of Justice.
• Dan Glickberg, venture-capital investor.
• Hannah Howard, food writer.
• Sachin Khajuria, investor.

Finding good, high quality childcare has been a growing challenge in the US for a long time. The pandemic only made the situation worse, with all kinds of negative knock-on effects for the economy. So what is actually involved in building out a childcare business? What are the costs? How much can it scale? Can it be made more efficient by changing regulations or subsidies? On this episode of the podcast, we speak with Matt Bateman, a member of the founding team at Higher Ground Education, which operates a chain of over 120 Montessori schools across several states. We discuss how the business of early education works, what the opportunities are, and the constraints on making childcare more abundant and affordable for everyone.

See omnystudio.com/listener for privacy information.

Donald Trump testifies in New York today, Japan’s prime minister turns to stimulus to offset the pain of inflation, private equity is getting pummelled by higher interest rates, and Berkshire Hathaway reported a record amount of cash on hand.

Mentioned in this podcast:

Japan’s PM Fumio Kishida bets on $113bn stimulus to tackle inflation pain

Private equity: higher rates start to pummel dealmakers

Warren Buffett’s Berkshire Hathaway sells stocks as cash pile swells to record levels

Donald Trump prepares to testify in New York civil fraud trial

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Joanna Kao, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music. 

Read a transcript of this episode on FT.com

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Why have equity markets around the world, and in the UK in particular, been shrinking? According to Duncan Lamont and Douglas Abbott of Schroders, the answer is simple: a robust private equity industry means more companies are going private.

The two men joined Merryn Somerset Webb this week on the podcast Merryn Talks Money to discuss this state of affairs, both globally and in Britain where the situation has become extreme. There are 70% fewer listed companies in the UK today than was the case in 1996.

In this week’s aftershow, senior reporter John Stepek joins host Somerset Webb to discuss the solutions posited by Lamont and Abbott for tackling the disappearance of listed UK companies.

See omnystudio.com/listener for privacy information.

For years, low interest rates let private equity deliver huge returns to investors. But now rates are up, and private equity is struggling. Many PE firms are turning to financial engineering to boost results. Today on the show, we wonder how that’s going to turn out. Also we go long the dollar as reserve currency and short the Birkenstock IPO. 

For a free 90-day trial to the Unhedged newsletter go to: https://www.ft.com/unhedgedoffer

Follow Ethan Wu (@ethanywu) and Katie Martin (@katie_martin_fx) on X, formerly Twitter. You can email Ethan at ethan.wu@ft.com.

Read a transcript of this episode on FT.com

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