Institutional Investor (July 18)
“Private equity investors have little to fear from a recession, as the best returns come after these periods.” A recent report by Bain Consulting shows, for example, that “following the bursting of the dot-com bubble, buyout funds generated a median IRR of 25 percent in 2001, 40 percent in 2002, and 47 percent in 2003. In 2009, after the Global Financial Crisis, they posted a 24 percent IRR.” In the near future, however, “private equity firms still face a bumpy road ahead, despite the potentially short duration of the market downturn.”
Tags: Bain Consulting, Bumpy, Buyout funds, Dot-com bubble, Fear, Investors, IRR, Market downturn, Private equity, Recession, Returns
The Week (April 2)
By any measure, Uber has been having a terrible year. Some have posited it could threaten the tech bubble. “Uber is by far the most valuable of the 187 ‘unicorn’ startups valued at $1 billion or more, despite losing at least $1.2 billion in the first half of 2016.” But Uber is unlikely to spark a chain reaction. “The tech industry’s funding sources are more diversified than they were in the original dot-com bubble, and the definition of what makes a ‘technology company’ is also much broader. Odds are, investors will see Uber’s flaws as an isolated case of bad corporate governance, not evidence that they shouldn’t be investing in startups.”
Tags: Chain reaction, Corporate governance, Diversified, Dot-com bubble, Funding, Investor, Isolated case, Startups, Tech bubble, Terrible, Uber, Unicorns
Washington Post (August 26)
“First was the dot-com bubble, then the housing bubble. Now comes the commodities bubble.” The stock market’s current turmoil is “driven at least in part by a bubble of raw material prices. Their collapse weighs on world stock markets through fears of slower economic growth and large financial losses.”
Tags: Collapse, Commodities bubble, Dot-com bubble, Economic growth, Housing bubble, Raw material prices, Stock market, Turmoil
