Infrastructure companies and power utilities have become highly valued due to their stability and steady cash flow, especially during recent economic volatility. Matt O’Brien, President of Connor, Clark & Lunn Infrastructure, shares his insight into the current state of the industry: “Governments at all levels across North America have under-invested in both traditional & electricity infrastructure for several decades, and the result is an ageing asset base in desperate need of renewal. Significant new investment will be required in the coming decades and much of it will have to come from the private sector. The growing need for private sector funding coupled with the attractive risk-return attributes of infrastructure as an asset class have been the catalyst for the formation of large and expanding pools of infrastructure-focused private equity capital.”
Have you ever wondered what, exactly, would private equity do if you partnered with them? It is an important question because over the past forty years companies with private equity investment have outperformed those without. Find out the common set of rules and boost the performance of your company.
Fund raising remains strong for private equity firms in the first half of this year, dropping only slightly from 2007’s record levels, according to a new report by Dow Jones Private Equity Analyst. The weakness in the buyout industry, however, has been offset by strong fund-raising by mezzanine funds and a decent showing by venture capital funds.
Owners of privately held businesses need to ensure that their companies can succeed without them. However, these wishes often clash with an entrepreneur’s desire to preserve equity in a business to finance a comfortable retirement. Thus, succession planning and liquidity planning are intertwined and critical to the future of both the business and the entrepreneur. It is essential to review ways to help the next generation of manager’s purchase your share of the company and let you take your chips off the table.
While valuation and cost of capital are important factors, it is the ability of private equity partners to unlock the company’s long-term potential that should be the final consideration. A well-matched private equity partner will provide access to a strong network of strategic partners, introductions to other entrepreneurs and professionals. Furthermore, it is important not to underestimate the importance of chemistry.
According to a McKinsey & Co. report, there is approximately $300 billion of uninvested capital in the global PE market. This private equity report discusses the seven structural forces that are likely to contribute to the success of the PE industry and shape its future. According to the report, PE funds continue to add value to the Canadian economy through, for example, their emphasis on responsible governance and ownership models.
Dragon’s Den is back with a vengeance this season offering intrigue, drama, cruelty and redemption – better than any soap opera because if you listen to the Dragon’s questions and, yes, to Kevin O’Leary’s digs, you cannot help but learn.
“Every ambitious private business owner should understand the role of investors and how to attract them. Money Magnet is an indispensable guide to the process.” - Austin Beutel, Chairman and CEO, Oakwest Corporation Ltd.
“Very good illumination of the niche.” - Ian W. Delaney, Chairman, Sherritt International Corporation
“I am incredibly impressed with the book!” - Victoria Sopik, President and Founder of Kids & Company, Profit Magazine's #1 Fastest Growing Company 2008
Intensely practical and laced with first-hand stories from entrepreneurs and financiers, Money Magnet is the complete how-to guide to private equity for business founders and owners: what it is and how it works, how and where to find it, how to be successful in attracting it, and all the benefits and pitfalls of raising financing this way.
What’s the secret of successful privately owned companies? Managing the strong performance of their invested capital. Smart owners acknowledge that their passion lies with their business but that they can attract the right financial partners who bring financial know-how and talent as well as capital to the business.