Finance forum: Private equity 16 articles - 4.256 readings


Private equity is a form of venture capital investment in unlisted companies. It involves purchasing shares in companies as equity capital with the aim of earning over time based on the company’s development or its listing on the stock exchange. This type of investment is aimed at companies with high growth potential. It’s also characterised by a more or less direct involvement in the company’s development and decision-making activities to which equity investors are usually entitled.


Is a Ponzi scheme hiding behind part of the private equity market?

Posted on 28.09.2022

Private equity is a form of alternative financial investment that is presented as capable of generating large returns, albeit at the price of high risks (some of which one may not even be aware of: becoming an involuntary speculator, for example). The problem, however, seems to be not only the riskiness, but also some operational modalities where the lack of transparency greatly increases the risks. Private equity and Ponzi scheme risks A few months ago, the chief investment officer of Amundi ...

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Abrdn enhances growth opportunities through Interactive Investor acquisition

Posted on 06.12.2021

Abrdn bought Interactive Investor for £1.49 billion, subject to regulatory approval, after announcing talks with J.C. Flowers & Co on the potential takeover. The deal allows Abrdn to enhance its presence and provides growth opportunities within the fast-paced personal wealth market.  Interactive Investor is a subscription-based investment platform offering customers flexibility, investment choices, and a fixed fee pricing model. As at 30 June 2021, it had £55 billion in ass ...

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Investing in UK startups? The proposed DMU M&A clampdown could be a game changer

Posted on 20.09.2021

A proposed competition clamp down on startup mergers and acquisitions (M&A) threatens the UK’s startup innovation and growth. The CMA’s Digital Market Unit (DMU) has proposed exit restrictions on funds invested in UK startups. According to a new survey by the Coalition for a Digital Economy (Coadec), half of the surveyed investors would reduce their investment significantly if they couldn’t exit their positions freely. Another 23% stated they’d stop investing in UK st ...

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UK inward M&A deals soar to £27.7 in Q2 2021 billion signalling strong economic prospects

Posted on 14.09.2021

Private equity deals have had their year and so have mergers and acquisitions (M&A). According to data from the Office for National Statistics (ONS), the total value of inward M&As reached £27.7 billion in Q2 2021. That shows foreign companies have been eyeing UK companies as attractive investments. Deal values have more than tripled compared to Q1 2021 when deal values totalled only £8.3 billion.  Domestic deals also witnessed heightened activity as UK companies spent ...

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Want to benefit from private equity’s high returns? 3 investment options are available

Posted on 03.09.2021

Private equity has had a stellar year. Activity within the sector is booming, with many deals already closed or announced. The current investment environment is suffering from low yields and stock market volatility. So investors are turning to private equity to land desired returns. After all, low borrowing rates support the private equity business model. In H1 2021, almost 785 deals worth £74.7 billion were sealed. The industry hasn’t seen such numbers since 2017, signalling a favo ...

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Should we be alarmed by the recent private-equity buying spree?

Posted on 12.08.2021

Private-equity firms are having a stellar 2021. Buyout deals reached 20-year highs with the cumulative value totalling £156 billion year-to-date. Parker-Hannifin bought the aerospace firm, Meggitt, for £6.3 billion early this month. A consortium led by Blackstone bought Signature Aviation for £3.5 billion, and TDR Capital and Issa brothers bought supermarket chain Asda for £7 billion. The most recent battle is for UK supermarket chain Wm Morrisons and Vectura, a respirato ...

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UK private equity investments totalled £73.7 billion in H1 2021 supporting 61% of UK mid-caps

Posted on 06.08.2021

Private equity investments are on the rise as the pandemic pressured corporate finances. Many companies sought funding from private equities to stay afloat, aside from the government support packages they received.  According to a recent KPMG study, the value and number of private equity in H1 2021 reached highs last seen in 2017. The vaccine rollout and looser restrictions led to the optimism of a global recovery, fuelling deal creation. Deal value totalled £73.7 billion across 785 ...

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Bridgepoint float highlights private equity executive wealth

Posted on 26.07.2021

Bridgepoint (BPT) floated on the LSE last week, offering a rare view into the scale of private equity profits. The private equity firm reported a 29% surge in its stock price at the start of trading last Wednesday. That meant its 166 employees are sitting on a £2.5bn combined gain.  Although some top executives cashed in on some shares, they’ve held on to a hefty stake. William Jackson, the firm’s executive chair, retained a stake worth £42 million while selling sha ...

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Supermarket shares rise as Morrison’s bidding war continues

Posted on 06.07.2021

The latest in the bidding war on Wm Morrison Supermarkets Plc. (Morrisons) comes from a consortium made up of Fortress Investment Group, Koch Industries, and Canadian pension giant CPPIB. They offered to buy Morrisons for 252p per share plus a 2p per share special dividend, estimating Morrisons’ value at £6.3 billion. The bid beats the 230p per share offered last month by Clayton Dubilier & Rice (CD&R). JO Hambro said last week it would consider a higher bid of 270p per shar ...

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